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Passive ELSS

Yes you can of course, recently only SEBI has announced that now the AMCs ( Mutual Fund houses) will be able to launch PASSIVE ELSS funds for tax saving purpose under sec 80C upto 1.5 Lakh. The fund category will be investing the amount in the indices, ETFs etc which will be passively managed and hence the expenses are reduced. The amount will invested in upto top 250 companies so the indices can be Nifty 50, Nifty next 50, Nifty 250 etc.

“Passive Funds will have Less Expense Ratio compared to active funds”

As per this criteria, the exposure in terms of market capitalisation would be focused on large cap and mid cap. Passively managed funds are good for investors. But there is one condition here, now the control is in hands of AMCs ( Mutual Fund house ) as which category they want to launch Active ELSS or Passive ELSS.

AMCs will be able to launch any one of the schemes only. Either Active ELSS or Passive ELSS.

After a while it is possible that this choice goes to the investors too, that in which fund they would like to invest Active or Passive ELSS for Tax saving purpose, says Swarup Mohanty, CEO, Mirae Asset Mutual Fund.

Do you think this would be a good option to bring in the markets?? Will people invest in this?? If you are not able to figure out how to invest? where to invest? We are here to help. Comment Down below what do you think about Passive ELSS??

– Pooja Patel, CFP CM