Elss funds advice for Tax saving

Q & A Forum › Category: Investments › Elss funds advice for Tax saving

prash88_ch asked 8 years ago

Hi, I have to invest total 80,000 rs u/s 80C by Mar 2018. I would be investing 30,000 rs through SIPs by Mar 2018 in DSP BR tax saver and franklin india tax shield ELSS funds. Pls suggest few ELSS funds where I should be investing remaining 50,000 rs considering the current trends ? Thank you so much PC

3 Answers

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Sreekanth Staff answered 8 years ago

Dear PC, You may invest this Rs 50k in the same two existing funds itself. Suggested readings : https://www.relakhs.com/best-elss-funds-2017-2018/ https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/ https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/

prash88_ch replied 8 years ago

Thanks Sreekanth, Could you pls also suggest if i should go for SIPs for remaining months OR wait for market to go down before Mar 18 and do a lumpsum. ?

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Sreekanth Staff answered 8 years ago

Hi, What if markets reach even higher levels by March? So, let's not try TIMING the markets.. Suggest you to go ahead with SIP mode..

prash88_ch replied 8 years ago

Hi Sreekanth, As you suggested I increased the monthly SIP amt in two existing ELSS funds (DSP and franklin). Would you suggest to do SIP in “Birla Sun life Tax Relief ’96” also for the remaining amount in order to achieve distributed asset allocation ? Pls let me know. Thanks, PC

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Sreekanth Staff answered 8 years ago

Hi..I believe too many funds may not be really beneficial, that too from same Fund category. Kindly go through 'overlap' article as suggested.