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 hv registered for hdfc prudence through sip by a agent of eastern financiers ,kolkata
after reading ur comment about extra charges debited by broker in disguise..i asked the agent about it ,bt he cd not clarify it in straight cut way
cd u sggest me how sd i know abt it ?
@MJ
Entry load has been abolished now on all mutual fund investments.
Agents earn from commissions which mutual fund companies pays them for all investments made through them.
Agents may also charge extra amount as service fees.
If agent has not taken any extra amount other than SIP investment cheques, you need not to worry about same.
Hi Pankaj,
I am a Free lancer in Bangalore and service for mutual Fund Investments and Infrastructure bonds, I never ever recommend ULIPS.
Your advices to customers are very good and informative, if Possible can I met with you for a chat ? Please reply, thanks
Hi Pankaj..
I m jay a s/w engineer…i hv a query that if i wil invest in a tax savin mutual fund on sip basis frm march2011-march 2012.shall i get tax benefit for the financial yr april2011 to 31st march 2012…after the introduction of DTC.
thanx in advance.waitin 4 ur reply..
@Jay
Direct tax code (DTC) will be applicable from 1st April, 2012. So you will get benefit of all investments into tax saver mutual funds done before that.
Long term gain (kept for more than a year) from equity mutual funds are exempt from income tax, so there won’t be any tax on profits earned from tax saver mutual funds.
BTW, I am also a software engineer.
one more thing i wld lik to ask for the investment to b made by me as said above frm march 2011 to march 2012.wil the profit frm such investment after 3yrs will b taxable or exempted..
hi Pankaj,
u seem to be my only hope, i am saving for the first time, i have only 30k to invest, i am looking at Best returns with No risk (also with a veiw to save tax). what should i invest in life insurance/ term plan/ fixed deposit/ recurring deposit/or sumthing else that i am missing or should i go for a combination. how should i distribute if you suggest to buy a combo.should i go for a long term or short term? if i devide my investment in various products will my returns diminish? if so then what should be my first priority? which brand/s should i buy?
@Nilesh
If you are only looking for risk free returns, then Fixed deposits or PPF seems to be good option.
Otherwise, you should get a Term insurance first and then invest rest into equity linked mutual funds.
For term insurance, you can get LIC Amulya Jeevan or ICICI iProtect plan.
For Equity linked mutual funds, you can choose to invest among Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver and Fidelity Tax Advantage.
Hi Pankaj,
Can u pls suggest me…which one is better in between(ICICI pru tax plan and HDFC Tax saver plan)?..or should i go for any other tax saver plan?
@Souradeep
HDFC tax saver plan is one of the best tax saving mutual fund. You may invest in that.
Hi,
I want to invest one time 10000 in any tax saving schem. Can you please advice?
Thanks
@SS
You can read answer to a similar query on tax savings here
how an invester recieves dividend declared under dividend payout scheme
@MJ
It can be directly paid in bank account (NEFT/RTGS), or by cheque/draft.
It will be written on your mutual fund folio statement.
Dear Pankaj,
I had a question on SIPs. I am looking to invest Rs. 10k each month in a SIPs plan and on a long term basis (at least 5 years). Should I go for a tax-saving plan (e.g. HDFC tax saver) or a pure equity linked plan (e.g. Reliance Equity Opportunities). I wasn’t sure about the first option as I have heard that capital gains and income from any investment of over three years is exempted from tax. If that’s true than the equity linked plan does make sense, doesn’t it?
Would appreciate your response. Thank you.
@Dino
Tax benefit in equity mutual fund investment won’t be available after April, 2012, so does not make any sense to invest in tax savings mutual funds after that.
So for coming financial year (2011-12), in case you want deduction under 80-C, you can start SIP for a year in equity linked tax saver mutual funds.
If you are only looking for investment and not towards tax savings, then you should only go with equity mutual funds (non tax savers). You can start SIP in diversified equity mutual funds. If these funds are kept atleast for an year, its considered long term investment and there is no tax liability on selling.
Hello Sir,
You website is quite informative.
Q.1. I want to Invest monthly in the following:
i) HDFC TOP-200= Rs.1000/-
ii)Reliance Growth= Rs.1000/-
iii)Canara Reboco Tax Saver= Rs. 500/-
iv) PPF Rs.2000/-
v)RD Rs. 1000/-
Is my strategy is correct?
what should be the modifications I do?
What should be my investment duration?
I have already done LIC. I am married and a new member will come soon. My Salary is 30,000.
Plz suggest me about the the fund selected and duration?
Any other helpful info????????????
Thanks in advance.
@Tutu
Your selection seems good.
You must invest in these for long term (more than 5 years atleast)
Hiii Pankaj,
My Self Rinkesh Vankawala.
I have to invest 10000 per year up to only 1 or 2 years because of some personal work i will again need money with high return so how to invest proper way .Please guide me the same.
@Rinkesh
For short term duration like 1 to 2 years, you can invest into FMP (Fixed Maturity Plans) mutual funds.
Pankaj,
I am planning to take home loan around 25 – 30 lak, please let me know which bank providing low interest rates and which is the best one
Thanks in advance,
Ram
@Babu
You can try from SBI or LIC.
Hi Pankaj,
May I know the investment benefits for tax saving fixed deposits,
a) Is the full amount exempted?
b) Do the interested received Taxable.
Kindly advice
Thanks,
Prasanth.
@Prasanth
Amount deposited into tax saving fixed deposits is exempted from income tax (under 80-C with max limit of 1 lakh). But Interest received on tax saving fixed deposit is taxable.
Hello Pankaj,
Need your expert advise again!! I have a 8 month old child and want to plan for his future needs. What are your thoughts on LIC’s Child Career Plan? Are there any other plans available in the market? Awaiting your response.
Best Regards
Nagarajan
@Nagarajn
You should invest in diversified equity mutual funds or balanced funds.
Please don’t go for any insurance or child plan ULIPs from insurance companies.
Hi Pankaj,
Thanks. Is there any specific reason why one shouldn’t go for any insurance or child plan ULIPs from insurance companies.
Also please can you suggest / list out the diversified equity mutual funds or balanced funds to invest.
Best Regards
Nagarajan
@Nagarajan
In long term, equity or balanced mutual fund will generate better returns and they don’t attract any extra charges for mortality and management.
You can choose among following equity mutual funds: Birla Sunlife Frontline equity fund, HDFC Top 200 Fund, DSP Blackrock Top 100 fund, Reliance Regular Savings – Equity,
ICICI Pru Discovery Fund, DSP Blackrock small and midcap fund.
In Balanced funds, you can pick from Reliance Regular Savings Balanced, HDFC Prudence and HDFC Children’s Gift-Inv.
Many Thanks Pankaj. Can I invest Rs.10,000 monthly through SIP… lets say for 5 years. Should I choose dividend or growth? What percentage of money should be allocated in Equity, Small & Mid cap and Balanced fund. Please Advise.
Best Regards
Nagarajan
@Nagarajan
You can start monthly SIP for mutual fund investment.
Growth option is better for long term. You can divide your portfolio like:
1. 40% into large cap mutual funds
2. 20% into small and mid cap mutual funds.
3. 40% into Balanced funds.
In ELSS ,for long term is dividend option beneficial or Growth is beneficial ?.And are the ELSS scheme will don’t get any tax benefit after 2012.
@Santosh
For ELSS, dividend reinvestment is better. Read more here about different options and their benefits: http://www.pankajbatra.com/finance/growth-dividend-payout-reinvestment-mutual-fund-investment-options/
Once direct tax code is implemented (from 1st April, 2012), income tax exemption on investment in tax saving mutual fund won’t continue. Read more about direct tax code here: http://www.pankajbatra.com/india/new-direct-tax-code-dtc-highlights/
hi pankak, im looking for a short term MF (1yr) where in i can get max gauranteed returns… as i am planning to buy a house in a years time… want more financial investment plans fr a years time… so can you please help me??
@Rohan
You can invest in Bank fixed deposit for guaranteed returns at this point. Interest rates are pretty high so you can get benefit of that.
Other option can be Fixed maturity plan (FMP) mutual funds, whose taxation is better that fixed deposit but they cannot guarantee fixed returns (generally they give similar returns as fixed deposits)
and will it be a time investment or monthly?
as i cannot put much in a monthly plan can u suggest me a plan for a 1 time plan?! please
Dear sir,
Please tell me i want to save tax pls suggest me some tax saving mutual fund so that my tax deduction will be reduces it should come under 80c of income tax pls mail me the details
@Sunitha
You can invest in Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver or Fidelity Tax Advantage.
Hi Pankaj, after doing an analysis on my income,expenditureand savings, my financial advisor has advised me to invest as per below :-
Franklin India Taxshield Rs. 9000 SIP
HDFC Equity Fund Rs. 7500 SIP
Templeton India Growth Fund Rs.4500 SIP
Lumpsum of Rs.2.5 lakhs in HDFC Equity Fund
Lumpsum of Rs.1 lakh in Franklin India Flexicap Fund
What is your take on this for a long term perspective?
Regards,
Shanky
@Shanky
I won’t advice you to put huge lump-sum amount into Equity mutual funds. You may put them into MIPs and start a STP (Systematic Transfer Plan) to equity based mutual funds.
Unless needed for tax saving purpose, avoid tax saving mutual fund.
HDFC Equity fund, Templeton India Growth Fund and Franklin India Flexicap Fund are good funds.
You may also consider adding Fidelity India Growth, HDFC Top 200, Franklin INdia prima plus, DSPBR Top 100 equity, Franklin India Bluechip and Reliance Regular Savings Equity.
Dear Sir,
I am sachiv singh ( age 24 years) and I want invest Rs. 5000.00 monthly in SIP and tell me about large cap mutual fund, mid cap mutual fund,and balanced fund( with name) . and also suggested me for percentage of amount invested in different funds.
@Sachiv
Large Cap Equity: DSPBR Top 100 equity and Franklin India Bluechip
Equity Large & Mid Cap: Fidelity India Growth, ICICI Pru Dynamic Inst, HDFC Top 200, Canara Robeco Equity Diversified and Franklin INdia prima plus
Equity Multi Cap: HDFC Equity, Templeton India Growth and HDFC Growth
Hybrid/Balanced Equity Oriented: Reliance Regular Savings Balanced, HDFC prudence, DSPBR Balanced, HDFC Balanced, HDFC Children’s Gift and Birla Sunlife 95
You can split 2500, 1000 and 1500 into large cap, balanced and mid cap.