HSBC Mutual Fund is all set to launch an equity tax saver
fund. According to the offer document filed with the Securities
and Exchange Board of India, the fund seeks to generate
long-term capital growth through investments across all
market capitalisation stocks.
scheme is an equity-linked savings scheme and has a lock-in
period of three years. Investors subscribing to the fund
would be charged an entry load of 2.25 per cent on investments
below Rs5 crore. There is no exit load, according to the
fund aims to be predominantly invested in equity and equity
related securities, but will also invest in fixed income
securities and money market instruments, it says. The
offer document says that equity
investments by the fund would be between 80-100 per cent
and up to 20 per cent can be invested in debt and money
offer document with SEBI and is awaiting regulatory clearances.