The local mutual fund industry is finding it tough to sell its tax-saver equity schemes as their poor performance, uncertain stock market prospects and competition from taxsaving bonds have taken the sheen off the product. In the first four months of the 'tax season', starting from October and ending in March, equity-linked savings schemes (ELSS) have collected just over Rs 200 crore, which is higher than Rs 80 crore they attracted in the same period last financial year, but much lower than what they garnered between 2007 and 2010. "Inflows into equity funds have not been that great this year. Returns on these funds have also not been very encouraging. On top of it all, tax-free bond issuances have been attracting a lot of money from small retail investors," said Karan Datta, national sales head, Axis Asset Management.
Source: Economic Times
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