In a statement, the fund house said the scheme offers income tax benefits up to Rs 1.50 lakh under Section 80C with a statutory lock-in period of three years.
The scheme aims to generate long-term capital appreciation through a diversified portfolio of equity and equity-related securities.
The minimum initial investment shall be Rs 500 and multiples of Rs 500 thereafter.
The scheme will open on Thursday and close on July 18 and again reopen on July 26, 2019.
"We had been receiving repeated requests for an ELSS Scheme for the past few years. However, we chose to wait until we attained a certain number of investors. Today, we are gratified that a little more than one lakh investors have chosen to invest in our flagship equity scheme, which we believe is a validation of our philosophy and approach to managing money. Consequently, we concluded that this was an opportune time to launch our ELSS," Neil Parag Parikh, Chairman and CEO, PPFAS Mutual Fund was quoted as saying in the statement.
A minimum of 80 per cent of the corpus of the new scheme will be invested in Indian equities or equity-related instruments. A maximum of 20 per cent will be invested in debt instruments and money market instruments.
( With inputs from IANS )