Top 5 Best ELSS Tax saving Mutual Funds to invest in 2015

For salaried employees, the deadline to submit the provisional tax saving investment proofs is fast approaching. Most of the employers collect the documents in January. During this period investors/employees who have not done their tax planning rush to buy life insurance policies or some other tax saving investments. There is one tax saving option which I believe is the best investment avenue both in terms of tax benefit and wealth creation. I am talking about ELSS  (Equity Linked Savings Schemes) Mutual Funds. Let us analyze and identify the Best ELSS Tax saving Mutual funds.

ELSS funds are best suited for self-employed individuals too. ELSS Tax saving mutual funds come with a lock-in period of three years; the lowest among all the tax saving options that are available under Section 80C. (PPF’s lock-in period is 15 years, Tax saving Bank Fixed Deposit’s is 5 years, National Saving Certificate’s is 5 years etc.,)

Features / Benefits of Investing in ELSS Mutual Funds:

  • ELSS Mutual Funds are one of the best tax saving options under Section 80c. Infact, ELSS MF scheme is the only pure investment option under Section 80C through which investors can take exposure to equity markets.
  • ELSS Tax saving mutual funds come with a lock-in period of three years, the lowest among all the tax saving options that are available under Section 80C. (PPF’s lock-in period is 15 years, Tax saving Bank Fixed Deposit’s is 5 years, National Saving Certificate’s is 5 years etc.,)
  • ELSS falls under EEE tax rule (Exempt-Exempt-Exempt). No taxes are applicable during Contribution-Accumulation-Withdrawal phases. Investments get tax deduction under Section 80C, so you don’t have to pay tax on the amount invested in the ELSS fund. The capital gains generated by the fund are also exempt from tax as the investments are not withdrawn. Finally, withdrawals are also tax-free because there is no tax payable on long-term capital gains from equity-oriented mutual funds. The Employee Provident Fund and the Public Provident Fund are the only other investment options that enjoy the EEE tax treatment.
  • Dividends declared on these schemes are also tax free in the hands of unit-holders (investors)
  • You can start a SIP in ELSS MF with a minimum investment (as low as Rs 500). Unlike an life insurance, you don’t have to commit multi year investments.
  • There is no upper limit for investment in ELSS but the maximum tax benefit is limited to Rs 1 lakh under Section 80C.

Top 10 Best ELSS Tax saving Mutual Funds

There are around 93 ELSS funds under Tax Saving/ELSS Fund category. In the last five years the average returns generated by ELSS fund category is around 11% to 13% .

Let me first list down the top performing Equity Linked Saving Schemes purely based on the investment returns (past performances). I have considered both lump sum as well as SIP returns for the past 3years to 10 years. I have considered only those funds which are atleast 5 years old.

  • Axis Long Term Equity Fund
  • Franklin India Tax Shield Fund
  • ICICI Prudential Tax Plan – Regular Plan
  • Reliance Tax Saver (ELSS)
  • Birla Sunlife Tax Plan
  • BNP Paribas Long Term Equity Fund
  • Canara Robeco Equity Tax Saver Fund – Regular Plan
  • Religare Invesco Tax Plan
  • Tata Tax Saving Fund
  • HDFC Tax Saver

Methodology to select Top 5 Equity Linked Saving Schemes for SIPs or Lump sum investments :

As with any fund investment, when narrowing down to identify the best funds, an error many investors are prone to make is opting for the most recent chart topper. We need to consider the funds’ long term performances and other important factors too while shortlisting the best funds.

I have followed below points/methodology to shortlist best 5 ELSS funds out of the above ten funds.

  • Returns : I have shortlisted these top performing ELSS MFs based on monthly SIP returns and Lump sum Investment Returns.
  • Another factor is ‘the age of the fund’. How long has the mutual fund been in existence? That gives us a chance to look at its performance over long periods of time. Funds with a good track record for the last 5 to 10 years have been preferred.
  • Risk Vs Return : Some funds may generate very good returns but at the cost of very HIGH RISK. We need to look at risk-return trade off also. I have analyzed some of the important ratios to measure risks of mutual funds. These are like Standard Deviation, Alpha, Beta, Sharpe Ratio and overall Risk grades of the funds.
  • I have considered Upside capture ratios and Downside capture ratios. (These ratios show us whether a given fund has outperformed–gained more or lost less than–a broad market benchmark during periods of market strength and weakness, and if so, by how much)
  • I have considered Expense ratio as one of the criteria
  • I have not considered the STAR ratings of funds provided by Ranking agencies. Usually these star ratings reflect the short term (1 or 2 year’s) performance of the funds.
  • I have also given importance to “Fund’s Risk Grade.”
  • The primary sources of information are moneycontrol, valueresearchonline and morningstar.

Top 5 Best ELSS Tax saving Mutual Funds

(Click on the image to enlarge or to open it in a new browser window)

Best ELSS Tax saving Mutual funds 2015

  • Axis Long Term Fund has very high Alpha and Low Fund Risk Grade. This fund has been performing really well for the last 5 years or so. This fund has given 5 year SIP returns of around 35%, one of the highest in ELSS fund category.
  • Franklin India Taxshield Fund is one of my favorite funds. This fund has consistently performed well for the last many years. The standard deviation of this fund is also low. Franklin Taxshield is suitable both for lump sum and SIP investments.
  • ICICI Prudential Tax Plan has ‘average’ fund risk grade. You may have to stomach little bit of volatility to get good returns from this fund. This fund has been performing well for the last 10 years.
  • Canara Robeco Equity Tax Saver Fund has given returns of 21.7% during last 10 years ( on lump sum investment). This is the highest among all the above ten funds. The standard deviation of this fund is also low.
  • Religare Tax Saver Fund has given good SIP returns for the last 8 years.
  • HDFC Tax saver was the darling of many mutual fund investors for a long time. Off-late the volatility has been on the higher side for this fund. It also has very low Alpha ratio. Investors who can afford to take high levels of risk can still prefer HDFC Tax Saver.
  • If you consider Returns as the only criteria to shortlist a fund then Reliance Tax Saver Fund can surely be rated as a top ELSS fund. But when you consider other factors like high Standard Deviation, High Fund Risk Grade, high Beta ratio etc., then your decision might change.
  • TATA Tax Saving Fund‘s standard deviation is the lowest of all. It has ‘low fund risk grade.’ But you can not expect abnormal returns from this fund.

 Important points to ponder on ELSS

  • Though the lock-in period of ELSS  is three years only, it is advisable to invest in them with a long-term view. ELSS mutual funds are just like normal diversified equity mutual funds. So, the risk profile associated with them is high. So, you will be better off if you invest in them for long term wealth creation.
  • SIP Vs lump sum in ELSS? Remember that ELSS funds have a lock-in period of 3 years. So, each and every SIP installment will be locked for 3 years. It may be cumbersome when you start redeeming the mutual fund units. If you are not comfortable investing a lump sum amount at one shot, consider investing once a quarter.
  • It is better to opt for the GROWTH option of a ELSS fund. Don’t make the mistake of opting for the dividend reinvestment plan, under which the dividend payout is reinvested to buy more units of the scheme. Every time this happens, the new units get locked in for another three years. (Recently SEBI & AMFI had discussed this matter and asked Mutual Fund houses not to re-invest dividend amount under ELSS category)
  • While diversification is good, over-diversification may not be very good. In the name of diversification do not invest in  multiple funds from the same fund category.

Since ELSS is an equity fund, kindly note that there is no guarantee of return on investment. But looking at the historical performance, ELSS has outperformed traditional options such as PPF (Public Provident Fund), EPF (Employees Provident Fund) and tax-saving FDs (Bank Fixed Deposits) over a long period of time.

Have you invested in a ELSS mutual fund? Do you also think Mutual Fund ELSS is a damn good tax saving instrument? Did you find your fund in the above ‘Best ELSS Tax saving Mutual funds?’ Please share your views and comments. Cheers!

( Image courtesy of Stuart Miles at (Above returns are annualized returns of Regular plans with Growth option)

You may like reading my latest article :Top 6 Best ELSS Tax Saving MFs for 2016.”

  • Gangadhar says:

    Hi Sir,
    I am 35 years old s/w professional. Recently I have started investing in Axis Long Term Equity Fund – Direct Growth through a SIP of 10k per month. I am a newbie and after reading articles over internet, I have invested in this ELSS scheme for a Long Term (after 7 years from now) purpose. Please let me know if this is a good idea or not.

    Even, I am planning to invest around 8 lakhs (3 lakhs for medium term (i.e., 3-5 years) + 5 lakhs for long term (i.e., after 7 years)) in Mutual Funds in the next 2 years. Hence, kindly request you to suggest me the better choice of Mutual Funds for investing this amount. Also, since I was not able to decide between lumpsum and SIP, hence I thought of going on the safer side and took the SIP option with 10k per month in Axis Long Term Equity Fund – Direct Growth. In case, if Axis Long Term Equity Fund – Direct Growth is a good choice then, please let me know if investing lumpsum of 2 lakhs (i.e., 50k per quarter) in this year is a good idea or not.

    Thanks in Advance,

    • Dear Gangadhar,
      Axis LTE : Are you looking for tax saving + wealth creation?
      For 5 year time-frame : You may consider equity oriented balanced fund.
      Best Equity funds.

      • Gangadhar says:

        Hi Sir,

        Thank you for the suggestion. Since I am short of 50k under 80c, hence I just started investing 10k/month via SIP in AXIS LTE thinking that it will create good wealth in long term. But primarily I am looking for wealth creation only.

        Thanks in Advance,

  • Abdul says:


    Im planning to invest in MF for tax planning purpose (60000 yearly).
    Kindly let me know which scheme to choose and whether it is advisable to go for lump sum or SIP route

    • Dear Abdul,,
      You may consider Franklin Taxshield and do remain invested for longer term.
      Personally, I make 2 to 5 installments manually in ELSS fund, prefer lump sum to monthly SIPs in an ELSS fund.

  • shrikant bhujbal says:

    An eye opener for the beginners like me thank you very much

  • Karthik Ganesan says:

    Dear sir,
    I am requesting you please suggest on below –

    I am 29 years old and next year will get married . I am earning 50 k per month in private IT sector.

    My long time, short time goals are –
    1) 5-6 years – own house through loan may be during down payment need 10-12 lakh
    1) 12-15 years – child education.
    2) 28-32 years – Child marriage.
    2) 20 years – retirement.

    Currently I am investing in
    1. PFF account amount 75 K per year from 2014 .
    2. insurgence policy only for life cover & paying the amount 7 k per year.
    3. recurring account investing 1500/- per month from Jan – 2014. (It has taken for 5 years – total amount it will come approx 1.12 lakh with interest).

    Please suggest me with plan name like ELSS for Axis ….

    Thank you so much 🙂


    • Sreekanth Reddy says:

      Dear Karthik,
      As of now, you may prioritize your insurance planning & retirement goal as your high priority tasks.
      You may consider buying a stand-alone Personal Accident cover.
      Read : Best Personal Accident Insurance Policies in India : Details & Comparison
      Retirement planning – Read this article : Retirement Planning in 3 Easy steps

      Kindly note that your expenses, savings and investible surplus can have a drastic change after getting married. So, invest as much as possible in equity oriented funds now and analyze your finances after 1 year or so.

      • Karthik Ganesan says:

        Dear Sir,
        I am thinking like —

        1. Franklin Taxshield – 1500/- PM SIP
        2. Axis Long Term Equity Fund – 1500/-PM SIP
        3. PPF 75 k per year
        4.will continue the 1500/- recurring
        5. 36 k per year in NPS account (thinking to open)
        6. also I can invest 2k per month more – No idea where I invest it.. pls suggest it
        7. I have Pradhan Mantri Suraksha Bima Yojana & PMJJBY paying approx 500/- per year
        8. also I have one life cover policy paying 7k per year.

        I don’t have any backup plan, currently my expenditure is 17 k per month & 10 k giving to brother education.

        so I have only 23 k per for future requirement & investment .

        Please review the above plan & suggest me..

        thanks a lot


  • Manish Kumar says:

    Dear Sir,
    I am planning to invest RS.3500/- per month in ELSS scheme for next 6 year.Can you please suggest me which mutual fund is better?

  • Karthik says:

    Hi Sreekanth,

    I am new to these terms, advice me.
    My age is 28, after 10 years i should saved around 2cr – 3cr (I have plans for this savings). I am earning 2l /month.
    Which are the best scheme to invest my earnings. Should I do SIP or lump sum (both are convenient to me).

    • Sreekanth Reddy says:

      Dear Karthik,
      To accumulate Rs 2 cr in 10 years, at an expected return of 12%, you have to invest around Rs 87k per month (on an average).
      So, you may start with smaller amount as your investment and gradually can increase it.
      You may consider one Diversified equity fund, one mid-cap fund and one small cap fund.
      Ex – Franklin Prima plus, HDFC Mid-cap opportunities fund & Franklin smaller cos fund.

  • Manish Kumar says:

    Dear Sir,
    I am planning to invest RS.3500/- per month in ELSS scheme for next 6 year. I have one PPF account & investing 75000/- per year from 2014. my target is buy the flat after 5-6 years under 50 lakh through loan. Can you please suggest where i invest the money so i can get the amount around 7-10 lakh for booking the flat. also suggest how much minimum need to invest.


    • Sreekanth Reddy says:

      Dear Manish,
      If you want to invest in ELSS fund via SIPs and would like to redeem these investments within 6 years, you need to plan your investments very wisely. Because, the units allocated under each SIP would have lockin period of 3 years.
      To accumulate Rs 10 Lakh in next 5 years at an expected return of 10%, you may have to invest around Rs 13,000 per month.

  • Bharat Bhushan says:

    Hi Sreekanth, you briefly touched the topic of “SIP vs Lump sum in ELSS, could you please shed some more light on it. I read an article on Economic Times ( which suggests that investing Lump sum in ELSS is certain to give better returns than the SIP. But the table which you have shown in the blog, contradicts the ET article. It would be very helpful if you can comment on this aspect.

    And, one more question; (I am just a beginner) I wanted to know can we invest in lump sum in ELSS or start SIP online through net banking, without any need of going personally to bank or agents? And is Demat account required for this purpose?


    • Dear Bharat,
      Kindly read between the lines..
      Actually the article indirectly highlights the importance of COMPOUNDING – investing early (lump sum amount) and staying invested for long-term.
      In case of a lump sum investment, if one invests say in Jan 2017 to Jan 2027 years then the lump sum amount is invested for entire duration.
      In case of a SIP for 10 years, only the firs SIP is invested for 10 years. Hence there is difference in Corpus accumulation amount.
      The article mainly refers to accumulation amount rather than the RETURNS part.

      It also says that how many of us such kind of one-time big corpus amount to invest. So, if you do not have then SIPs are the alternate choice 🙂 .

  • durga prasad says:

    HI Sreekanth ,
    Thanks for the info i am a beginner for mutual funds and i want to invest 4000/month for perio of 5 years as SIP , could you please suggest me in which mutual fund i need to invest

  • Simranjeet Singh says:

    Hi Sreekanth,

    I am 26 years old and have 3SIPs running of around 5500 monthly, one LIC of around 33k yearly, one RD of 5000(started 4-5 months back) and a PPF account(which I use rarely) of 25k. I want to invest around 3000-4000 more on a monthly basis for tax benefits. Time Period- 5Yrs at least. Monthly SIPs are for following funds:

    ICICI Value Discovery (started 1 yr back)
    AXIS LONG TERM EQUITY FUND – GROWTH PLAN (started 1 yr back)
    Franklin India Smaller Companies Fund GROWTH (started 1yr back)

    Also, planning to buy flat in next 3-4 years by paying 25 to 30% as a down payment.

    • Dear Simranjeet,
      MF portfolio is fine. You may make additional investments in Axis LTE fund itself, for tax saving purposes.
      May I know the LIC plan name, commencement date & tenure. Do you have any family member who is financially dependent on you?
      Read : Calculate future value of you investments!

      • Simranjeet Singh says:

        Hey Sreekanth,

        Thanks for your revert.

        I don’t remember the name exactly but its a money back policy. Commencement date is Nov, 2013 for a period of 20yrs and every 5th year, i’ll get a 20% of sum assured. As if now, there is no one who is financially dependent on me.


  • Dilip Bharadwaj says:

    Hello Sreekanth Garu,

    Your articles are extremely informative. Kudos to you. Could you please tell me if the below portfolio looks ok to you? I intend to invest 30k/month together in the below funds. My investment horizon is 5-10 years and I do not have any specific goal.

    1.Axis Long Term Equity
    2.Mirae Emerging Bluechip
    3.Franklin Smaller Companies
    4.UTI Transportation and logistics
    5.ICICI Prudential Value Discovery.

    Also, I see that most of the funds are at a 52 week high. Is it fine if I invest lump sum now?

    Thank you!

    • Dear Dilip,
      Good ones. UTI fund though it is sector specific fund, I believe that implementation of GST can have positive impact on the industry.
      As you are investing for long-term, kindly dont wait, invest now 🙂


    Dear Srikant,

    My Mutual Funds Nav as on 23 August is 8.30 Lakhs(Started monthly SIP’s with Rs.3500 in 2009 and gradually increased to Rs.12500 as on today).

    Investment is 643,253 and return is 186,230 (28.95%).

    I Invested 50000 in Reliance Tax Saver (ELSS) Fund (G) in November 2014 all other are SIP’s(Equity Only)

    I have 100000 to invest now,pls let me know where should i invest? Stocks,SIP”s or ELSS.

    • Dear MALLIKARJUNA ..If ok, kindly share your portfolio details (just MF scheme names).


        Birla Sun Life Frontline Equity Fund(G) SIP
        Birla Sun Life Infrastructure Fund(G) SIP
        Franklin India Flexi Cap Fund (G)SIP
        Franklin India High Growth Companies Fund (G)SIP
        Franklin India Smaller Companies Fund (G) SIP
        HDFC Top 200 Fund (G) SIP
        ICICI Prudential Focused Bluechip Equity Fund (G) SIP
        Motilal Oswal MOSt Focused Midcap 30 Fund – Regular Plan (G) SIP
        Reliance Equity Opportunities Fund – Retail Plan (G) LUMPSUM
        Reliance Regular Savings Fund – Equity Option (G) LUMPSUM
        Reliance Small Cap Fund (G) LUMPSUM & SIP
        Reliance Tax Saver (ELSS) Fund (G) LUMPSUM
        SBI Pharma Fund (G) SIP
        UTI Transportation and Logistics Fund (G) SIP

        • MALLIKARJUNA REDDY says:

          Dear Sreekant,Invested Rs.100000 lumpsum in Reliance Equity Opportunities Fund – Retail Plan (G) in Nov 2014,just 6% returns till date,today redeemed half the Units.

          All other funds have given reasonable returns,the below 3 are my STAR performers

          Reliance Small Cap Fund (G) LUMPSUM & SIP RETURNS 24% (STARTED NOV 2014)

          Reliance Regular Savings Fund – Equity Option (G) RETURNS 79% (SIP 2009 TO NOV2014)

          Birla Sun Life Frontline Equity Fund(G) SIP RETURNS 63% (SIP JAN 2011 TO TILL DATE)

          • MALLIKARJUNA REDDY says:


          • Dear MALLIKARJUNA ..I believe that you have invested in many funds which may not be that beneficial. May I know your investment objective(s) / financial goals and time-frame?
            You may just pick one fund from each fund category based on your time-frame.
            Read: What are large/mid/small cap funds?
            Kindly check Portfolio overlap among the funds which are from the same fund category, for ex : Birla Frontline & ICICI Focused, as both are Large-cap oriented funds. IF the overlap is on a higher side say >50% then you may drop one fund from your portfolio.
            How to check Mutual Fund portfolio overlap?
            How to select the best mutual fund scheme based on risk ratios?
            My MF portfolio.

          • MALLIKARJUNA REDDY says:

            Thanks Sreekanth,Valid point i never thought about it,pls let me know which fund to keep and which fund to redeem and re-invest in other fund which is not over-lapping,my portfolio is purely investment to get maximum returns.

            Sorry,i am asking you too much to rejig my portfolio,i am a layman in this field,just started investing based on ratings in few websites.

          • Dear MALLIKARJUNA,
            I will surely assist you in re-aligning your portfolio.
            But suggest you to go through the above articles and do little bit of research/evaluation from your side, once you understand the concepts there is no need for you to depend on anyone else (that’s my point).
            Kindly do overlapping analysis and revert to me.

  • Arpit says:

    i have been investing in NSC from past 3years around a lakh rs.
    But as return is taxable i am thinking of moving to ELSS which is better as per you.
    Also how to study these different ELSS options.


  • abhijit .v.ghanekar says:

    Dear Sir
    I have got sizable money 1.5 lakhs to invest in ELSS fund for long term basis of atleast 5 years & Secondly i have 5 lakhs of my mom to invest in EQUITY BALANCE FUND (GROWTH OPTION) for period of 5 years .
    So calculating market risk what max returns i will get by 5 yrs .
    pls reply

  • Rohit says:

    I have started 4 SIPs for Rs.10,000/- each:
    1) SBI Bluchip fund
    2) ICICI Pru Value discovery
    3) HDFC Mid-cap Opportunities
    4) UTI MNC fund
    I need to invest another 10K per month for saving tax under 80C. Time horizon is more than 5 years. Kindly suggest which option is the best for me. I am considering the option of PPF even though the lock-in period is 15 years. Pls suggest….if it is ELSS fund then which fund? I was inclined towards Axis Long Term Equity Fund (G).


  • Pooja Mistry says:


    I have a sum amount of 20,000, that i would like to invest in ELSS mutual funds every month. I do invest in FDs but I do not want my savings to jus sit in the bank. Please suggest the best ELSS funds to invest for me. I fail to understand the difference between various types of funds.
    even though after thorough research.
    I am looking for short term investments, probably within 1-3 yr time frame, with a moderate risk, tax benefit. But I plan to start with something to invest for 3-6 months duration until i am sure of how it works and that i can invest in something with a higher risk.

    Pooja Mistry

  • Gaurav says:


    I have a sum amount of 30,000, that i would like to invest in savings. Please suggest me what are the best options for me. Also consider FDs, Mutual Funds, ELSS, PPFs. I do not have much savings, and my affordable savings from this month is nearly about 25k per month. So please advice where i could invest 25k per month and also the 30 k Lump sum amount.


    • Dear Gaurav..May I know your time-frame & investment objective?

      • Gaurav says:

        Hi Sreekanth,

        I am looking mostly for 3-5 years investment, and also tax savings preferably to be one of the funds.I plan on investing 10k as RD monthly and remaining on Mutual Funds or elsewhere. So could you guide me with the best options. Investment options are just to get a sum amount of return after 5 years for probably marriage.


        • Dear Gaurav,
          May I know the reason for opting for RDs?
          For a 5 year time-horizon, you may consider investing in one ELSS fund (Ex-Franklin Taxshield) and in one Balanced fund (Ex- HDFC Balanced fund).
          Read: Best Balanced funds.

          • Gaurav says:

            Basic reason for selecting RD is to have a sum amount after 1 year, in case i need for any unknown emergencies.I have decided to go with the following plan.Please advice if this is fine.
            In SIP mode:
            2500-Franklin India Smaller Companies Fund- 5 years
            2500-SBI Magnum Mid cap Fund-3 years
            2500-Axis long term Equity Fund-5 years
            2500-HDFC Balance Fund-5 Years

            So what would be the best option for the 10K remaining?RD or something else. And also the 30k lump sum amount?


          • Dear Gaurav,
            You may invest in a mid-cap (SBI) fund for 5 years and consider balanced fund for atleast 3 years.
            If it is for emergency fund, kindly go ahead with RD. However, you may also have a look at this : Best Arbitrage funds.

  • Sush Roy says:

    I have read you post, here you describe benefits of investing in ELSS mutual funds and it’s a very useful for tax saving. Thank for sharing this knowledgeable post.

  • Hi Sree,

    I’m nearing 40 yrs and would like to invest money in ELSS for my retirement and child education who is in 2nd standard now. Kindly suggest the best plan.


  • Mahantesh says:

    Hi Sreekanth,

    I’ve been investing in
    1.Axis ELSS -1.5k per month
    2. Reliance ELSS – 3k
    3. Franklin Templeton Tax Shield – 2k. All are Direct / Growth for an year now.

    I’m thinking of starting of another SIP of Escorts ELSS. If I do so, do you think my portfolio becomes over diversified. If so why. ?

    What are my different options to stay invested in MFs other than increasing the existing folios SIP amount.

    I already have LIC bonds worth 45k/year. Under 80C.

  • harish Sharma says:

    Hi Srikanth,

    I am 40 year old & want to invest in tax saving sip please suggest best performer fund.
    my yearly income is rs-4.5 lacks

  • Raja Rajagopal says:

    Hi Sree,

    Hope you and your family are doing good.

    After a long time I am writing this blog. Hope you aware of ICICI MF introduced a NFO (ICICI Prudential India Recovery Fund – Series 7 – Close Ended ) fund. Can we buy this one?

    what is your opinion on this fund?

    Goal: There is no specific goal. For my future life.

    • Dear Rajagopal,
      ICICI Prudential India Recovery Fund – Series 7 is a close ended fund. The tenure of the plan is 1100 days (3 years) from the date of allotment of units.
      Suggest you not to invest in NFOs as we have plenty of Equity Schemes which are well-performing with proven track record.
      If your aim is to accumulate wealth in long-term, you may consider investing in a well diversified equity fund.

      • Raja Rajagopal says:

        Thanks for the advise Sree.

        Let me check some good diversified equity fund. However, kindly provide me a few fund name where I can invest some amount ? Also please let me know, Is that investment can be a lump sum or it should be a SIP (for 10 years period for Rs 50,000)?

        Thank you so much for your time and help.

        Thanks & Regards,
        Raja Rajagopal

        • Dear Rajagopal,
          Kindly read: Best Equity funds 2016.
          You may invest lump sum.
          Ex : Franklin Prima plus.

          • Raja Rajagopal says:

            Hi Sree,

            Good Morning. Hope you and your family are doing good.

            I had invested Rs. 25,000 as lump sum in
            Franklin India Prima Plus (Diversified)
            ICICI Focused Blue Chip (Large Cap)

            I may need some bulk amount to my sister’s daughter study after 3 year. and I have some amount in my hand now (Rs. 70,000).

            Exactly I do not know, How much I may need at that time. But need some amount.

            Can you please guide me, where I can invest this money? or As you mentioned, Can I go head and select some more diversified fund and invest?

            You advise can help me a lot.

            Raja Rajagopal

          • Dear Rajagopal,
            For a 3 year duration and for the said purpose, you may consider a balanced fund (40%) & MIP fund (60%).
            Best Balanced funds
            Best MIP MFs.

          • Raja Rajagopal says:

            Thanks Sree for the advise. Let me check the Balanced Fund and MIP MFs.

            Raja Rajagopal

          • Raja Rajagopal says:

            Hi Sree,

            I have invested Rs. 15,000 each on the below two Balanced Funds .
            HDFC Balanced Fund
            TATA Balanced Fund.

            Planning to invest the remaining 60% into MIP’s funds. Checking your blog for good MIP’s.

            I need one more advise. I have plan to get new bike by next year June or July. For that I may need 80,000 that time. Instead of taking from the savings account that time, Can I invest in some fund for short term to get this. If so, what kind for fund I can choose and how much I need invest?

            Need your advise on this.

            Thanks & Regards,
            Raja Rajagopal

          • Dear Raja,
            Kindly understand how MIPs work before investing in them.
            You may opt for Short-term Debt fund or Arbitrage fund (1year+).
            Kindly read:
            Best Debt funds.
            Best Arbitrage funds.

  • Manoj says:

    Hi Sreekanth,

    I’ve been following your posts and they are very informative. Thanks for all the good work done!

    I’ve been invested in following 3 Tax saver funds for a fairly long time. I don’t need these from tax saving perspective.

    HDFC Taxsaver – Dividend (current value: Rs. 93k)
    HDFC Taxsaver – Growth (current value: Rs. 32k)
    L&T Tax Advantage Fund – Dividend (current value: 113k)

    For the Taxsaver Dividend funds, I started SIP of Rs 1.5k in Mar/2006 and stopped them after 2-2.5 years. The Growth fund was a lump-sum investment of Rs. 10k in Feb/2006

    My Investment Goal (in view of above fund): To secure fund for my children’s education in next 3-5 years (currently elder son in 8th and younger in 6th standard).

    Kindly suggest where and how (one time/periodic) to invest the amount if I redeem all of the above funds.

    From long term perspective, for last 9 months I’ve been doing SIP Rs. 25k distributed in following 4 funds. Are these good funds from long term pov?
    HDFC Mid-Cap Opportunities Fund(G)
    ICICI Pru Focused BlueChip Eq Fund(G)
    Mirae Asset India Opportunities Fund-Reg(G)
    UTI Dynamic Bond Fund-Reg(G)


  • Dr. G.P.Kumar says:

    Dear Mr. Reddy

    Please advise me the best ELSS category Mutual fund for investment during 2016; I have already invested in BNP, Axis and Reliance in the past. Also advise me two mutual funds in the non-ELSS category; I have already invested in SBI Blue Chip and SBI Emerging business fund in the past.

  • Prakash says:

    Dear Shreekanth ji,
    My yearly income is about 9.5Lakhs. i am short of 50k in my 80C still for this year. i can invest this 50K in one shot. pls suggest best tax saving fund . i can hold it for long term .

  • RAj says:

    Hi Sir,

    My Income is 6 – 7 lacs and I am able to invest upto 5000 PM for ELSS. Please suggest some good plans to invest in ELSS.

  • kumar says:

    Hi Sreekanth,
    I am 28 years old.still i didn’t started any saving.After seeing your block i thought to save.Could you please suggest me the best plan to save.I had package of 6.9 Lakhs.
    My main purpose is for health.
    Wealth creation for future and planing for home after 4 years.
    I am unmarried.

  • Suraj says:

    hello sir,

    my income bracket is 5.5 lac to 6 lac. I am govt employee. And i am having only lic worth 19000. i need to save another 130000. and for that My plan is

    PPF 20000
    FD 45000
    SIP 6000 per month.

    please suggest me fund name and and please allocate this 6000 pm to those

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