Investment in ELSS - tax saving funds

Q & A Forum › Category: Investments › Investment in ELSS – tax saving funds

sureshs asked 8 years ago

I have invested in " IDFC Tax Advantage (ELSS) Fund-Growth-(Direct Plan)" -30k i am planning for investing another lumpsum of 20k in the above fund before this financial year and planning to invest 25k -25k in other elss fund kindly let me know how to proceed with my investments would like to invest in direct plan

Is it ok to go ahead with IDFC for 20k
which ELSS funds should i select for investing lumpsum of 25k and 25k?

In short i am planning to invest 1lac as 50k ,25k,25k. which are the best to invest Tata India Tax Savings Fund L&T Tax Advantage ABSL Tax Plan DSP Blackrock Tax Saver Fund Birla Sunlife Tax Plan Birla Sun life Tax Relief ’96 Franklin India Taxshield Fund Axis Long Term Equity Fund HDFC Long Term Advantage Fund ICICI Prudential Long Term Equity Fund IDFC Tax Advantage

7 Answers

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Sreekanth Staff answered 8 years ago

Hi, May I know your investment time-frame? IDFC tax adv fund is a decent performer. You may continue with it and can also make additional investments. Have you invested in any other MF schemes, besides ELSS fund(s)? Kindly read : https://www.relakhs.com/best-elss-funds-2017-2018/ https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/

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sureshs answered 8 years ago

Hi, Thanks for reply.My time frame is for 5yrs. No i dont have any MF's . But planning for SIP. Gone through your links and have zeroed down to some ELSS funds Tata India Tax Savings Fund
ABSL Tax Plan
DSP-BRTax Saver Fund
L&T Tax Advantage Kindly help me in best of 2 .Thanks in advance.

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Sreekanth Staff answered 8 years ago

Hi, You may go ahead with Birla tax relief and Franklin Tax shield / DSP tax saver fund, suggest you to remain invested for long-term.

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sureshs answered 8 years ago

long term mean more than 5 yrs right

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Sreekanth Staff answered 8 years ago

Hi, I mean depending on the fund's performance and your requirements, try to remain invested in equity oriented funds as long as possible (say 10 years+), that gives a higher probability to get decent risk adjusted returns.

sureshs replied 8 years ago

Thanks for your valuable inputs

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sureshs answered 8 years ago

Hi, Thanks for your inputs i have invested in Birla tax relief i have a dilemma with DSP tax saver fund as its Benchmarch index is higher than NAV i had read nav should be higher than bench mark index . Can you help me to get more clarity if i am wrong Also i want to know to get diversified portfolio can i invest in same bench march index or i should invest in different bench mark index. Planning to invest in two more elss funds can u help me out on the same would like to invest around 30k

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Sreekanth Staff answered 8 years ago

Hi, Ideally, any fund manager try to build a portfolio which can beat and outperform the Scheme's benchmark index. DSP Tax Saver is a decent fund. It is common, to see volatility in returns. However, if the scheme continues to under-perform its benchmark index say for couple of years then we need to take a call. Related articles : https://www.relakhs.com/portfolio-tracking-mutual-funds/ https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ https://www.relakhs.com/best-elss-funds-2017-2018/