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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I am new to mutual fund. I am planning to invest in ELSS. is it a good option. can you suggest me few ELSS scheme for investing.
@Nithya
ELSS is meant for income tax saving purpose and has a 3 years lock-in period (during which you cannot sell the units).
Some of the good funds are Canara Robeco Equity Tax Saver, Sundaram BNP Paribas Taxsaver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver, Fidelity Tax Advantage and SBI Magnum Tax Gain Scheme.
Hi Nithya, if you are looking for High Risk, High Returns, Please go with “DSPBR MICRO CAP FUND-R-G”.
If you are looking for low risk and medium returns.
Go with HDFC Tax Saver Funds.
i have already invested in HDFC top 200,monthly Rs 2000/- throhg SIP.And am also intrsted to invest in BSL frontline equity fund ,2000 and HDFC tax saver,2000 pm.Is it good choice..pls suggest
@Janaki
All of these are good funds.
thanx for the reply
Pankaj,
Can you please let me know best term insurence policy, now i am 32 and my current net sal is 60000.
Thanks,
Mothi
@Mothi
You should get policy for at-least 50 Lakhs for 35 years policy term (So that you will be covered till 67 years of your age).
Premium for LIC – Amulya Jeevan(Plan – 190) will come around 22,100 per year.
MetLife – Suraksha Plus with same plan will come for 15,607 per year.
Hi ..
SBI Life Shield is a good option for Term Insurance bcoz of increasing cover wid same premium.. I took it recently.
Regards,
Sri
@Sri
Thanks Sri for sharing information.
Points I see for not buying SBI are
1. Max coverage period is 25 years.
2. SBI is relatively new and there is not much data available for claim settlement ratio.
Hi Pankaj,
Thanks for the posts. So much useful for all of us.
Please give me clarity on the below. I’m 25 years.
1. I am planing to start SIP in HDFC Taxsaver ELSS scheme-Growth from this august for Rs.3500- Is it the correct decision as i choosen only 1 fund. Or what else fund is correct option.(For tax saving purpose with good return)
2. Now the market is at its peak. Is it good to start investment now?
3. I planned to buy 1 unit of Gold ETF every month. I dont know which gold ETF is best. May i buy that in SIP option? I don’t have demat account only having icici investment account. Whether its possible to buy gold using icici investment account(Not demat account)?
4. Can I put some money in liquid fund for just 2 to 3 months also is it wise decision? (I have taken this idea from your post)
Thanks in advance.
@Mothilal
1. HDFC is definitely a good fund with good past record.
You may also consider splitting the same among Canara Robeco Equity Tax Saver, Sundaram BNP Paribas Taxsaver, HDFC Taxsaver, Franklin India Taxshield – Growth, DSPBR Tax Saver and Fidelity Tax Advantage.
2. SIP investment is always good as it averages out cost of buying.
3. Gold ETF can only be traded with demat account. Most of the ETF are traded on similar price as all are dependent on Gold price. You can consider Benchmark Gold BeES
4. Yes, you can put money even for one day in liquid funds. It will give you better return than savings account. If you have spare cash lying in your account and you don’t need that for some time, better put it in Liquid funds. There is no entry-exit load on most of the liquid funds and redemption only takes a day.
I transfer my salary to liquid funds as soon as it arrives in salary account. 😀
Hi Pankaj
Can u Pls suggest some good liquid funds and how to go about it.
@Ajay
Please read this post for more details : Liquid mutual funds http://www.pankajbatra.com/finance/liquid-mutual-fund-saving-account
Hi Pankaj,
I have an years’ experience in the professional world (age: 23) and want your advice on good beneficial tax saving schemes. I can commit around 50k annually on it. I am not looking for a very long term investment kind….1-3years maybe…or 5years at max. Please advice me on this and help me make my choice. Thanks for your time !!!!
@Varun
You must buy first term insurance and medical policy.
After that, invest remaining amount in ELSS (Equity linked tax saving Mutual funds) and some amount to PPF.
Hi Pankaj,
Thanks for the advice. Can you let me know which ELSS should I go for and what is their tenure and interest rates? Thanks for the quick response earlier!!! Appreciate your help!
@Varun
ELSS mutual funds are market linked investment and there is a 3 years lock in period (before which they cannot be sold). Their return cannot be predicted.
They may give good returns or may be negative after 3 years. Its high risk investment.
Hi Pankaj,
Thanks for the prompt reply. I would really appreciate if you could advice me on some of the best ELSS mutual funds which are reliable and have proven to give good results. Thanks for everything. Appreciate highly!!!!
@Varun
Some of the better funds are Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver, Fidelity Tax Advantage, Sundaram BNP Paribas Taxsaver and SBI Magnum Tax Gain Scheme.
Thanks for all the help!!!!
I invested in ICICI prudential infrastrcture fund-Growth from jan-2008(NAV 36) to dec-2008 through SIP.Still NAV 30.00 only.
Is it better to redeem my units and invest in other MF.
And,suggest, which MF is good to invest from the redemption amount for 1 to 2 years.
thanx
janaki
@Janaki
Sectoral funds have more risk involved in it. Its better that you invest in some diversified fund like HDFC Top 200 Fund, Birla Sunlife Frontline equity fund or DSP Backrock Top 100 fund.
than you pankaj
i am planning to invest Rs2000/pm in gold.so, shall i directly invest in goldshare thr’o online or any other gold ETF.which is better option.is there sip option in gold ETF scheme.what about the charges.pls clarify my doubt.
@Janaki
There is no SIP in gold ETFs and they have to be traded like stocks with Demat account.
thanx for the reply.And what about the charges and which one is best gold ETF.
@Janaki
You can invest in Benchmark Gold BeES and there are no entry/exit load charges.
HI,
I am planning for a short term investment for 3 and 5 yrs. it can be either monthly or yearly mode. can you please suggest me some schemes for investment.
@Nithya
If you require for income tax savings, invest in ELSS mutual funds (Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver and Fidelity Tax Advantage are some good schemes).
I was looking for tax saving only.. thank you so much. can you please suggest me some liquid funds.
@Nithya
Please read this post regarding liquid funds : http://www.pankajbatra.com/finance/liquid-mutual-fund-saving-account/
Here is very informative link from Economic Times on Mutual Fund Quarterly Review Report:
http://etintelligence.com/etig/researchchannels/investorsspecial/mftracker0610/elss.jsp
Cheers
Planning to invest Rs 10000=00 at a time for 1 yr .
Is Latest NFO of Rilance small cap fund suggesteble?if not ,pls advised me which is the best fund.
@Janaki
One year is too less time to invest into equity funds. I cannot suggest any equity fund for one year investment horizon.
thanx for the reply.And ,can u pls suggest me in which fund i can put the the amount of RS:10000=00 for short term.
@Janaki
Its better to invest in Fixed Deposit or any debt fund like Birla Dynamic Bond fund, Canara Robeco Income fund, HDFC Income fund etc.
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