Latest news with #flexicap
Economic Times
6 days ago
- Business
- Economic Times
Is ELSS losing its appeal in the new tax regime?
Getty Images The equity scheme assets grew by nearly 22% from ₹26.82 lakh crore to ₹32.69 lakh crore in this period. Mumbai: Is it the beginning of a slow death for equity-linked savings scheme (ELSS), the once-popular tax-saving offering by mutual funds? With several investors shifting to the new tax regime, the demand for this equity scheme category is dwindling as fresh money is drying up, while old-timers are pulling money out after the three-year mandatory lock-in. ELSS has seen net outflows of ₹1,616 crore in the first quarter FY26. Over the last 12 months, the ELSS category has seen net inflows of ₹535 crore, compared to flows into the flexicap category worth ₹56,309 crore. "Many taxpayers have switched or are switching to the new tax regime, which is now very much attractive," says Gautam Nayak, partner, CNK and Associates. "Since there are no tax benefits available under Section 80C, these investors would not want to invest in ELSS schemes and lock in their investments for 3 years." ELSS was a popular category for individuals as it had the lowest lock-in period compared to comparable tax-saving options such as public provident fund (PPF), national savings certificates (NSC) and five-year tax-saving fixed deposits, among others. Moreover, its returns have been superior because it's an equity-oriented product. Investors could park up to ₹1.5 lakh in a financial year and get tax savings under Section 80C of the Income Tax Act in the old tax regime. However, in the new tax regime, this benefit is not the last year, the ELSS category has seen the slowest growth, with assets under management moving up from ₹2.33 lakh crore to ₹2.49 lakh crore-a rise of 6.9%. The equity scheme assets grew by nearly 22% from ₹26.82 lakh crore to ₹32.69 lakh crore in this period.
Entrepreneur
10-07-2025
- Business
- Entrepreneur
Shaan Patel Asset Management Launches INR 200 Cr Category III AIF for HNIs
The fund adopts a flexi-cap approach, investing across large, mid, and small-cap stocks, with a maximum allocation of 10% per stock. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Shaan Patel Asset Management (SPAM) has launched its first Alternative Investment Fund (AIF) under the SEBI-registered Category III segment, marking a significant step in its expansion into the active equity investing space. The open-ended fund, which officially goes live on Thursday, has already secured INR 25 crore in investor commitments prior to its rollout—indicating strong early interest. With a target corpus of INR 200 crore, the fund is aimed at High Net Worth Individuals (HNIs) and family offices seeking an active, data-driven equity investment strategy. It adopts a flexi-cap approach, investing across large, mid, and small-cap stocks, with a maximum allocation of 10% per stock. The portfolio will remain concentrated, holding 12–15 high-conviction ideas, selected through a blend of deep fundamental research and quantitative analysis. The fund distinguishes itself through an "intelligent churning" strategy guided by quant signals. This model enables the fund to enter and exit positions based on dynamic valuations, allowing it to capture multiple growth phases of a stock. The approach aims to reduce average purchase costs, lock in partial gains, and improve long-term compounded returns. Shaan Patel, Chief Investment Officer at SPAM, said, "We don't believe in simply buying and holding indefinitely. Instead, we actively monitor every position, taking partial exits when valuations stretch and re-entering when opportunities arise. Our quant-driven signals guide these moves with discipline and precision." Benchmarking against the NIFTY 500 Index, the fund seeks to outperform while maintaining strong risk controls. It caters to investors looking for alternatives to traditional long-only strategies, especially those interested in fast-growing sectors such as artificial intelligence, electric vehicles, fintech, and renewable energy. The minimum investment amount is set at INR 1 crore, catering to investors looking to build long-term wealth through a differentiated, systematic, and forward-looking approach.
