I compared ELSS (Equity Linked Saving Scheme) mutual funds on the basis of their AUM (assets under management) size and past performance in 6 months, 1 year, 2 years and 3 years.
Finally following funds were found to be good.
Canara Robeco Equity Tax Saver, Sundaram BNP Paribas Taxsaver, HDFC Taxsaver, SBI Magnum Tax Gain Scheme 93 – Dividend, Franklin India Taxshield – Growth, DSPBR Tax Saver, Fidelity Tax Advantage
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Hi Pankaj,
I want to invest 1Lac in Axis tax saver fund, (which is now Axis Long term equity fund) for tax saving purpose. Could you suggest if my choice for the fund is correct? As I have analysed the fund, it has given good returns in last 6 months…..
Also plz advice, is it a good decision to invest in NFOs for tax saving fund? Currently Union KBC tax saver fund is open…..
@Saurabh
Please compare fund performance for a longer period (5,3,1 year) too. If a fund has been among top in all these years, select that fund.
Don’t go with a NFO at this point.
Some of the best performing funds in tax saving category are: Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver and Fidelity Tax Advantage.
Pankaj,
Can you please best infrastructure bonds to buy?
Thanks
@Ram
There is not much difference among bonds offered by different companies like IDFC, L&T, PFC, IFCI etc.
You should pick only one with maximum rate of interest.
As of now, issues for L&T and IDFC are open with both offering 9% rate of interest.
Hi pankaj,
My Salary package per annum is 364000 …
I have already invested 10,000 in Fidelity Mutual fund and i have started SIP for 6 months from nov – april (monthly 5,000) in Canara Robeco Tax Saving Mutual Fund.
Total investment in Tax Saving Mutual fund is 40,000.
I have opted for LIC Jeevan anand last year 25000 each year. til now i paid 50000 in LIC.
Still i thought of to invest 15000 in some MutualFunds or bonds or NSC or PPF or FD.
Kindly advise me which one shud i prefer and also shall i continue with LIC or i quit LIC and opt for Term Insurance.
Thanks in advance,
Regards,
Silambarasan
@Silambarasan
Its not a good idea to buy insurance policies for investment needs. Insurance and investment should be kept separate.
As you already have invested in equities for long term through tax saver mutual funds, I would advise you to either invest in PPF or get a pure term insurance.
Thanks pankaj.. shall i quit jeevan anand insurance and opt for pure term insurance or shall i continue wid jeevan anand
@Silambarasan
Jeevan anand is not a good policy from insurance perspective. If you are ready to suffer loss for already paid premium, you can quit Jeevan Anand.
There won’t be much amount returned in case you decide to quit this policy now.
You must take term insurance for sure, with or without Jeevan Anand thats your call.
Hi Pankaj,
i am 24 yrs old and earning a little over 5 lpa. i need to invest 1lac to save tax. now as far as i know, i could invest in ppf, nsc fd or elss for tax exemption undr section 80c. since i am young, my risk apetite is between average and aggressive. thus, i thought to invest in elss for two reasons:1- least lock in period of 3 yrs, 2- income from these funds is tax exempted too as apposed to interest from fd and nsc. please suggest that if my decision is correct or not. specially when the global economic scenario is not very encouraging and the markets might further go down in recent years to come and thus i might loose in elss as it is equity related.
also which elss schemes should i invest into?
we all here really appreciate your guidance in the issues of utmost importance. thanks in advance!
ASHISH
@Ashish
You decision of investing into ELSS is good.
If you choose to invest for long term, equity would generally give better returns (after tax) from other forms of investment.
Don’t pull out investment after three years, unless you really need that amount and keep it invested even after lock-in period is over.
ELSS won’t be available for tax saving from next financial year, so you have only three months to invest into tax saving mutual funds.
if you choose to stay invested for long period 5-6 years, current market conditions should not be a worry.
You can pick from Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver and Fidelity Tax Advantage.
Hi Pankaj,
I need to show 1 lakh for tax savings by feb 1st week. In the earlier years, I already invested in the funds suggested by you in previous years. I started investing from last 3 years 25k on each policy mentioned below:
2009 – SBI Life insurance (ULIP), SBI Magnum Tax Gain Scheme 93 – Growth, Sundaram BNP Paribas Tax Saver (Open-Ended) – Growth
2010 – SBI Life insurenace (ULIP), HDFC TaxSaver – Growth, Canara Robeco Equity Tax Saver – Growth
2011 – SBI Life insurenace (ULIP), DSP BlackRock Micro-Cap Fund – Growth, Fidelity Tax Advantage Fund – Growth
I am in a confusion, on what should I show the savings this year. Please suggest me how should I go ahead.
Thanks,
Sreelatha.
@Sreelatha
You can invest into tax saving mutual funds (Canara Robeco, HDFC, Fidelity or Franklin), PPF, NPS or buy a term insurance now.