Best Tax Saving Mutual Funds Schemes in India - Top ELSS Schemes

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 B  Y PARSHA  MUTUAL FUNDS, TAX SAVING Best Tax saving mutual funds schemes in India – Top ELSS schemes   A mutual f und is one of the best venues to get exposure in the equity markets. It is an ideal route for people who do not have the knowledge or discipline to pick quality stocks and stay the course. Tax savings mutual funds provide  y ou the double advantage of saving taxes and enhanced return. ELSS (Equity Linked Saving Scheme) is a type of tax saving mutual funds eligible for deduction under 80C. Many people do not make use efficient use of ELSS. It can be a double hit if utilized properly. ELSS or Tax Saving Mutual Funds The Government of India provides tax deduction upto a limit of Rs. 1,00,000 when an individual invests in an ELSS scheme. It’s just like any other deduction under 80C section. Please note that the SMART MONEY GOAL.IN  HOME ABOUT US HOW TO/WHAT IS INVESTING INSURANCE NRI TAX RELATED GENERAL FINANCE-BEGINNERS Smart Money Goal.in » mutual funds » Best Tax saving mutual funds schemes in India – Top ELSS schemes

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Best Tax Saving Mutual Funds Schemes in India - Top ELSS Schemes

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  • 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

    SMART MONEY GOAL.INYOURGUIDETOBETTERMONEYDECISIONS

    HOME ABOUT US HOW TO/WHAT IS INVESTING INSURANCE NRI TAX RELATED GENERAL

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    SmartMoneyGoal.inmutualfundsBestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

  • 7/9/2015 BestTaxsavingmutualfundsschemesinIndiaTopELSSschemes

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    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

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    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

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    :

    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

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    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

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    donotgetpaidformakingtheserecommendations.

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    ShariffMirza amonthagoThankyouforsharingsuchgreatinformation.Itisinformative,canyouhelpmeinfindingoutmoredetailonbestinvestmentplan,iamverynewtothisfieldandwantedtounderstandthebasicsoflifeinsurance.

    Reply

    BalaAbay 7monthsagoGreatSchemesonTaxsavingMutualFundsandtipswasreallygreatandmuchuseful.ThanksforsharingsuchvitalinformationactuallyIamlookingforinformationregardingtaxsavingmutualfundsinIndia.Nowthisblogpostwrittenbyyoudefinitelyhelpmealot.?

    taxsavingmutualfunds

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

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