Best Income Tax Saving Mutual Funds

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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Pankaj Batra

Jack of multiple trades. A generalist! Founder of Sparse Labs. Find me at FB, Twitter or LinkedIn .

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  • is the sundaram pnbparibas tax saver fund is good for investing to the tune of 25k kindly suggest the best one services are not responsive i am confused to invest in this or not

  • Indeed a good article.
    I’m a little confused over investing in BNB Paribas Tax saver and Canara robeco.. which one would be wise investment for high dividend and currently i would invest lump-sum ~40k.

  • Hi Pankaj,
    What is your idea about investing in PPF(wherin lockin period is 15 years), I found found investing in PPF better than ELSS/ULIP, Kindly advice, It is for tax saving and 100% security(upto 70K is exempted under PPF p.a).
    Warm Regards,
    MP Narayanan

    • @M P Narayanan
      Investing in PPF is very safe and it has guaranteed returns.
      Depending on one's risk appetite, ELSS or PPF must be chosen.
      If you are young, you should choose ELSS as in longer term they beat PPF (whose return is fixed at 8.5% p.a.). Also it has only 3 years lockin (compared to 15 years of PPF), one can take out money after 3 years if required.

  • I am planning for health insurance, Just saw a policy ICICI health saver. Can you please suggest some good health insurance policy. My age is 29.

  • I am 24 years and wanted to invest in mutual funds ..
    Which are good mutual funds with least risks ?
    I was also considering investing in SIP'S ??

    • @Rohan
      There are different types of mutual funds available, for which you can apply thru SIP.
      All equity linked mutual funds carry a risk and dependant on market performance.
      If you don't want risk, you can invest in debt funds which have lower return but no risk.

  • Hi pankaj ...
    i m asha....my bf salary is 42k per month but we want to make tax saving dont hv any idea how to do it....i only know dat uder sec 80c we can save tax on investing in ELSS,PPF,life insurance,medi insurance etc...we want to knw if we want to invest 50k for tax saving then in whch way we shld divide it in ELSS,Insurance????
    he dont hv any kind of insurance too....he has only medi insurance provided by his employer ...shall he opt for another medi insurance personally???

    Again we are planning to marry after 1.5 yrs for marriage we need money....plz suggest anyway through which we can invest n get good returns after a period of 1 or1.5yrs..since time period is short i think debt funds or maturity plans avoiding risk wld be better still i want ur suggestions...if yes den whch debt funds would b profitable plz suggest....

    eagerly waiting for ur reply........

    • @Asha
      First of all get term insurance for around 40 Lakhs and a family floater medical insurance for around 4-5 Lakhs.
      After these investments, you can invest remaining amount into ELSS Mutual fund and PPF with a ratio of 80-20.

      Apart from tax savings investment, if you need to invest for short term (1-2 years), you may invest in MIP mutual funds like HDFC Monthly income plan, Birla Sunlife MIP etc. You may also choose to invest in company fixed deposits but check ICRA or CRISIL rating of them before investing.

  • HI .... I HAVE SHORT LISTED BIRLA SUNLIFE TAX RELEIF FUND FOR TAX SAVING AS ITS NAV IS LOW .....
    KINDLY COMMENT ON MY CHOICE .....
    AND WHY IS ITS NAV SO LOW , WHEN ALL OTHERS ARE DOING GOOD ....

    • @Sunny
      Birla sunlife tax relief fund is a good fund, you may invest in that.
      Birla sunlife tax relief fund has high NAV in dividend mode (more than 80 Rs), whereas the growth fund has recently started so has a low NAV.

  • Hi Pankaj,
    I am planning to invest around 70K in Tax savings MFs.
    I have decided SBI , HDFC, Sundaram and Birla Sunlife. I will opt for 2 funds out of 4.
    Pls suggest top 2 funds.or any funds as per your consideration
    Also help me out which type i should go whether growth or dividend for 2 top funds from list.

  • Hi Pankaj,
    Plz suggest top 2 good ELSS mutual funds for taxsaving n top 2-3 MIP mutual funds in whch we should invest....

    • @Asha
      You can go for HDFC Tax saver and Franklin india tax shield in tax saver
      For MIP, you can invest in HDFC Monthly income plan and Birla Sunlife MIP .

  • Hi

    I am 25 years old planning to purchase 2 mutual funds both of 10000 each and want to invest 20000 In LIC wealth plus plan but in dilemma as which one to purchase.
    I am planning to invest 10000 in tax saving fund and other in any good fund which can fetch me good growth.

    My doubt is whether to go ahead with birla tax 96 growth or not and not sure about entry and exit load they charge .

    Is it same to go ahead with bajaj capital to purchase MF or should i directly approach Birla Advisor

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