Navi Mutual Fund (MF) on Tuesday launched ELSS Tax Saver Nifty 50 Index Fund. This is only the second passive tax saver fund in India, after IIFL's ELSS Nifty 50, which was launched in December 2022.
The passive ELSS launch by Navi MF comes weeks after it stopped taking fresh inflows in its active ELSS fund, a condition set by the markets regulator.
MF regulations allow fund houses to launch only one type of ELSS fund, either active or passive. Recently, the Securities and Exchange Board of India (Sebi) had clarified that fund houses that have active ELSS can start a passive one by stopping inflows into their active scheme.