7/9/2015

BestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

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SmartMoneyGoal.inmutualfundsBestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

Best Tax saving mutual funds schemes in India Top ELSS schemes
BYPARSHA

MUTUALFUNDS,TAXSAVING

Amutualfundisoneofthebestvenuestogetexposureintheequitymarkets.Itisanidealrouteforpeoplewhodo
nothavetheknowledgeordisciplinetopickqualitystocksandstaythecourse.Taxsavingsmutualfundsprovide
youthedoubleadvantageofsavingtaxesandenhancedreturn.
ELSS(EquityLinkedSavingScheme)isatypeoftaxsavingmutualfundseligiblefordeductionunder80C.Many
peopledonotmakeuseefficientuseofELSS.Itcanbeadoublehitifutilizedproperly.

ELSSorTaxSavingMutualFunds
TheGovernmentofIndiaprovidestaxdeductionuptoalimitofRs.1,00,000whenanindividualinvestsinanELSS
scheme.
Itsjustlikeanyotherdeductionunder80Csection.Pleasenotethatthe
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BestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

cumulativedeductionisOnelakh.Soifyoumadeotherinvestmentsfor50,000
foreg.,inPPF,insurance,NationalSavingsSchemethenyoucanmakeuseofthe
remaining50,000forELSSinvestment.
WhyisELSSoneofbetteroptionsunder80C?
AnELSSschemegivesyouequityexposureandprovidestaxexemptions.So
doublebenefitsforsalariedemployees.
Ithasbeenshowntha
taxsavingmutualfunds

tequitycanprovidebetter(ifnotthebest)returns

amongallassetclasses.
Ifyoumakelosses,youcanadjustitagainstcapitalgainsonotherprofits(Thatis

notwhatwedesirethoughJ)
Yougetprofessionalstomanageyourfundsinvestedintheequitymarkets.
Thesetaxsavingmutualfundsgiveyouawellroundeddiversifiedassetallocation
ASystematicInvestmentPlan(SIP)methodwillgiveyouDollar/RupeeCostAveragingadvantage
Potentialofnotaxonlongtermgains.SinceELSShavepredominantlyequity,youdonotneedtopaytaxon
longtermgains.YOUGETTAXFREEGROWTH
ComparedtoPPFwith15yearslockin,EquityLinkedSavingsSchemesjusthavea3yearlockin(shortestintax
savingcategory).Eventaxsavingfixeddepositshave5yearslockin.
ThenegativesofELSS/taxsavingmutualfundinvestments
Equityisavolatileassetclass.Ifyouarethekindofpersonlookingatinvestmentseveryday,itwillgetyour
heartrateup.
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BestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

Ifinvestedinlumpsumcombinedwithwrongtiming,thereturnscanbenegativeovertheshortrun.
Aminimumlockinofatleast3years
YouhavetochoosethebettermanagedELSSmutualfunds.Youdonotwanttogetintoabadfund.
Tip#1:AnidealmethodtoinvestintaxsavingmutualfundswouldbetotakeanSIPmethod.
Tip#2:Itshouldbeinawellmanaged(crediblefundmanager)fundfromareputedmutualfundhouse.
Tip#3:DontinvestinonelumpatMarch(orendoffinancialyear)togettaxsavings.Marketsmaybeatthehigher
end.Thenifmarketgoesdown,yourvaluesshrinksdrastically.Assaidabove,splitthemoverseveralmonthsin
uniformway.

Besttaxsavingmutualfundschemes

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BestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

Source:Moneycontrol.com

ELSSschemestypicallyinvestmajorityinequitymarkets.Soaprudentdecisiongoesalongway.Weusedfilterslike
http://www.smartmoneygoal.in/blog/besttaxsavingmutualfundsschemestopelssindia/

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BestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

:
5yearperformanceperformanceoverlongterm
qualityfundhousesafety,trustworthiness
Decentfundmanagerlongtrac

krecordwithsamemutualfund

QualityofstockportfolioAmixofLesshighbetacoefficient(morerisk)andmorequalitydurablebusiness
stocksinprotfolio
RiskparametersStandarddeviation,Beta,Sharperatiowereconsidered
PotentialToperformbetterinfuturebasedonstocksheld
SomeoptionsareAxisLongTermEquityFund,ICICIPruTaxPlan,HDFCTaxSaver(G).Youcancheckthemoutat
Moneycontrol.com.Innoparticularorder.
Fundname

AUM(AssetsManagedin

5yearannualized

FundManager

NAV(inRs)

crores)

return

920

21.2%(4.5years)

JineshGopani

19.83

ICICIPruTaxPlan(G)

1547

24.3%

ChintanHaria

192.4

HDFCTaxSaver(G)

3455

20.9%

VinayKulkarni

286.63

FranklinIndiaTax

980

20.5%

AnilPrabhudas

279.54

1948

21.4%

AshwaniKumar

28.82

AxisLongTerm
Equity(G)

Shield(G)
RelianceTaxSaver(G)

Impressive,isntit?Aswehavemaintained,equityhasthehighestreturnoverlongerterm.Nootherinvestmentcan
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BestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

matchforitinaconsistentway.Ofcoursethetrickhereistopickgoodstocks/funds,stickwiththemlongtime.Also
youneedtotimetheinvestments(ifonetimelump)elsedoinSIPmethod.
TaxsavingmutualfundsarenotincludedinthedraftDTCunder80Csectioneligibility.ButDTChasnottaken
effectstillandwedonotknowwhenitwill.Sowedonotknowhowlongthedeductioneligibilitywill
continue.AnybodylookingtosavetaxmustmakeuseoftheseELSSfunds.Thereturnsoninvestmentsmadenow
willbeavailableevenafterDTCtakeseffect.
Tip#5:YoudonotneedtohaveaDemataccounttoinvestinELSSschemes.Youcandirectlyapproachthefund
houseandapply.Onceyougetthefolionumber,youcanstartanSIPmethod.
Tip#6:Bedisciplined.BettermakeanECSmandatesothatyouwillbedebitedautomaticallyevermonth.
Tip#7:Donotwithdrawfromtaxsavingmutualfundsbefore3yearsorbetter5years.Wementionedalreadythat
ELSShavea3yearlockinperiod.Equitytendstoworkinlongerterm.
Tip#8:JustbecauseELSShaveonlythreeyearslockinperioditdoesnotmeanyoumustinvestonlyfor3years.
Theyareopenendedandcanbecontinuedforlongerthan10years.Alsotaxsavingmutualfundsmanagerstendto
beabitconservativethanthematic/diversifiedequityfunds.Soitdirectlyreducestherisklittlecomparedto
diversifiedfunds(Note:Withlowerrisk,returnsofELSSschemesalsotendtobelowerthandiversifiedfunds:))
Hopewehaveansweredthequestionsinyourmind.Didwemisssomethingontaxsavingmutualfunds?Letus
knowinthecomments.Becausewewillincludethemtobenefitreadersinfuture.Usefulpost?LikeIt,ShareIt,
FollowUs
Disclaimer:Recommendationsarebasedonthecurrentfundperformance.Pastperformanceisnoindicationof
futureperformance.Investorsmustconsulttheirfinancialplannerordotheirownanalysisbeforeinvesting.We
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BestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

donotgetpaidformakingtheserecommendations.

Related

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schemesinIndia
In"HOWTO/WHATIS"

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20152016

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Jointhediscussion
ShariffMirza amonthago

Thankyouforsharingsuchgreatinformation.Itisinformative,canyouhelpmeinfindingoutmoredetailonbestinvestment
plan,iamverynewtothisfieldandwantedtounderstandthebasicsoflifeinsurance.

Reply Share

BalaAbay 7monthsago

GreatSchemesonTaxsavingMutualFundsandtipswasreallygreatandmuchuseful.Thanksforsharingsuchvital
informationactuallyIamlookingforinformationregardingtaxsavingmutualfundsinIndia.Nowthisblogpostwrittenbyyou
definitelyhelpmealot.?
taxsavingmutualfunds

Reply Share

ParaniDharan

Mod >BalaAbay

7monthsago

ThanksBala...elssarereallygoodinvestmentsunder80c..gladudecidedtousethem..

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