Best Income Tax Saving Mutual Funds

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• Hi Pankaj,

  I have Sharkhan trading account and I called up their customer support and they told me that if I buy any mutual fund that will be zero entry load. I have question if I invest in ELSS funds for tax saving through Sharkhan, Do I get any thing as proof (Whcih eventally I need to submit with my company) or the statement will work. Thank you in advance. Thanks.

  Sunil

  • @Sunil
    Entry load is scrapped from all mutual fund so no entry load will be charged no matter you apply through any broker/agent.
    But broker(sharekhan in your case) or agent may charge brokerage/service fees for transaction. Ask them for service charge details.
    If you invest through any broker or agent, you can get your mutual fund statement from mutual fund company (in which you are invested in) by providing folio number. This statement can be shown as a proof of investment.

    • Thank you Pankaj.

• Hi Pankaj

  i want to invest monthly 3000Rs in SIP,can u suggest me 1 or more mutual funds wherein the returns are good.
  also please let me know which schemes are good,growth and divident for long duration like 5 years or so.
  Note: I want good returns with Tax saings also.

  • @Biren
    You may invest in HDFC tax saver, Sundaram Tax saver, SBI magnum taxgain and Franklin India Taxshield.

    • Hi Pankaj,

      This is truely a very appreciative job u are performing helping everyone with the crucial info.Great going Sir...I just wanted to ask u is it that after april 2012 whatever u are investing in the mutual funds will nt save ur taxes.Kindly reply.Thanks Charan.

      • @Charanjeet
        Investment into Equity tax saving mutual funds won't be available for tax exemption after April, 2012 (Once Direct Tax code - DTC comes into play)

• Hi, I am frm India. This is the 1st time am paying tax. So, wat are the best investmnt options to evade tax?

  • @Hitesh
    First of all get a Term insurance and medical insurance. After that invest in ELSS (equity linked mutual funds) and PPF (public provident fund).

• Hi pankaj
  thanks for the advice

  have one more query though.
  every month i have with me some surplus funds (varying from 500-2000),is there any scheme wherein i can invest this amount for shorter period of time (i mean i can withdraw any time) and also in the process earn some returns.

  Thanks in advance !

  • @Biren
    Please read the article here : http://www.pankajbatra.com/finance/liquid-mutual-fund-saving-account/
    I hope this will help.

• Re-Your recommendation about best tax savings fund.
  Do u rate HDFC-G, ICICI Pru tax plan-G; Can Robeco Eq(G), higher or equal to the above?

  • @Surendra
    Yes, HDFC Tax saver and ICICI Pru Tax plans are also good.

• Hi Pankaj,

  I want to invest my money in either shares or mutul funds. I see a NFO of Sundaram BNP Paribas PSU Opportunities Fund. Is it good fund to invest? I always go with your words as I also earn profile in previous to do so. Please suggest. Thank you in Advance.

  Sunil Bansal

  • @Sumit
    In spite of NFOs, I would suggest you to invest in old funds which have proved themselves in past.
    Some of the good equity funds (Non tax savings) are HDFC Top 200 Fund, ICICI Pru Discovery Fund, Sundaram S.M.I.L.E Fund, HDFC Equity Fund and Sundaram Select Midcap. You may choose among them.
    Also, do your research also before investing; as this will give you more confidence in where you are putting your money.

• Happy New Year Batra,
  My take homes around 50K, Need to invest 1 Lackh on Tax-Saving funds, and another 1 lackh as investment long-term (Say 10 years). I need to accomodate both as (SIP),
  Kindly advice me a portfolio (Both for tax saving and Investment purpose on monthly basis).
  Thanks,
  Narayanan

  • @Mr Narayanan
    Happy new year to you as well.
    for tax savings, Franklin India Taxshield, Sundaram BNP Paribas Taxsaver, Birla Tax Relief and HDFC Tax saver are good funds.
    for long term investment, you may invest in HDFC Top 200 Fund, Sundaram S.M.I.L.E Fund, HDFC Equity Fund, ICICI Pru Discovery Fund or Sundaram Select Midcap.

• Hi Pankaj,
  I am investing 2k per month in IDFC mutual fund - ELSS - SIP with 3 years locking period. Is it good to continue?

  Also I need to invest around 20 k to save tax for current financial year. Is it better to invest in PPF or any other tax saving mutual fund.

  • @Prasad
    You must divide investment money into debt and equity investments. If already do not have investment in PPF/EPF or fixed deposit then you should invest in ELSS mutual funds for long term.
    IDFC ELSS is good fund and have good returns so far. You have also invest in Franklin India Taxshield, HDFC Tax saver or SBI Magnum tax saver for better returns.

• Hi Pankaj,

  I am planning to invest 50 K in SBI Magnum Tax gain as tax saver next month.
  What would be your suggestion, whether I want to invest full 50 K with magnum tax gain or divide into other funds like Franklink india, magnum tax gain, sundaram etc....

  Thanks a lot in advance.

  Best Regards,
  Remya Rahul

  • @Remya
    You may divide it into HDFC Tax saver, Franklin Taxshield, SBI Magnum and Sundaram tax saver.

• Thanks for the reply Pankaj.

  One more doubt I have. Can I join to these plans from any of the banks? Do I want to pay any entry load for doing like this?

  Best Regards,
  Remya Rahul

  • @Remya
    You can apply directly to these funds by filling the form and submitting along with cheques.
    Entry load has been abolished, For more details about application read following articles:
    http://www.pankajbatra.com/finance/mutual-fund-investment-with-zero-entry-load/
    http://www.pankajbatra.com/finance/best-way-to-apply-in-sip/