Mahindra AMC launches Mahindra Mutual Fund Kar Bachat Yojana - an Open-ended Equity Linked Savings Scheme

Save Tax and Build a Tax-free Investment Corpus through Long Term Investment

Mumbai, August 22, 2016: Mahindra Asset Management Company Pvt. Ltd. (MAMCPL), the investment manager to Mahindra Mutual Fund and a wholly owned subsidiary of Mahindra Finance, today, launched Mahindra Mutual Fund Kar Bachat Yojana - an Open Ended ELSS Scheme with a 3 year lock-in period. The New Fund Offer closes on October 7, 2016, and will reopen for continuous sale and repurchase from October 19, 2016.

Mahindra Mutual Fund Kar Bachat Yojana, is targeted at tax payers who can avail of the benefit of deductions allowed under Section 80C of the Income Tax Act 1961. It will provide these investors with a tax-saving option under section 80C. Additionally, since each investment remains locked in for a period of three years, all redemption proceeds are tax free and hence the scheme gives investors an opportunity to build a tax-free corpus over the long term, on investments beyond the 80C limits as well.

Mr Ashutosh Bishnoi, CEO and Managing Director, MAMCPL said, "This Yojana is for those people who not only want to save tax but also wish to create a tax-free corpus through their long term investments. They either want to build careers, family financial security, a home, family assets or upgrade their lifestyle. With this Yojana, we are launching a theme 'Kuch Kar Bachayein. Kuch Kar Dikhayein'. It is a call to action for younger tax payers to seize this opportunity to make something of their future by allowing the long term nature of equity investments to work for them."

He added, "The mutual fund industry pre-dominantly concentrates on the top few cities in India. We chose to take the path less travelled, to tap into the savings and investment potential beyond urban India in the semi-urban and rural markets. Our approach revolves around educating the potential customer in our priority markets and explaining the investment opportunities to them in their own language, starting with the product names. Mahindra Mutual Fund Kar Bachat Yojana, is the first endeavor in that direction. We believe that helping the customer understand the role of a specific mutual fund product in his or her life will be the key to inculcating an investment culture in our key markets."

The Open Ended ELSS Scheme, seeks to generate long-term capital appreciation through a diversified portfolio of equity and equity related securities.

Mr Ashutosh Bishnoi, further said, "In July we launched Mahindra Liquid Fund (an open ended liquid scheme). Mahindra Liquid Fund, more known as a cash management tool for investors, can be a great alternative to a regular savings bank account. The scheme had touched an AUM of Rs 1000 Cr on July 31, 2016, that is in its first month of launch."

Annexure 1: Mahindra Mutual Fund Kar Bachat Yojana
(an Open Ended ELSS Scheme with a 3 year lock-in period)

This product is suitable for investors who are seeking*:

  • Long term capital appreciation
  • Investment predominantly in equity and equity related securities

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Scheme Overview:

  • An open ended equity linked savings scheme with a 3 year lock-period
  • Units of this scheme can be purchased anytime during and post New Fund Offer
  • The scheme asset allocation will be 80-100% in equity and equity related securities and 0-20% in debt and money market securities
  • Units can only be redeemed after 3 years from the date of purchase

Product Benefits:

  • Potential Capital Appreciation: Scheme invests in a diversified equity portfolio thereby offering the possibility of growing investments.
  • Tax Benefit: Investments in this scheme are entitled to tax exemption under section 80C. Possibility of saving upto Rs 46,350/-**. All redemption proceeds are tax free!
    Lock-in Feature: This feature endeavors to protect investments from impact of short term market volatility. Lock-in of only 3 years! Other traditional tax savings options may have longer holding periods.

*The Scheme does not guarantee or assure any returns.
**Assuming investor is in the highest tax bracket and uses the entire Rs 1.5 lac limit available under Section 80C of Income Tax Act 1961 for investing in only Mahindra Mutual Fund Kar Bachat Yojana. The tax benefit is calculated on the basis of currently applicable marginal tax rate of 30.9% (for income up to Rs 1 crore) applicable for the current highest tax bracket. Please consult your financial /tax advisor before investing.

Product Details:

Available Plans for subscription by investors: -> Regular -> Direct

Available Options: -> Dividend -> Growth (Default)

Available Sub-options/ Facilities: -> Dividend Payout

Minimum Application and Redemption Amount / Number of Units:

Purchase Rs. 500/- and in multiples of Rs. 500/- thereafter
Additional Purchase Rs. 500/- and in multiples of Rs. 500/- thereafter
Repurchase Rs. 500/- or 50 units or account balance, whichever is lower

Maximum Application Amount: No Limit

SIP Details:

Purchase Rs. 500/- and in multiples of Rs. 500/- thereafter
Additional Purchase Rs. 500/- and in multiples of Rs. 500/- thereafter
Repurchase Rs. 500/- or 50 units or account balance, whichever is lower

Entry Load: Not applicable
Exit Load: Nil
Benchmark: Nifty 200

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Annexure 2: Company Profile

About Mahindra Mutual Fund
Statutory Details: Mahindra Mutual Fund has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Mahindra & Mahindra Financial Services Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Mahindra Trustee Company Private Limited. Investment Manager: Mahindra Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.

About Mahindra & Mahindra Financial Services Limited
Mahindra & Mahindra Financial Services Limited (Mahindra Finance), part of the Mahindra Group, is one of India’s leading non-banking finance companies. Focused on the rural and semi-urban sector, the Company has over 4 million customers and has an AUM of over USD 6 billion. The Company is a leading vehicle and tractor financier and also offers fixed deposits and loans to SMEs. The Company has over 1,100 offices across the country and is the first Non Banking Finance Company from India to form a part of Dow Jones Sustainability Index.

The Company has a Joint Venture in the US, Mahindra Finance USA, in partnership with De Lage Landen, a subsidiary of Rabo Bank, for financing Mahindra tractors in US.

The Company's Insurance Broking subsidiary, Mahindra Insurance Brokers Limited (MIBL), is a licensed Composite Broker providing Direct and Reinsurance broking services.
Mahindra Rural Housing Finance Limited (MRHFL) a subsidiary of Mahindra Finance provides loans for purchase, renovation, construction of houses to individuals in the rural areas of the country.

About Mahindra

The Mahindra Group focuses on enabling people to rise through solutions that power mobility, drive rural prosperity, enhance urban lifestyles and increase business efficiency.

A USD 17.8 billion multinational group based in Mumbai, India, Mahindra provides employment opportunities to over 200,000 people in over 100 countries. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two wheeler industries.

In 2015, Mahindra & Mahindra was recognized as the Best Company for CSR in India in a study by the Economic Times. In 2014, Mahindra featured on the Forbes Global 2000, a comprehensive listing of the world’s largest, most powerful public companies, as measured by revenue, profit, assets and market value. The Mahindra Group also received the Financial Times ‘Boldness in Business’ Award in the ‘Emerging Markets’ category in 2013. Visit us at

Media contact information:

Metabelle Lobo
General Manager, Group Communications
Mahindra Group
Contact: +91 9769212078

Gargi Datta,
Manager - Product and Process
Mahindra Asset Management Company Pvt Ltd
Contact: 022 - 66327928

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