Best Income Tax Saving Mutual Funds

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• i hv registered for hdfc prudence through sip by a agent of eastern financiers ,kolkata
  after reading ur comment about extra charges debited by broker in disguise..i asked the agent about it ,bt he cd not clarify it in straight cut way
  cd u sggest me how sd i know abt it ?

  • @MJ
    Entry load has been abolished now on all mutual fund investments.
    Agents earn from commissions which mutual fund companies pays them for all investments made through them.
    Agents may also charge extra amount as service fees.
    If agent has not taken any extra amount other than SIP investment cheques, you need not to worry about same.

• Hi Pankaj,

  I am a Free lancer in Bangalore and service for mutual Fund Investments and Infrastructure bonds, I never ever recommend ULIPS.

  Your advices to customers are very good and informative, if Possible can I met with you for a chat ? Please reply, thanks

• Hi Pankaj..
  I m jay a s/w engineer...i hv a query that if i wil invest in a tax savin mutual fund on sip basis frm march2011-march 2012.shall i get tax benefit for the financial yr april2011 to 31st march 2012...after the introduction of DTC.

  thanx in advance.waitin 4 ur reply..

  • @Jay
    Direct tax code (DTC) will be applicable from 1st April, 2012. So you will get benefit of all investments into tax saver mutual funds done before that.

    Long term gain (kept for more than a year) from equity mutual funds are exempt from income tax, so there won't be any tax on profits earned from tax saver mutual funds.

    BTW, I am also a software engineer.

• one more thing i wld lik to ask for the investment to b made by me as said above frm march 2011 to march 2012.wil the profit frm such investment after 3yrs will b taxable or exempted..

• hi Pankaj,

  u seem to be my only hope, i am saving for the first time, i have only 30k to invest, i am looking at Best returns with No risk (also with a veiw to save tax). what should i invest in life insurance/ term plan/ fixed deposit/ recurring deposit/or sumthing else that i am missing or should i go for a combination. how should i distribute if you suggest to buy a combo.should i go for a long term or short term? if i devide my investment in various products will my returns diminish? if so then what should be my first priority? which brand/s should i buy?

  • @Nilesh
    If you are only looking for risk free returns, then Fixed deposits or PPF seems to be good option.
    Otherwise, you should get a Term insurance first and then invest rest into equity linked mutual funds.
    For term insurance, you can get LIC Amulya Jeevan or ICICI iProtect plan.
    For Equity linked mutual funds, you can choose to invest among Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver and Fidelity Tax Advantage.

    • Hi Pankaj,

      Can u pls suggest me...which one is better in between(ICICI pru tax plan and HDFC Tax saver plan)?..or should i go for any other tax saver plan?

      • @Souradeep
        HDFC tax saver plan is one of the best tax saving mutual fund. You may invest in that.

• Hi,
  I want to invest one time 10000 in any tax saving schem. Can you please advice?
  Thanks

  • @SS
    You can read answer to a similar query on tax savings here

• how an invester recieves dividend declared under dividend payout scheme

  • @MJ
    It can be directly paid in bank account (NEFT/RTGS), or by cheque/draft.
    It will be written on your mutual fund folio statement.

• Dear Pankaj,
  I had a question on SIPs. I am looking to invest Rs. 10k each month in a SIPs plan and on a long term basis (at least 5 years). Should I go for a tax-saving plan (e.g. HDFC tax saver) or a pure equity linked plan (e.g. Reliance Equity Opportunities). I wasn't sure about the first option as I have heard that capital gains and income from any investment of over three years is exempted from tax. If that's true than the equity linked plan does make sense, doesn't it?

  Would appreciate your response. Thank you.

  • @Dino
    Tax benefit in equity mutual fund investment won't be available after April, 2012, so does not make any sense to invest in tax savings mutual funds after that.
    So for coming financial year (2011-12), in case you want deduction under 80-C, you can start SIP for a year in equity linked tax saver mutual funds.

    If you are only looking for investment and not towards tax savings, then you should only go with equity mutual funds (non tax savers). You can start SIP in diversified equity mutual funds. If these funds are kept atleast for an year, its considered long term investment and there is no tax liability on selling.

• Hello Sir,
  You website is quite informative.
  Q.1. I want to Invest monthly in the following:
  i) HDFC TOP-200= Rs.1000/-
  ii)Reliance Growth= Rs.1000/-
  iii)Canara Reboco Tax Saver= Rs. 500/-
  iv) PPF Rs.2000/-
  v)RD Rs. 1000/-

  Is my strategy is correct?
  what should be the modifications I do?
  What should be my investment duration?

  I have already done LIC. I am married and a new member will come soon. My Salary is 30,000.

  Plz suggest me about the the fund selected and duration?
  Any other helpful info????????????

  Thanks in advance.

  • @Tutu
    Your selection seems good.
    You must invest in these for long term (more than 5 years atleast)

• Hiii Pankaj,

  My Self Rinkesh Vankawala.
  I have to invest 10000 per year up to only 1 or 2 years because of some personal work i will again need money with high return so how to invest proper way .Please guide me the same.

  • @Rinkesh
    For short term duration like 1 to 2 years, you can invest into FMP (Fixed Maturity Plans) mutual funds.

    • Pankaj,
      I am planning to take home loan around 25 - 30 lak, please let me know which bank providing low interest rates and which is the best one

      Thanks in advance,
      Ram

      • @Babu
        You can try from SBI or LIC.