Invesco India Tax Plan – Growth is an open-ended equity linked savings scheme that comes with a statutory lock-in period of three years. The scheme is ideal for investors who want long-term capital growth through investment in equity and equity-related securities. Since this is a tax plan, it also offers tax benefits under Section 80C of the Income Tax Act, 1961.
Investment Objective of Invesco India Tax Plan – Growth
The investment objective of Invesco India Tax Plan – Growth is to generate capital appreciation in the long term via investment in a diversified portfolio that consists of mainly equity and equity-related instruments.
Key Features of Invesco India Tax Plan - Growth
Here are some of the key features of Invesco India Tax Plan - Growth:
| Type of Fund | Open-ended equity linked savings scheme with a three-year statutory lock-in period |
| Plans Available | Invesco India Tax Plan and Invesco India Tax Plan – Direct Plan |
| Options Under Each Plan | Both of the plans available under this scheme come with the growth option and the dividend option. The dividend option has a further sub-option – Payout facility |
| Systematic Investment Plan | Available |
| Systematic Transfer Plan | Available |
| Systematic Withdrawal Plan | Available |
Investment Amount for Invesco India Tax Plan - Growth
| Minimum Application Amount | Rs.500 (plus in multiples of Rs.500) |
| Minimum Additional Investment | Rs.500 (plus in multiples of Rs.500) |
| Minimum Instalment for Systematic Investment Plans | Rs.500 |
| Minimum Instalment for Systematic Withdrawal Plan | - |
| Entry Load | Nil |
| Exit Load | Nil |
Asset Allocation for Invesco India Tax Plan - Growth
| Instruments | Allocations (Percentage of total assets) | Risk Profile |
| Equity and equity-related securities | 80% to 100% | High |
| Money market instruments | 0% to 20% | Low to medium |
Who can Invest in Invesco India Tax Plan - Growth?
- Indian residents who have attained the age of 18 years
- Legal guardians or parents of the individual (for investments made on behalf of minors)
- Hindu Undivided Families via Karta
- Partnership firms through any one of the partners of the firm
- Sole Proprietorships via the proprietor
- Persons of Indian Origin (PIOs) and Non-Resident Indians (NRIs)
- Industrial and scientific research organisations
- Body of Individuals (BOI) or Association of Persons (AOP)
- Companies, Public Sector Undertakings, corporate bodies and societies registered under the Societies Registration Act, 1860
- Banks (inclusive of regional rural banks as well as co-operative banks), and financial institutions
- Navy, Air Force, Army and other paramilitary units
- Schemes of other mutual funds that have been registered with the Securities and Exchange Board of India
- Religious, Charitable or other Trusts
- Foreign Portfolio Investors (FPIs) registered with the Securities and Exchange Board of India
- Corporate bodies or multilateral funding agencies that were created outside the country with authorisation from the Reserve Bank of India or the Government of India
- AMC, Trustee, or sponsor
- Gratuity, Pension, or Provident Fund
NAV Disclosure and Benchmark for Invesco India Tax Plan - Growth
The direct plan of Invesco India Tax Plan has a separate NAV. The NAV of this fund will be calculated on a daily basis and the AMC is required to disclose the Net Asset Value on its website as well as on the website of the Association of Mutual Funds in India before 9:00 p.m. on every working day.
The formula used to calculate the NAV of the scheme is as follows:
(Fair Value or Market Value of the Scheme’s investment + Current Assets - Current Liabilities and Provisions) / Number of units outstanding under the scheme
The computation of the scheme’s NAV is calculated throughout the year and disclosed at the end of each business day.
Benchmark Index of Invesco India Tax Plan - Growth:
The benchmark adopted by Invesco India Tax Plan - Growth is S&P BSE 200 Index.
Invesco India Tax Plan - Growth Fund Manager
Invesco India Tax Plan - Growth is managed by Mr. Amit Ganatra and Mr. Dhimant Kothari. Both individuals have been managing the fund since January 2007, Mr. Ganatra has over 15 years of experience in Indian equity markets, while Mr. Kothari has over 12 years of experience in the industry and equity research.
Investment Restrictions of Invesco India Tax Plan - Growth
The following are some of the major investment restrictions of Invesco India Tax Plan – Growth:
- The scheme is not allowed to invest over 10% of its Net Asset Value in equity or equity-related securities of a particular company or in units of venture capital funds or in listed securities.
- The scheme is not allowed to invest over 5% of its Net Asset Value in equity-related securities, unlisted equities shares, unlisted securities, or units of venture capital funds.
- The scheme is not allowed to own over 10% of the paid up capital carrying voting rights of a particular company.
- The scheme is not allowed to invest in any unlisted instruments of a group company or an associate of the sponsor, or in securities that are issued via private placement by a group company or an associate of the sponsor, or in listed instruments of the sponsor’s group companies which is more than 25% of the net assets.
- The scheme is not allowed to invest in fund of funds schemes.
Dividend Policy of Invesco India Tax Plan - Growth
The Trustees are responsible for the declaration of dividends under the dividend option of the scheme. However, the declaration of dividends will depend upon the availability of distributable surplus computed in keeping the regulations set by the Securities and Exchange Board of India.
Why you should invest in Invesco India Tax Plan - Growth
Invesco India Tax Plan – Growth is a good option to consider as it offers tax benefits under Section 80C of the Income Tax Act, 1961. It also aims at generating capital growth in the long term by making investments in equity and equity-related securities. If you want income for the long term along with tax benefits under Section 80C, Invesco India Tax Plan – Growth is for you.
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