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,
According to your advice,If i invest into Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver or Fidelity Tax Advantage for 5years.Is rate of interest taxable.?
@Biswajit
Long term gains (earned from equity based investments which are kept for atleast more than a year) are non taxable.
So there would not be any income tax on gains from tax saver mutual funds as they already have three year's lock-in.
Hello Sir,
First of all thanks for your such a great assistance to an open forum.
I am really impressed of your views and like to know your views regarding following portfolio.
Please recommend if I need to back off from any of these and to dip into any other fund of different company
DSP Blackrock top 100 - 2000pm
DSP Blackrock Equity - 2000pm
DSP Blackrock Microcap - 2000pm
DSP Taxsaver Fund - 2000pm
Please advice.
Siddharth
@Siddharth
All funds selected by you are good.
However, you may considering replacing DSPBR Microcap with IDFC Premier Equity, ICICI Pru discovery Inst I or Birla sunlife Dividend yield plus.
Hi Pankaj,
I am Neha and new to savings. Can you advise me is SIP in better than a mutual fund. I want to invest 8 to 10K a month for 2 to 3 years. I would want to save tax as well. Kindly suggest a few options.
@Neha
SIP is mode of investment in Mutual funds, where rather than investing lump-sum amount, an amount is invested every month for a longer period (minimum 6 months).
SIP investment is better than lump-sum investment as it averages out cost of buying and therefore is less risky than lump-sum.
Tax saving mutual funds will only be available for this financial year (Till March 2012) as after that due to Direct tax code, there won't be any 80-C deduction on mutual fund investment.
For this year, you can invest into Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver or Fidelity Tax Advantage.
Hi Pankaj,
Does this means if I invest in Mutual Fund next year, I cannot show it for tax saving.
Please advice.
Thanks,
Shilpa
@Shilpa
If you invest in mutual funds after 31st March, 2012, there won't be any tax deduction available for them.
Hi Pankaj,
I am currently investing in One SIP i.e HDFC tope 200 @ 3000 Rs permonth, i would like to open two more SIP's for 3000 each. Please suggest to me accordingly.
Rgd,
Shashaank
@Shashaank
Mutual funds selection depends on one's need and risk appetite.
Please go through following posts:
http://www.socialfinance.in/questions/911/pgolla-need-best-suitable-mutual-funds-to-invest-large-amounts
http://www.socialfinance.in/questions/1607/mutual-fund-investment-and-sip
It will surely help you in finding right fund.
Adding to the above query, i have shortlisted some fund :-
HDFC midcap oppertunity fund
Sunadaram select midcap
Franklin India index fund
Birla sun life frontline
DSP black Rock top 100 equity
Franklin india blue chip
my goal is to make a total of 5 SIP for 3000 rs each every month for a period of 15 years. How much can i expect at maturity.
Hi Pankaj,
Can you please suggest me which is the best Mutual fund (ULIP or ELSS) which will give relatively maximum returns and also it should serve the purpose of tax saving ?
I came across the following fund- "Canara Robeco Equity Tax Saver Fund - Growth"
Basically I'm looking for tax saving and it should give me good returns.
Thanks in Advance.
With Best Regards,
Nagesh
@Nagesh
Canara Robeco is a good fund and you can invest in it for tax saving.
Pankaj,
Thank you very much for the reply.
Will it be valid investment once DTC comes into picture. Can you please let me know.
If it is invalid can you please let me know which is the best for investment and tax saving ?
Thanks in Advance,
Regards,
Nagesh
@Nagesh
Tax saving mutual funds will be available for tax benefits only this financial year (till march 2012). After that Direct tax code will come into force in which many of the tax saving avenues have been removed.
Best option for investment for tax saving after direct tax code will be New pension scheme and PPF. Also if you have not taken, consider buying a term insurance.
Hi Pankaj,
Can you suggest me the best mutual fund for tax saver with high return.
@Sumit
You can choose among Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver and Fidelity Tax Advantage.
Returns are not guaranteed and past performance may not be repeated in future.
Hi Pankaj,
Can you pls. tell me how I invest in Mutual fund (i.e. what are the steps to be followed).
@Sumit
Please read answer to a similar query on following page: http://www.socialfinance.in/questions/1786/how-to-open-a-systematic-investment-plan
Hi
I have around 1lac that i would like to make a one time investment of
I know this is only a thread on mutual funds but if you could advise how to plan this investment spread over efts ormutual funds or fixed deposits or PPF as options
Also I have invested alread 2000 rs each in HDFC top 200 and Fidelity Equity Are these tax saving funds?
@Ronette
You can invest amount based on your needs.
If you need this amount back within next 1-2 years, you can invest into fixed deposits or fixed maturity plan (FMP) mutal funds.
If you want to invest for long term, you can invest into liquid/debt mutual fund and start a systematic transfer plan (STP) to equity based mutual funds.
HDFC Top 200 and Fidelity equity are not tax saving mutual funds.
Hi Pankaj,
Its good to see your support for all these Issues. I would like to know about ELSS and any good way to invest 25 to 30 k in Mutuals Funds, with the idea of tax saving. Detalis about perticular plans as well. Thanks, Yamini
@Yamini
You may choose to invest among mutual funds like Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver and Fidelity Tax Advantage.
Hi Pankaj,
Thanks for the advice,i am little concern about returnslike suppose i m investing 30000 in 3 years than what is the benifit i m getting after 3 years, any other options then mutual funds which will give some good returns plus tax savings will also work, so hoping for other suggestions are welcome, Thanks once again and in advance, Yamini
@Yamini
Returns in mutual funds are not fixed. These are riskier in nature and may give very good or very bad returns.
If you are concerned about fixed returns, I would advise you to invest into tax saving fixed deposits for five years. At this time, bank are offering around 9.5% rate of interest on such investments. But one thing to note that, interest on these are also taxable and TDS would be deducted by bank.