The assets under management of ELSS grows six per cent in FY11 due to market upswing even as folio closures continue
Mumbai: Tax savings schemes continue to bear the brunt of DTC implications. Equity linked saving schemes (ELSS) witnessed folio closures to the tune of 1.52 lakh in FY11, according to SEBI data.
ELSS category has 84.51 lakh folios as on March 2011, compared to 86 lakh folios in 2010. Around one lakh folios closed in the close-ended ELSS category.
Currently there are 48 tax saving schemes, including 12 close-ended schemes. These schemes manage Rs 25,569 crore as on March 2011, up six per cent from Rs 24,066 crore in 2010.
In the open-ended category some 50,992 folios were closed in FY11. In the open-ended category there are 73, 69,747 folios, compared to 74, 20,739 folios in 2010.
According to market experts, these funds have failed to provide good returns due to their exposure to mid and small cap stocks which were battered during the correction between November 2010 and February 2011.
“The AUM is up due to market appreciation but net inflows have come down. Without tax exemption, this may not be a great product once the DTC comes in,” says Srinivas Jain, CMO, SBI Mutual Fund.
