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,
May I know the investment benefits for tax saving fixed deposits,
a) Is the full amount exempted?
b) Do the interested received Taxable.
Kindly advice
Thanks,
Prasanth.
@Prasanth
Amount deposited into tax saving fixed deposits is exempted from income tax (under 80-C with max limit of 1 lakh). But Interest received on tax saving fixed deposit is taxable.
Hello Pankaj,
Need your expert advise again!! I have a 8 month old child and want to plan for his future needs. What are your thoughts on LIC's Child Career Plan? Are there any other plans available in the market? Awaiting your response.
Best Regards
Nagarajan
@Nagarajn
You should invest in diversified equity mutual funds or balanced funds.
Please don't go for any insurance or child plan ULIPs from insurance companies.
Hi Pankaj,
Thanks. Is there any specific reason why one shouldn't go for any insurance or child plan ULIPs from insurance companies.
Also please can you suggest / list out the diversified equity mutual funds or balanced funds to invest.
Best Regards
Nagarajan
@Nagarajan
In long term, equity or balanced mutual fund will generate better returns and they don't attract any extra charges for mortality and management.
You can choose among following equity mutual funds: Birla Sunlife Frontline equity fund, HDFC Top 200 Fund, DSP Blackrock Top 100 fund, Reliance Regular Savings – Equity,
ICICI Pru Discovery Fund, DSP Blackrock small and midcap fund.
In Balanced funds, you can pick from Reliance Regular Savings Balanced, HDFC Prudence and HDFC Children's Gift-Inv.
Many Thanks Pankaj. Can I invest Rs.10,000 monthly through SIP... lets say for 5 years. Should I choose dividend or growth? What percentage of money should be allocated in Equity, Small & Mid cap and Balanced fund. Please Advise.
Best Regards
Nagarajan
@Nagarajan
You can start monthly SIP for mutual fund investment.
Growth option is better for long term. You can divide your portfolio like:
1. 40% into large cap mutual funds
2. 20% into small and mid cap mutual funds.
3. 40% into Balanced funds.
In ELSS ,for long term is dividend option beneficial or Growth is beneficial ?.And are the ELSS scheme will don't get any tax benefit after 2012.
@Santosh
For ELSS, dividend reinvestment is better. Read more here about different options and their benefits: http://www.pankajbatra.com/finance/growth-dividend-payout-reinvestment-mutual-fund-investment-options/
Once direct tax code is implemented (from 1st April, 2012), income tax exemption on investment in tax saving mutual fund won't continue. Read more about direct tax code here: http://www.pankajbatra.com/india/new-direct-tax-code-dtc-highlights/
hi pankak, im looking for a short term MF (1yr) where in i can get max gauranteed returns... as i am planning to buy a house in a years time... want more financial investment plans fr a years time... so can you please help me??
@Rohan
You can invest in Bank fixed deposit for guaranteed returns at this point. Interest rates are pretty high so you can get benefit of that.
Other option can be Fixed maturity plan (FMP) mutual funds, whose taxation is better that fixed deposit but they cannot guarantee fixed returns (generally they give similar returns as fixed deposits)
and will it be a time investment or monthly?
as i cannot put much in a monthly plan can u suggest me a plan for a 1 time plan?! please
Dear sir,
Please tell me i want to save tax pls suggest me some tax saving mutual fund so that my tax deduction will be reduces it should come under 80c of income tax pls mail me the details
@Sunitha
You can invest in Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver or Fidelity Tax Advantage.
Hi Pankaj, after doing an analysis on my income,expenditureand savings, my financial advisor has advised me to invest as per below :-
Franklin India Taxshield Rs. 9000 SIP
HDFC Equity Fund Rs. 7500 SIP
Templeton India Growth Fund Rs.4500 SIP
Lumpsum of Rs.2.5 lakhs in HDFC Equity Fund
Lumpsum of Rs.1 lakh in Franklin India Flexicap Fund
What is your take on this for a long term perspective?
Regards,
Shanky
@Shanky
I won't advice you to put huge lump-sum amount into Equity mutual funds. You may put them into MIPs and start a STP (Systematic Transfer Plan) to equity based mutual funds.
Unless needed for tax saving purpose, avoid tax saving mutual fund.
HDFC Equity fund, Templeton India Growth Fund and Franklin India Flexicap Fund are good funds.
You may also consider adding Fidelity India Growth, HDFC Top 200, Franklin INdia prima plus, DSPBR Top 100 equity, Franklin India Bluechip and Reliance Regular Savings Equity.
Dear Sir,
I am sachiv singh ( age 24 years) and I want invest Rs. 5000.00 monthly in SIP and tell me about large cap mutual fund, mid cap mutual fund,and balanced fund( with name) . and also suggested me for percentage of amount invested in different funds.
@Sachiv
Large Cap Equity: DSPBR Top 100 equity and Franklin India Bluechip
Equity Large & Mid Cap: Fidelity India Growth, ICICI Pru Dynamic Inst, HDFC Top 200, Canara Robeco Equity Diversified and Franklin INdia prima plus
Equity Multi Cap: HDFC Equity, Templeton India Growth and HDFC Growth
Hybrid/Balanced Equity Oriented: Reliance Regular Savings Balanced, HDFC prudence, DSPBR Balanced, HDFC Balanced, HDFC Children's Gift and Birla Sunlife 95
You can split 2500, 1000 and 1500 into large cap, balanced and mid cap.