best tax saving mutual funds schemes in india - top elss schemes

7/9/2015 BestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

http://www.smartmoneygoal.in/blog/besttaxsavingmutualfundsschemestopelssindia/ 1/11

BYPARSHA MUTUALFUNDS,TAXSAVING

Best Tax saving mutual funds schemes in India Top ELSS schemes

Amutualfundisoneofthebestvenuestogetexposureintheequitymarkets.Itisanidealrouteforpeoplewhodonothavetheknowledgeordisciplinetopickqualitystocksandstaythecourse.Taxsavingsmutualfundsprovideyouthedoubleadvantageofsavingtaxesandenhancedreturn.

ELSS(EquityLinkedSavingScheme)isatypeoftaxsavingmutualfundseligiblefordeductionunder80C.ManypeopledonotmakeuseefficientuseofELSS.Itcanbeadoublehitifutilizedproperly.

ELSSorTaxSavingMutualFundsTheGovernmentofIndiaprovidestaxdeductionuptoalimitofRs.1,00,000whenanindividualinvestsinanELSSscheme.

Itsjustlikeanyotherdeductionunder80Csection.Pleasenotethatthe

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7/9/2015 BestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

http://www.smartmoneygoal.in/blog/besttaxsavingmutualfundsschemestopelssindia/ 2/11

taxsavingmutualfunds

cumulativedeductionisOnelakh.Soifyoumadeotherinvestmentsfor50,000foreg.,inPPF,insurance,NationalSavingsSchemethenyoucanmakeuseoftheremaining50,000forELSSinvestment.

WhyisELSSoneofbetteroptionsunder80C?

AnELSSschemegivesyouequityexposureandprovidestaxexemptions.Sodoublebenefitsforsalariedemployees.

Ithasbeenshowntha 1 tequitycanprovidebetter(ifnotthebest)returns

amongallassetclasses.

Ifyoumakelosses,youcanadjustitagainstcapitalgainsonotherprofits(ThatisnotwhatwedesirethoughJ)

Yougetprofessionalstomanageyourfundsinvestedintheequitymarkets.

Thesetaxsavingmutualfundsgiveyouawellroundeddiversifiedassetallocation

ASystematicInvestmentPlan(SIP)methodwillgiveyouDollar/RupeeCostAveragingadvantage

Potentialofnotaxonlongtermgains.SinceELSShavepredominantlyequity,youdonotneedtopaytaxonlongtermgains.YOUGETTAXFREEGROWTH

ComparedtoPPFwith15yearslockin,EquityLinkedSavingsSchemesjusthavea3yearlockin(shortestintaxsavingcategory).Eventaxsavingfixeddepositshave5yearslockin.

ThenegativesofELSS/taxsavingmutualfundinvestments

Equityisavolatileassetclass.Ifyouarethekindofpersonlookingatinvestmentseveryday,itwillgetyourheartrateup.

7/9/2015 BestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

http://www.smartmoneygoal.in/blog/besttaxsavingmutualfundsschemestopelssindia/ 3/11

Ifinvestedinlumpsumcombinedwithwrongtiming,thereturnscanbenegativeovertheshortrun.

Aminimumlockinofatleast3years

YouhavetochoosethebettermanagedELSSmutualfunds.Youdonotwanttogetintoabadfund.

Tip#1:AnidealmethodtoinvestintaxsavingmutualfundswouldbetotakeanSIPmethod.

Tip#2:Itshouldbeinawellmanaged(crediblefundmanager)fundfromareputedmutualfundhouse.

Tip#3:DontinvestinonelumpatMarch(orendoffinancialyear)togettaxsavings.Marketsmaybeatthehigherend.Thenifmarketgoesdown,yourvaluesshrinksdrastically.Assaidabove,splitthemoverseveralmonthsinuniformway.

Besttaxsavingmutualfundschemes

7/9/2015 BestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

http://www.smartmoneygoal.in/blog/besttaxsavingmutualfundsschemestopelssindia/ 4/11

Source:Moneycontrol.com

ELSSschemestypicallyinvestmajorityinequitymarkets.Soaprudentdecisiongoesalongway.Weusedfilterslike

7/9/2015 BestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

http://www.smartmoneygoal.in/blog/besttaxsavingmutualfundsschemestopelssindia/ 5/11

:

5yearperformanceperformanceoverlongterm

qualityfundhousesafety,trustworthiness

Decentfundmanagerlongtrac 1 krecordwithsamemutualfund

QualityofstockportfolioAmixofLesshighbetacoefficient(morerisk)andmorequalitydurablebusinessstocksinprotfolio

RiskparametersStandarddeviation,Beta,Sharperatiowereconsidered

PotentialToperformbetterinfuturebasedonstocksheld

SomeoptionsareAxisLongTermEquityFund,ICICIPruTaxPlan,HDFCTaxSaver(G).YoucancheckthemoutatMoneycontrol.com.Innoparticularorder.

Fundname AUM(AssetsManagedincrores)

5yearannualizedreturn

FundManager NAV(inRs)

AxisLongTermEquity(G)

920 21.2%(4.5years) JineshGopani 19.83

ICICIPruTaxPlan(G) 1547 24.3% ChintanHaria 192.4

HDFCTaxSaver(G) 3455 20.9% VinayKulkarni 286.63

FranklinIndiaTaxShield(G)

980 20.5% AnilPrabhudas 279.54

RelianceTaxSaver(G) 1948 21.4% AshwaniKumar 28.82

Impressive,isntit?Aswehavemaintained,equityhasthehighestreturnoverlongerterm.Nootherinvestmentcan

7/9/2015 BestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

http://www.smartmoneygoal.in/blog/besttaxsavingmutualfundsschemestopelssindia/ 6/11

matchforitinaconsistentway.Ofcoursethetrickhereistopickgoodstocks/funds,stickwiththemlongtime.Alsoyouneedtotimetheinvestments(ifonetimelump)elsedoinSIPmethod.

TaxsavingmutualfundsarenotincludedinthedraftDTCunder80Csectioneligibility.ButDTChasnottakeneffectstillandwedonotknowwhenitwill.Sowedonotknowhowlongthedeductioneligibilitywillcontinue.AnybodylookingtosavetaxmustmakeuseoftheseELSSfunds.ThereturnsoninvestmentsmadenowwillbeavailableevenafterDTCtakeseffect.

Tip#5:YoudonotneedtohaveaDemataccounttoinvestinELSSschemes.Youcandirectlyapproachthefundhouseandapply.Onceyougetthefolionumber,youcanstartanSIPmethod.

Tip#6:Bedisciplined.BettermakeanECSmandatesothatyouwillbedebitedautomaticallyevermonth.

Tip#7:Donotwithdrawfromtaxsavingmutualfundsbefore3yearsorbetter5years.WementionedalreadythatELSShavea3yearlockinperiod.Equitytendstoworkinlongerterm.

Tip#8:JustbecauseELSShaveonlythreeyearslockinperioditdoesnotmeanyoumustinvestonlyfor3years.Theyareopenendedandcanbecontinuedforlongerthan10years.Alsotaxsavingmutualfundsmanagerstendtobeabitconservativethanthematic/diversifiedequityfunds.Soitdirectlyreducestherisklittlecomparedtodiversifiedfunds(Note:Withlowerrisk,returnsofELSSschemesalsotendtobelowerthandiversifiedfunds:))

Hopewehaveansweredthequestionsinyourmind.Didwemisssomethingontaxsavingmutualfunds?Letusknowinthecomments.Becausewewillincludethemtobenefitreadersinfuture.Usefulpost?LikeIt,ShareIt,FollowUs

Disclaimer:Recommendationsarebasedonthecurrentfundperformance.Pastperformanceisnoindicationoffutureperformance.Investorsmustconsulttheirfinancialplannerordotheirownanalysisbeforeinvesting.We

7/9/2015 BestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

http://www.smartmoneygoal.in/blog/besttaxsavingmutualfundsschemestopelssindia/ 7/11

donotgetpaidformakingtheserecommendations.

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ShariffMirza amonthagoThankyouforsharingsuchgreatinformation.Itisinformative,canyouhelpmeinfindingoutmoredetailonbestinvestmentplan,iamverynewtothisfieldandwantedtounderstandthebasicsoflifeinsurance.

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BalaAbay 7monthsagoGreatSchemesonTaxsavingMutualFundsandtipswasreallygreatandmuchuseful.ThanksforsharingsuchvitalinformationactuallyIamlookingforinformationregardingtaxsavingmutualfundsinIndia.Nowthisblogpostwrittenbyyoudefinitelyhelpmealot.?

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ParaniDharan 7monthsagoMod >BalaAbayThanksBala...elssarereallygoodinvestmentsunder80c..gladudecidedtousethem..

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7/9/2015 BestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

http://www.smartmoneygoal.in/blog/besttaxsavingmutualfundsschemestopelssindia/ 10/11

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