Edelweiss launched Edelweiss Multi Asset Allocation Fund mainly to target those who are eager to save tax from their debt side of the portfolio. AMC claims that it is DIFFERENT. What is different here? Whether one should invest in this fund just for the sake of tax saving and what are the risks involved here?
It is an open-ended scheme investing in Equity, Debt, Commodities, and units of REITs & InvITs. The asset allocation specified by the fund document is as below.
# 35% to 40% in equity arbitrage. This is mainly kept to take advantage of debt fund indexation benefits. As you may be aware that effective from 1st April 2023, the debt fund taxation rules changed. I have explained the same in detail in my earlier post “Debt Mutual Funds Taxation from 1st April 2023“. Do remember that the fund will not have a direct exposure to equity but an exposure to equity cash future. It is mentioned that the exposure may be in the range bound of 10% to 80%. However, I am sure…