Navi Mutual Fund has decided to stop all inflows in Navi ELSS Tax Saver Fund, an actively managed equity-linked savings scheme, with effect from Monday as the fund house will launch a passive ELSS scheme, the fund house said in a newspaper notice today.
The notice also stated that no inflows, including systemic investment and transfer plans, would be accepted beginning Tuesday.
The fund house stated that, subject to a lock-in period of three years from the date of allotment, unitholders will be entitled to redeem their units from the ELSS Tax Saver Fund.
Additionally, it was said that, subject to receiving the required permits, the fund firm intends to consolidate the two ELSS schemes after the three-year mark.
The Securities and Exchange Board of India stated in a circular from May that mutual funds could use index funds to start either an active ELSS plan or a passive ELSS scheme.