in Finance, Income Tax, Investment, Mutual Funds

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

Facebook Comments

Write a Comment



  1. Hi Pankaj,

    Last year I started the policy of HDFC SLIC Young Star Super Premium with yearly amount of Rs 50,000/-. Is the insurance policy good enough for long term?? or should I go for pure insurance like LIC?? As you said DTC would in force from next year, pl suggest me best investment plan w/ Tax Saving as well as insurance, I get annual pkg of 9 lac. If i discontinue my HDFC SLIC policy how much money will I get from Rs 50000/- paid already?? My next yearly installment is due in next month (Aug 12)


    • @Rajesh
      No insurance policy is good from investment perspective. You should only buy pure term insurance policy.
      Please contact HDFC life for surrender value of your SLIC policy.

      Regarding tax saving investment plan, pure term insurance, PPF, NPS, tax saving equity mutual fund and tax saving fixed deposits are good to invest for tax saving purpose.

  2. Pankaj ji,
    My wife is salaried getting 18000/- per month and pf being cut and deposited regularly.
    We need to invest to get a 80 c deduction for her . please advice.WE have a family mediclaim of 5 lkhs, inv. in property , shares , etc. My file is within 8-10 lakh gross having rental , business , commission income . i take 80 c deduction from tution fees. We have a son 10 yr old. Pl advice on investment options considering family structure.

  3. Hi Pankaj,

    First of all woud like to appreciate your Blog awesome work

    I am 27 years of age drawing 30k a month
    Since i am unmarried I have lesser finacial commitments

    I Have investments in

    1) jeevan anand policy 5 lakh which i pay 20k annually
    2) 2 mutual funds of 2k eack each monthly in HDFC Top 200 G and L& T Mutual Fund (Earlier Fidelity Equity Growth)
    3) I invest in shares also 2500 a month ( long term and also additionally intraday)

    Would like your advice on
    1) a good term plan which will give me a coverage of 50 lakhs across say 35-40 yrs with riders of accident etc
    2) Health Insurance with family Floater (parents are Senior Citizens)
    3) what is better gold etf or gold mutual funds?
    4)what other mutual funds can i invest in?

    Thanks In advance

    • @Rhea
      Comments on your investments:
      1. Buying non-term plan insurances is not a good idea from both insurance and investment perspective. But as you have already bought Jeevan Anand, if you are getting amount back, you can stop this policy. Instead buy a pure online term insurance plan for sum assured atleast 50 lakhs, it should not cost more than 8-9000 per year. ICICI iCare and HDFC Click2Protect are some of the best plans in market, but they have 30 years maximum coverage only. You may also wait till you are turned 30 and buy these as you would be atleast covered till 60 years of age.
      2. HDFC Top 200 is good fund and you can continue SIP in same. As Fidelity has been taken over by L&T, it may not be as good in future, so you can stop SIP in it and start into a large cap fund like DSPBR Top 100 equity, Franklin India Bluechip or ICICI Pru top 100.
      3. If you have time and knowledge to invest in stocks, then only do that. Instead follow safer path like mutual funds or ETFs.

      Answers to your questions:
      1. Already covered in point one above.
      2. You can buy appollo munich or max bupa medical insurance. Your parents may not be covered with you under family floater policy under most of the plans, so you can buy separate plan for them.
      3. Gold ETFs are better than gold mutual fund in terms of expense charges.
      4. Apart from funds suggested in point 2 above, You can choose to invest into HDFC Equity or ICICI Pru discovery funds.

  4. Hi pankaj,

    I have health insurance from my company which covers entire family. Do you suggest me to buy anothe health insurance family floater for the entire family.
    My health insurance donot cover any dental treatment? Can you suggest good health insurance policy with affordable premium?

    • @Vicky
      Its always advisable to get a separate policy too other than what employer offer.
      In between jobs you may have a period when you don’t have policy cover and you may need insurance in those times.
      Also, if you buy policy yourself, you may be able to renew same lifelong. But in case of employer provided policy, after retirement you may face huge premium policies or some insurer may deny policy.
      You may pick from Apollo Munich or Max Bupa.

  5. I have term policy from ICICI Pru which i bought online. When i compare the policy from other companies, my premium is little bit lower by 2k which i am paying to ICICI currently. Do u suggest me to switch the term insurance to other company or stay with ICICI Pru?

    • @Vicky
      Insurance is a competitive market and there may be new players who may offer less premium rates.
      I would advise you to go with a bigger, older and stable player. ICICI, HDFC and LIC would be good ones to pick from.
      If others from this list are providing same cover for less premium, you can switch to that.

    • @S.Ramamoorthy
      Tax deduction for ELSS mutual funds u/s 80C can only be taken in year in which funds are bought.
      In case you invested in dividend reinvestment mode of mutual fund and some units were allocated in FY 2012-13 for dividend, you can claim deduction for these units and corresponding purchase value.

  6. Hi Pankaj,
    I have a daughter 3 years old i want to do a investment for her education in which she can get funds when she turns 16.Please suggest best option can invest upto 5,000/month.

    • @Ajay
      You should start investing into a mix of equity diversified mutual funds and PPF for her future.
      And, please don’t buy any insurance policy for this need.
      Also, get your family covered by a online term insurance, if not already done.

  7. dear sir, i want to invest in mutual fund rs20,000 for tax saving and 20000 for my child. pls guide me to select mf scheme. is uti ccb (g) and elss is good or any other fund in which entry load and exp. ratio. is less.

  8. Hello Sir,
    I have invested 60k in ELSS scheme under my name.can my wife declare it under section 80C?as i have not.if no, googled and it and can be done if i file the IT return as HUF.can you plz help me out as what are the other options where my wife can claim for this deduction?


  9. Dear Sir,

    I have a Axis Midcap mutual fund from Feb 2015. I am investing SIP 2000/- per month
    Is this fund tax saving of not???