Fidelity Tax Advantage Fund: Save Tax by investing in Fidelity ELSS

This article contains details & information about Fidelity Tax Advantage Fund (Fidelity Tax Advantage Fund ELSS). Also covered is the review, analysis, details and opinion about investing in Fidelity Tax Advantage Fund
Its time the financial year is ending in India and individual tax payers, expecially the salary class, are worried about tax savings. Before the Direct Tax Code or DTC gets implemented about which there are concerns that it might take away the tax savings offered by ELSS, investors might have this last chance for getting tax benefits for investing in an Equity based mutual fund.

What actually is the Fidelity Tax Advantage Fund?
Fidelity Tax Advantage Fund is a mutual fund from the world renowned Fidelity mutual fund house. Like any other mutual fund, this fund too collects money from the common investors and invests it in equity/stocks with an aim to generate returns.
It is categorized as an ELSS or Equity Linked Saving Scheme, which gives investors a tax benefit as well.

Fidelity Tax Advantage Fund Details

What is unique about Fidelity Tax Advantage Fund?
Apart from being a equity based mutual fund, this fund also offers tax savings under the ELSS scheme under section 80(C) of Income tax act i.e. any investments made in this scheme (for the entire cap of 1 Lakh Rs. under section 80(C)) will be exempted from taxes.
See related: Complete List of Qualifying investments under section 80C and Tax Savings details for Section 80C

What are the other details about Fidelity Tax Advantage Fund
The fund has been around since 2006. Since it offers tax savings, it comes with a lock-in period of 3 years i.e. investors investing into this fund for tax saving purpose cannot withdraw their money for 3 years.

Multiple options available for investments:
Growth Option
Dividend Option - Payout, Reinvestment facilities

Minimum purchase amount:Rs. 500 per application.

Mr. Sandeep Kothari is the fund manager.

What is the benchmark index for Fidelity Tax Advantage Fund
Fidelity Tax Advantage Fund tracks the BSE 200 index and is an actively managed fund

Is the SIP facility available in Fidelity Tax Advantage Fund?
Yes, SIP or Systematic investment Plan is available.
For SIP: Rs. 3,000 (minimum single investment of Rs. 500 and in multiples of Rs. 500 thereafter, minimum 6 instalments).

What are the entry load and exit load charges for Fidelity Tax Advantage Fund
Entry Load NIL
Exit load NIL

What are the other competitor products to Fidelity Tax Advantage Fund
Tax Saving Investment Funds:
Lots and lots are availble, here are a few:

- Principal Personal Tax Saver Fund (ELSS),

- SBI Tax Advantage fund

- Reliance Equity Linked Savings Fund and many more

- SBI Magnum Taxgain

If you are looking for tax saving investments on the debt side, then there are these long term infrastructure bonds plus tax saving bond issues by various other government organizations

- IRFC Tax Free Bonds

- NHAI Tax Free Bonds issue

- HUDCO Tax Free Bonds

Then there are several infrastructure bonds issues currently open which will provide you tax savings like
1) IDFC Infrastructure Bonds for Tax Saving

2) L&T Infra Bonds for Tax Saving

3) SREI Infra Bonds for Tax Saving

Investors looking for tax savings have a lot of choice for investments in various financial instruments. One can take a call about which tax saving investment to choose based upon his own capital availability, tax bracket and risk appetite.