Bob Mutual Launches 3rd Tax-Saving Scheme

BoB Mutual Fund, sponsored by Bank of Baroda, has launched its third close-ended tax benefit-cum-growth scheme, the BoB Equity Linked Savings Scheme 1997.

The scheme will remain open for public subscription till March 31.

BoB Mutual Fund has decided to launch the scheme after receiving encouraging response to its previous tax saving schemes despite adverse market conditions.

The duration of the scheme is for 10 years from the date of allotment with a lock-in period of three years.

Bank of Baroda Mutual Fund will have the option to repurchase the units after the lock-in period.

The fund will initially be listed at the National Stock Exchange and may also be listed at other exchanges after a period of three years.

The fund has identified all the 214 Bank of Baroda branches as collection centres for investors convenience.

All original unit holders will be covered under accidental death insurance ranging from Rs 25,000 to Rs 5 lakh depending on the amount of investment.

Investors will be paid 12 per cent interest on application money from the date of deposit till March 31, 1997 (date of closure).

Bank of Baroda,, the sponsor bank, has agreed to issue demand drafts free of charge to the investors investing in the scheme.

This is expected to benefit investors who reside in areas not covered by the collection centres.