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,
i want to invest into liquid mutual funds (short term for one month). i went through your article on investing in liquid mutual funds posted an year back. Is the market condition safe now to invest in those listed liquid mutual fund?
i am planning to invest around 20,000 for a month. How returns on an average it would yield?
@Chaithra
Liquid mutual funds do not invest into equities, so mostly does not have much impact of market conditions.
Investment into these funds are always safe and linked to market interest rates. As interest rates are increasing. These will also give you somewhere around 6-7% annual return.
Hi Pankaj,
I invested in Reliance ELSS tax saver fund. Is it good?Bit confused...Thanks in advance!!
@Aman
Don't worry, Reliance ELSS tax saver is a good fund.
Hi Pankaj,
I read in Initial comment that it not a right time to invest in Mutual fund as market is on high and chances of getting correction, pleas tell me where to invest as I need to do investment as I need to take tax benefits.?
@Vivek
You can invest in Mutual funds right now as well but make sure you do it through SIPs so that cost of acquisition is evenly spread.
Rather that investing whole amount in one go (lump-sum) try to invest monthly.
Dear Pankaj,
I read the Newppaper articles that FMPs are better than FDs & Tax efficient too.
Does that mean we can invest in FMPs to take advantage of clause 80C? What are the average returns on FMP, how they operate & what are good FMP offerings currently in Market.
Thank you in advance.
@Purshottam
Yes, FMPs are better than bank fixed deposits.
But tax saving advantage is not available for these under 80C.
Returns are generally better but not guaranteed like as in FDs. They are closed ended scheme and you can only invest for a specific period of time when they open.
There are many schemes being launched now.
@Pankaj
How FMPs operate. Do they invest in Equities or Debt Market? What is best FMP offering so far & how much is the return?
Thanx.
@Purshottam
They invest in Debt market.
As I said earlier you cannot invest in past schemes as FMP are closed ended schemes. You can track which funds are open on this page: http://www.moneycontrol.com/mutual-funds/new-fund-offers
And return is not fixed and not declared at the scheme launch.
I want to invest Rs.50,000/- in Tax Saver Mutual Fund. Can you please suggest me a good Mutual Fund to Invest in? and also whether it is good to invest a lumpsum amount in Mutual Fund as markets are high right now.
@Rahul
Its not advisable to invest in lumpsum in mutual funds at this point. A correction may eat your investment to an extent in near future.
Still you have some time left in this financial year. Split amount in 4 parts and invest each month, say on 25th.
Good funds for investment are Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver and Fidelity Tax Advantage.
Hi Pankaj,
At first i thank you for giving good suggestions to us. Regarding me, I have to invest 75,000/- against tax savings. Could you please how can i invest. Another thing is it is gud to go for child investment plans, asking this as i hv a baby gal of 10 months old.
@Sreelatha
Regarding tax saving, I would advise you to split the investment into Term insurance, PPF, Tax saving mutual funds, medical insurance and NPS (new pension scheme).
Rather than child investment plans from insurance companies, better invest in balanced mutual funds regularly, they will be better in long term.
Hi Pankaj,
As per your advice previously i have started HDFC Taxsaver SIP from Aug-10 to July-11. But i heard that we can use ELSS till March-12. Please tell is there any option to extent the sip till March-12?
Thanks in Advance. Thanks for your very useful informations.
@Mothilal
From 1st April, 2012, direct tax code will be applicable which will remove tax exemption from many investment schemes like mutual funds, ULIP etc. Read more details about direct tax code here: http://www.pankajbatra.com/india/new-direct-tax-code-dtc-highlights/
You may invest till March 2012 in ELSS without any issue.
Hi Pankaj,
I have taken a home loan this year. Now wanted to secure this home with home insurance. Please advise the best ways I can do. Also I heard that LIC Jeevan Anand has a home insurance cum pension scheme. Is it true? Whats the best Pension Scheme? Thanks and Happy New Year to you.
Jay
@Jay
Best way to secure your family against your liabilities is to get a Term insurance. One must have insurance of at-least 8-10 times his/her annual income.
Apart from home loan, it will also protect your family against any unforeseen incident even after home loan full payment as well.
Jeevan anand is neither an home insurance nor a pension scheme. Its an endowment plan, Read more here: http://www.licindia.in/endowment_005_features.htm
Dear Pankaj Sir,
I invest Rs.15000/- in tax saving mutual fund which fund is suitable for me.
Thanking you.
@Amit
you may choose to invest from the following funds: Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver and Fidelity Tax Advantage