This is tax time and you are still wondering how to save some extra bucks. What if I tell you that not only you can save tax Under Sec 80G, but also it is a unique opportunity to help Cancer Patients to access treatment and rehabilitation. HDFC’s New Fund HDFC Charity Fund for Cancer Cure provides this opportunity.
This fund is a stand alone product from any mutual fund company which helps fulfill the CSR (Corporate Social Responsibility). I really think HDFC Charity Fund for Cancer Cure is worth looking if you want to donate something meaningful to the society and investing to save tax at the same time.
HDFC Charity Fund for Cancer Cure
The fund besides an investment avenue is also aimed to help the underprivileged section of the society.
About the Product: It is a 3-year close ended income scheme which was launched in association with Indian Cancer Society (ICS), a Public Charitable Trust and India’s oldest anti-cancer NGO established to fight cancer. This fund was launched in 2011 for the first time and then renewed in 2014 and now it will be relaunched in 2017. New as a well old investor can buy units for this noble cause.
Subscription Details: The third NFO shall open for subscription on March 10, 2017, and close on March 24, 2017. The fund is proposed to have two plans in this scheme viz – Arbitrage Plan & Debt Plan.
This has been done due to the incidence of DDT in the debt plan. Arbitrage option is treated as equity component hence DDT will not apply, saving more units for the investor and the cancer patients.
How does the fund works?
The fund is invested in Debt or Arbitrage securities. The investor has the choice to donate 50% or 100% of the dividend amount. The fund is managed by HDFC AMC and is a personal close venture of its MD Milind Barve. The AMC matches the dividend that is announced (max 15 Cr), so it is a double aid for the cancer patients. Also, the AMC does not charge investment management charges for this fund.
This is how it works:
The achievement so far: In 2014 when it came up for maturity and you would be happy to know that on behalf of investors and together HDFC AMC, has donated ~ Rs 64 crores to ICS. The donation has made an invaluable difference in the lives of over 3,100 cancer patients from 28 states across the country.
The help is extended to cover following things:
Tax Saving under for Companies: The dividend income on investment is eligible as Corporate Social Responsibility (CSR) contribution provided such contribution is treated as part of the Investors’ CSR Policy and requisite approvals are in place. Such contribution can be classified under `Preventive Health Care’ under Schedule VII of the Companies Act 2013.
Tax Savings under Section 80 G for Individuals: Donation of income from the scheme will be also eligible for deduction U/s 80G of the Income Tax Act, 1961. So 50% of your contribution is allowed to be deducted from your Gross Total Income. This is above the Sec80C & 80D benefit.
Main Points:
- Minimum Amount INR 50,000 and multiples of INR1000
- Dividends are contributed for cancer cure in association with Indian cancer cure Society
- The principal of the investors comes back at the end of three years ie after maturity of the product.
- Two Plans: Debt and Arbitrage with the option of 50% or 100% dividend donation.
- Product Qualifies for both CSR (dividend under schedule VII of the Companies Act 2013.) as well as Section 80 G
- NFO Closes on March 24, 2017
HDFC Charity Fund for Cancer Cure NFO advertisement is also uploaded on YouTube. Below is the link
Final Closing Words:
I received a WhatsApp that in the recently closed IPO of Dmart. The subscriptions crossed 2 Lakh crores which are roughly 2% of our GDP. This is the liquidity that our investors have. As a planner, we also advise a lot of schemes & funds which will help you reach your goals. But this scheme is no such promise because the scheme itself is a fulfilling idea. Our help can really save lives and families.
The other experience I have had is that wherever I have gone and spoken about this fund, about this initiative, I have always seen a keen willingness to give. The only thing that has been holding back so many people was a lack of awareness of credible programs they can extend their support to. It’s really for all of us, therefore, to make that effort reach out for this credible program with an established track record. The more we raise awareness and funds, the more we will be able to save lives.
In case you want to invest, I can help you without anything in return, that’s my promise. Remember the offer closes on 24th March 2017.
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