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...I am looking to invest around 1Lac so tat I get tax exemption. So could you please suggest how I can split it into various things(MF, PPF, Pension plan etc) and also some of the best plan in each category.
@Shyam
Split depends on your age. Younger you are, more risk you can take, so more money can be invested in somewhat risky avenues.
First of all get a term insurance in case you already have not taken. Keep sum insured around 80-100 times your monthly salary. LIC amulya jeevan or Max new york pure term are some good examples.
Then get a Family floater medical insurance for sum insured around 2-3 lakhs minimum. you can get it from Max Bupa, Apollo Munich or Star Health etc.
After that put remaining amount in PPF and ELSS mutual funds in a ratio proportionate to your age. If Below 30 years, make it 70% ELSS and 30% PPF. With each year older, keep moving 2% from ELSS to PPF. i.e. if you are 50% years older, 30% ELSS and 70% PPF.
Also you may invest into Bank FD (5 years) in spite of PPF, in case you need money after sometime.
There is an additional 20,000 saving you can do above the one lakh limit. This has to be invested in infrastructure bonds.
for future investment perpose and good returns. Gold coin is good or mutual funds is good. Could you suggest which mutual fund is good for better returns? Pls send me my reply on my email Id
@Rupal
You must divide investment into equity mutual funds and Gold ETFs.
For equity MFs, you can invest in HDFC Top 200 Fund, Birla Sunlife Frontline equity fund, DSP Backrock Top 100 fund and HDFC Equity Fund
Hi Pankaj,
Great information available. I have some money lying idle. I would like to invest in ELSS in the name of my college going son and myself. Below Rs 50000 per fund I am told is hassle free. For a lock in period of 3 years which are the funds I should be investing in to save tax. The DTC will not affect me if taken no isnt it? I am looking to invest about Rs 200,000 directly from the companies to avoid brokerage. Also wish for zero entry and exit load.Please advise as to the best ELSS. to save tax.
Thanks
@Siddharth
You can invest in Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver or Fidelity Tax Advantage. Make sure to invest in Dividend Re-invest option.
DTC will be applicable from April, 2012. So as of now no effect of that.
Its good that you want to invest directly to AMC. Below posts will also be helpful to you:
1. Mutual Fund Investment with zero entry load
2. How to transact in Mutual Funds online
3. Best way to apply in mutual funds
Also, Make sure to read this before applying in your son's name: From November 15, No third-party cheques allowed for mutual fund investments
Got It Pankaj. Thanks
Is there an upper limit as to the amount one can invest in several ELSS in a year? I intend to put 49000 in 3-4 ELSS for this year..which is the saving of my last year returns after paying IT.. is that okay?
@Siddharth
There is no limit of number of ELSS funds and amount you invest into.
Which funds are better for short term investments which give better returns . I mean apart from Tax benefit funds.
1.FD gives 8% which is traditional way of investment I want something more than 8% for period of 12 to 18 months. kindly suggest
@Poo
You can invest in company Fixed deposits and debentures. e.g. Shriram Finance, Muthoot group schemes.
These can give you 10-11% annual return. But make sure you check their CRISIL (Credit Rating and Information Services of India Ltd.) ratings before investment.
Hiiii,
How's Sundaram BNP Paribas SMILE Fund? Is it doing good?
@Poo
Sundaram SMILE is one of the best rated funds.
i just read the questions and answers. i just feel very good the way questions are answered by pankaj. Very patiently, that too free of cost...
@Rajan
Thanks for appreciation :)
Very useful info being imparted by Pankaj espeacially for the beginners in the field of investments. Keep the good work going pankaj ! Cheers
@Vlaskshman
Thanks for appreciation :)
Hi Pankaj,
My friend planning to Invest in LIC Mutual fund, Is it good one? Which plan under this is doing good?.Any idea? Please suggest.
@Poornima
Which fund you are asking about? LIC mutual fund has so many schemes in Debt/Equity/Tax savings.
Hi,
I had been to HDFC bank to invest in HDFC TAX saver mutual Fund, But then
I heard tax saving mutual funds returns are taxable. Is tat true? We actually invest in mutual fund (TAX SAVER One's) because we dnt want to pay tax. If returns are also traxable then how does it help? Is the news true? are the returns really taxable?
@Poornima
Even after DTC (Direct tax code) implementation, long term capital gains from equity based investments (on which STT is paid) will be non-taxable and equity tax saver mutual funds also come under that category.
So if you buy now, returns won't be taxable after 3 years, if you decide to sell.
Hai! Pankaj,
What do you suggest, i.e to go for SIP or One time Investment for Tax Saver Mutaul Fund. And also suggest which one will be better, HDFC Tax saver or Reliance Tax saver
@Pawan
It will be better to go with SIP as it averages out cost of buying.
Out of the two funds specified by you, HDFC tax saver is definitely better.
Pankaj, Plase let me know the best Infrastrcture Bonds as of now available which are come under 80ccf.
Thanks,
Rambabu
@Mothi
The entities like LlC, IDFC, IFCI and other NBFCs which are classified as Infrastructure Finance Companies by RBI shall be allowed to issue these long term infrastructure bonds.
The bonds shall be compulsorily issued in Demat mode, so investors without Demat A/c shall not be eligible. Maximum benefit to an investor shall be Rs. 20,000/- under section 80CCF of the Income Tax Act, 1942.
As of now, only IDFC Bonds are out for investment (Closing date is 18th Oct, 2010). The Tenure of these bonds shall be 10 years and the bonds have a lock-in of 5 years