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,
Happy New Year 2010 !
I went through your articles & posts. Information on this site is excellent. I would recommend anyone new to investments to go thr’ your posts.
I have few queries on the below investments made by me for tax saving purpose.
Bajaj -Century Plus -25 K / Annum( Asset Allocation Fund)
Bajaj -unitgain Plus Gold size one -12k annually( equity Index Fund II) -ECS
Bajaj – Family Gain -12k/ annum (equity Index fund II)
Bajaj – Health Guard -1.7 k / annum
I checked the current value of these policies, i don’t see any growth in the current Value.
Century Plus premium is paid only once in Jan 2008. Premium of 2009 is not paid , now the policy is in the lapse status. Current Value of this policy is 23.k against 25 K invested .
1.Kindly suggest if it is wise to pay premium for Century Plus in this Jan.
2.Do you think i need to switch funds to earn better returns or continue in the same . If yes, suggest the right fund
3.I have another 40 K ( including that of 25 K premium of Century )to invest for tax saving , can you suggest an ideal investment .
Thank you for your time. Look forward to your expert opinion.
Regards,
Anita
@Anita
I don’t know why you have all of your investment with Bajaj. There are many good funds in market from Birla, HDFC, DSP, Franklin etc. You should consider investing in funds which have proven records.
Ideal investment for tax savings is 1. Term insurance 2. Medical insurance 3. PPF 4. ELSS Mutual Fund.
You must divide your amount among this.
Hi Pankaj,
Thank you very nuch for the reply. I would surely consider your suggestions while investing further.
‘Thanks & regards,
Anita
Hi Pankaj,
As you mentioned Ideal investment for tax savings is 1. Term insurance 2. Medical insurance 3. PPF 4. ELSS Mutual Fund.
How should the investment be distributed among these options?
Please suggest some good Term insurance and Medical insurance policies.
Thanks,
Prasad
@Prasad
First get term and medical insurance for a good insured amount based on your lifestyle and age.
After that, divide remaining amount between PPF and ELSS in ratio based on your age. More the age, increase the PPF share.
You can get term insurance from LIC (Amulya Jeevan), Max new york life or Metlife. For medical insurance you can get from Star Health, Apollo DKV or any Govt insurance company like national or united insurance.
Hi Dear,
I am interested to invest in ELSS, so please assist me which plan is better running now and also in future
@Dinesh
You can invest in following funds:
Sundaram BNP Paribas Taxsaver, SBI Magnum Tax Gain Scheme 93, Franklin India Taxshield, HDFC Tax saver, Birla Sunlife Tax relief, ICICI Pru Tax plan, Fidelity Tax Advantage
Hi Pankaj
I have to invest 41000 Rs to save tax.
Below is my plant to invest, please suggest
12000- LIC Jeevan Saral
10000- Fidelity Tax Adv -@
10000 – Canara Robeco Infrastructure-D
9000 – HDFC Tax saver
@Naren
In spite of LIC jeevan saral, get LIC Amulya Jeevan (http://www.licindia.in/amulya_jeevan-I_benefits.htm)
Other investments appears good.
Hi Pankaj,
I am planning to invest 70k..
but i am totally confused where to invest..
i hv browsed so many sites on tax saver MFs but still I am not able to finalise..
can u pls advice me..
Thanks!
Ritu
@Ritu
You should divide among 1. Term insurance 2. Medical insurance 3. PPF 4. ELSS Mutual Fund.
For tax saver MFs, Good funds to invest are Sundaram BNP Paribas Taxsaver, SBI Magnum Tax Gain Scheme 93, Franklin India Taxshield, HDFC Tax saver, Birla Sunlife Tax relief, ICICI Pru Tax plan, Fidelity Tax Advantage
Hi Pankaj,
I am planning to invest 50K as mentioned below.
10K -> Birla SL Tax Relief 96 (G)
10K -> Birla SL Tax Relief 96 (D)
15K -> Can Robeco Eqty TaxSaver (G)
15K -> HDFC Tax saver.
Is it seems to be fine or you advice something else.
Thanks!
Ritu
@Ritu
These are good funds, you may also consider Sundaram BNP Paribas Taxsaver, SBI Magnum Tax Gain Scheme 93, Franklin India Taxshield, ICICI Pru Tax plan, Fidelity Tax Advantage
Hi, Pankaj,
I have to invest 40K for tax saving. Please let me know, which one is better.. ELSS vs ULIP plan. I am just concerning about return and risk factor.
in ULIP I found Kotak dynamic floor.
and in ELSS I think HDFC tax saver-G, or SBI magnum will be better..
I appricite your valuable comments on this.
Regards,
Arun
@Arun
Go for ELSS plus a term insurance (30K in ELSS and 10K in term insurance)
for ELSS, you may invest in Sundaram BNP Paribas Taxsaver, SBI Magnum Tax Gain Scheme 93, Franklin India Taxshield, HDFC Tax saver, Birla Sunlife Tax relief, ICICI Pru Tax plan, Fidelity Tax Advantage.
For Term insurance, you can get LIC Amulya Jeevan 1.
Hi Pankaj,
Good day!!!
Thanks for sharing the info on MF’s. Its really a good site. I have few questions that I would like to get them clarified.
I want to invest 40K for tax savings for 2009. It would be great if you can suggest me funds that give good returns. I am willing to go for 20K per fund.
My sal is 40K per month and would like to go for funds that would give me good returns in which l dont want any tax saving. I just want returns. In this case I am willing to go for short term gains(short term l mean by is max of 1yr). Please suggest me on the same.
I have invested 35K in LIC for the past 5yrs, HDFC ULIP (34K in total) which I stopped from last year. Have SBI magnium(10K) and PNB principal tax saving (10). Most of the responses that l read from you have TERM and Medical insurance. I dont have any of them. Do u suggest me to go for them too?? My age is 32.
Looking forward for your reply.
Regards,
Srinivas.
@Srinivas,
You can choose among Sundaram BNP Paribas Taxsaver, SBI Magnum Tax Gain Scheme 93, Franklin India Taxshield, HDFC Tax saver, Birla Sunlife Tax relief, ICICI Pru Tax plan and Fidelity Tax Advantage.
For a shorter term like 1 year, I won’t suggest you to invest in Equity funds as nobody knows whether markets will be up or down in next one year. Stock market/equity investments are good for longer terms (more than 4-5 years). Although some people may have earned very good income from 2005-2008 by investing in market, but there is no guarantee. So If you want sure returns in one year, stay away from equity and invest in Fixed deposits or debt funds.
Everybody should get medical and life insurance first and insurance should not be combined with investment. Insurance is for safety and not for generating returns. So from one’s saving, one must get a term insurance and then think about investment which should be in PF and Equity MFs (a mix with ratio depending on one’s age).
As you are 32, you must invest 70% in equity and 30% in debt funds and at-least get term insurance of cover 100 times to your monthly income.
Thanks for the reply Pankaj. In MF’s is it better to go for MF’s that give Dividend or the option of reinvesting the Dividend.
@Srinivas
Growth/Reinvest option is better if you want to be invested for a longer period, dividend when you need you money back at regular intervals.
Hi Pankaj,
Say l invest 10K in a MF, in 2009, and after one year I invest another 10K the next year and continue the same. As the locking period is 3yrs, I wanted to know if I keep on investing in the same fund will the locking period change or will it same as that it was in 2009?
Regards,
Srinivas.
@Srinivas
No locking period does not change.
Say you invested 10K in Feb 2006 and got X no of MF units. So in Mar 2009, you can sell X no of units as 3 years gets completed for these X units.
If l buy Y no of Units in 2007/2008 of the same fund will the locking period change? or will I get a new locking period of 2020/2011 for them?
@Srinivas
If you buy Y units in feb 2008, then you can not sell these Y units before March 2011.
Hi Pankaj.. Thanks for the replies and the advices.. wanted to know if its worth going for “ICICI Prudential Fixed Maturity Plan – Series 51 – 15 Months Plan E”…
@Srinivas,
Its a closed ended FMP fund and similar to Fixed deposits. You may go for it.
I am 24 years and am planning to start investing in mutual funds for a 1 year period .
i also plan to invest in SIP’S .
Which are good mutual funds and SIP’S.
i also heard of a fund know as principal bluechip emerging fund(g) is it good for a year ….from now..
@Rohan,
You can invest in following funds:
Sundaram BNP Paribas Taxsaver, SBI Magnum Tax Gain Scheme 93, Franklin India Taxshield, HDFC Tax saver, Birla Sunlife Tax relief, ICICI Pru Tax plan, Fidelity Tax Advantage
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
@Srinvasan
Sundaram Tax saver is a good fund and you may invest in it.
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.
@Kunal
BNP Paribas is better out of these two.
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.
@Sree
Apollo and Star Health provide good insurance.
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.
@Vijay
You can invest in HDFC and Birla Sunlife out of these 4 and choose growth mode.
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
@Rajesh
Birla Tax 96 is a good tax saver fund and you may invest in that. You can also consider HDFC tax saver, Franklin tax shield or sundaram bnp paribas tax saver.
There is no entry load on all mutual fund as of now, but agents like bajaj capital may charge you for their services. You can apply directly also.
Read thess articles for more: http://www.pankajbatra.com/finance/mutual-fund-investment-with-zero-entry-load/ and http://www.pankajbatra.com/finance/best-way-to-apply-in-sip/