Religare Aegon MF Plans To Launch Tax Saver Fund - Oct 17, 2008

Religare Aegon Mutual Fund has filed offer document with Securities and Exchange Board of India (Sebi) to launch Religare Aegon Tax Saver Fund, an open-ended equity linked savings scheme with a lock in period of 3 years. The face value of the new issue will be Rs 10 per unit. The scheme seeks to generate long-term capital appreciation by investing predominantly in equity and equity related instruments including equity derivatives.

The scheme will offer growth & dividend options. Dividend option will further offer monthly dividend payout and reinvestment facility. The minimum application amount will be Rs 500 and in multiples of Rs 500 thereafter. The scheme seeks to collect a minimum corpus of Rs 1 crore during NFO period. The scheme will invest 80- 100% in equity and equity related instruments with high-risk profile. It will invest up to 20% in money market instruments and debt securities with low to medium risk. Investment in securitised debt including pass through certificate (PTC) shall not exceed 20% of the net assets of the respective plans.

The scheme invest maximum of 20% of the net assets in the derivatives. The scheme shall not deploy more than 30% of its net assets in securities lending and more than 5% of the net assets of the respective plan will be deployed in securities lending to any single counterparty.

The scheme will charge an entry load of 2.25% in respect of each purchase/ switch in of units less than Rs 5 crore in value. In respect of each of each purchase/ switch in of units greater than Rs 5 crore in value, no entry load is payable. However, investors will not be allowed pay exit load