HSBC Mutual Fund too has come out with HSBC Tax Saver Equity Fund (HTSEF), the first open-ended Equity Linked Saving Scheme (ELSS) from the fund house. (Note that every mutual fund can have one open-ended tax saving scheme and other ELSS NFOs have to be mandatorily close ended.)

HSBC Tax Saver Equity Fund too offers deduction under Sec. 80C and the minimum lock-in period would be three years as in any other ELSS. Investment expert Sandeep Shanbhag believes that this enforced lock-in offers the opportunity to the fund manager to take long-term calls without having to worry about creating liquidity for daily redemptions. To that extent, the performance of ELSS funds in general have been better than their open ended counterparts, he added. (Check out - Mutual Fund NFOs open now)

Advisor Hemant Rustagi feels, ELSS is one of the best options among the instruments eligible for tax benefits under section 80C as they provide an opportunity to participate in the equity market and also hel ...more

Good scheme