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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Thanks for ur early comments.Dividend option better or Growth option are better for SIP investment in any Mutual fund.
Hi Pankaj....
This is the first time m goin for tax planning...jst wanted to know as to which option is better in tax saving mutual fund- lumpsum or SIP?? I guess SIP has a disadvantage that amount invested in 1st month will be withdrawable in 36th month,2nd in 37th ,3rd in 38th..... nd it boils down to an effective lock-in of 6 years instead of 3 years..
Than
@Neha
SIP is better than lumpsum investment, as it also averages out cost of buying.
Lets say, you invest now in lumpsum and market goes down then your whole investment will suffer. Whereas in case of SIP, some of your units will be bought at higher price and some at lower price, thus averages cost.
And regarding 6 years, start an SIP for one year only, so max period will be 4 years.
Hi Pankaj,
What would be your ideal suggestion for investment at 20k sensex, purely for tax saving purpose!
@Mohit
SIP into ELSS mutual funds.
Hey Pankaj...thnkss for such a prompt response.....one more querry....
wats d minimum tenure tax saving mutual fund SIP ..6 months or 1 year for :
HDFC TAX SAVER
CANERA ROBECCO TAX SAVER
RELIANCE TAX SAVER
@Neha
Minimum SIP period for these funds is 6 months.
Hey, i had purchased a mutul fun in the month of march if i want to withdraw it how much penalty would i pay...
@Rohan
There is a lock-in on tax saving mutual funds for 3 years. You won't be able to withdraw it before 3 years.
Is it right time to invest about 15,000 INR in HDFC Long Term Advantage Fund (G). Pls suggest few ELSS funds where I can invest.
@Sudip
As market was good for last 9-10 months, HDFC long term advantage fund too have gained a lot.
There are chances of correction in near future, which may put investment in loss for short term.
Its better that you wait for some correction or invest through SIP.
Some of the other good funds are Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver and Fidelity Tax Advantage.
Dear Pankaj,
Thanks for your suggestion.
Regards,
Sudip
Hi Pankaj,
I wanted to invest in SIPs. Per my understanding I cannot claim tax benefit if I invest in SIP. Am I correct ?
Also, please suggest me 3 SIPs that I can invest in now. I m looking at a period of 3 years.
-Regards,
Preet.
@Preet
You can claim tax benefit even if you invest in SIP, but it has to be in tax saving mutual funds (ELSS)
You may choose to invest among Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield - Growth, DSPBR Tax Saver and Fidelity Tax Advantage
Hi pankaj,
I want to Invest around 35K in Tax saving mutual funds,Which mutual fund is best to invest in the last week of december.Frm last 3 yrs i am investing in SBI magnum tax gain (G),Is it better to reinvest in the same MF or any other is better one?
Thanks,
Ram
@Ram
Its not advisable to invest into mutual funds as lump-sum. Better is to invest through SIP route.
As market is on high, there are chances of further correction, which may erode your investment in near future.
You may choose to invest into mutual funds among Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield - Growth, DSPBR Tax Saver and Fidelity Tax Advantage
Hi Pankaj,
I wanted to go for a Child Plan that covers for my Child Education. Here, I want to save taxex von the invsetment and I am also lookin for good returns. Can you suggets me something. I heard that the best plans are that which have a low Premium allocation Charges. Is it true ? How is Aegon Religare as a Child Plan ?
@Preet
I don't think, Child education plans from insurance companies are correct ones for children future. So I won't advise you to put money into child education insurance plans.
There is no need of a insurance component in child plans. Insurance is an expense and not an investment. Moreover, most of the child plans are ULIP based and have bad load structures.
Its better to invest in mutual funds and PPF. There are mutual funds (mostly balanced funds) available that focus on long term children needs. You may consider good funds like HDFC Children`s Gift Fund and Prudential ICICI Child Care Plan.