Top 8 Best ELSS Tax Saving Mutual Funds to invest for 2018-2019
Every year, I am recommending Best ELSS tax saving mutual funds to invest in India. Last year recommended Top ELSS Funds for 2017-2018 which gave returns between 30% to 46% in just 1 year. ELSS Funds are useful for employees or business men who want to save income tax u/s 80C. If you are in the highest tax bracket of 30%, you can get a tax exemption of over Rs 45,000 in a financial year along with getting good returns. What are ELSS Tax Saving Mutual Funds? Which are the Top 8 Best ELSS Tax Saving Mutual Funds to invest for 2018-2019? Which are the good ELSS Tax Saving Funds to invest now in India?
Also Read: Top 10 Mutual Funds to earn high returns with low risk in 2018
What are ELSS Tax Saving Mutual Funds?
If you are already familiar with this, you can skip this section.
Equity Linked Mutual Funds (ELSS), generally called as ELSS or Tax Saving Mutual funds provide tax exemption u/s 80C upto Rs 1.5 Lakhs along with mutual fund scheme benefits. You can invest upto Rs 1.5 Lakhs to get tax exemption. If you invest beyond it, excess invested amount does not qualify for 80C exemption.
Benefits of investing in ELSS Tax Saving Mutual Funds
1) Investing in ELSS Funds offers a tax exemption upto Rs 1.5 Lakhs u/s 80C.
2) Tax Saving Funds provides higher returns (which are not fixed and are not guaranteed) compared to other tax saving schemes like PPF, NSC, bank saving FD schemes etc.,
3) ELSS funds have low lock-in period of 3 years. Other instruments like NSC has six years and PPF has 15 year lock-in period if you save money in these instruments.
4) Investors have an option to choose dividend option in these ELSS funds. For dividend option, one would get regular dividends (again, not guaranteed) even during the lock-in period of 3 years.
5) Investing in Tax Saving mutual funds by monthly SIP would help individuals save every month instead of a lump sum. You can invest as low as Rs 500 per month through SIP in these ELSS Funds.
Disadvantages of investing in ELSS Funds
1) Tax Saving ELSS funds invest in equities, hence these are risk compared to other tax saving options.
2) ELSS funds have 3 year lock-in period for lump sum and for each and every SIP. As an example, if your SIP is on 1-Jan-18, it has lock-in period of 3 years. Your next SIP is on 1-Feb-18, even this too would have 3 year lock-in period.
Top 8 Best ELSS Tax Saving Mutual Funds to invest for 2018-2019
These top 8 mutual funds to invest in 2018-2019 have been analysed and shortlisted based on key parameters.
1) Picked based on highest returns received in the last 5 to 10 years. Preference given for ELSS funds which are consistent performers.
2) Picked-up ELSS funds that gave highest returns through SIP.
3) Funds that are rated by Crisil as Rank-1, Rank-2, Rank-3 and Rank-4 which indicates good fundamentals for these top 8 tax saving mutual funds. Means these are best ELSS funds as per Crisil rating.
4) Value research Online (VRO) rated these mutual funds as 5 star, 4 star and 3 star. Means these are best ELSS Tax Saving funds as per value research.
5) AUM (Assets under management) > 500 Crores. This proves investor confidence among these top ELSS mutual funds.
Top#1: Reliance Tax Saver Fund
Strategy of the ELSS fund: The MF scheme aims to generate L/T capital appreciation from a stock portfolio that is invested predominantly in equity and equity related instruments in India.
Performance of the fund: This is my favorite fund, I have been recommending and which has been consistently performing well. This mutual fund has generated 46% returns in last 1 year and 23% annualized returns in the last 5 years. Since inception this fund gave 17% annualized returns. If you have invested Rs 1,000 per month through SIP, in 5 years the investment would have been Rs 60,000 and your investment value would have grown to Rs 113,000. If you would have invested Rs 1 Lakh 3 years back, your investment amount would have grown to Rs 1.52 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment amount would have grown to Rs 2.8 Lakhs.
Reasons to invest: This fund performed well and gave 23% annualized returns in 5 years. Crisil Ranks this mutual fund as Rank-3 (Lowest is better) and Value Research rates this as 3-Star (Higher is better). This is one of the Best ELSS Tax Saving Mutual Funds to invest in 2018-2019.
Top#2: Axis Long Term Equity Fund
Strategy of the ELSS fund: The ELSS scheme is to generate regular long term capital growth from a diversified portfolio of equity and equity related securities in India. The MF Scheme will invest in a company that has strong growth and sustainable business model.
Performance of the fund: This is the Top-2 ELSS mutual fund which has been consistently performing well. This mutual fund has generated 39% returns in last 1 year and 23% annualized returns in the last 5 years. Since inception this fund gave 20% annualized returns. If you have invested Rs 1,000 per month through SIP, in 5 years the investment would have been Rs 60,000 and your investment value would have grown to Rs 103,000. If you would have invested Rs 1 Lakh 3 years back, your investment amount would have grown to Rs 1.5 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment amount would have grown to Rs 2.8 Lakhs.
Reasons to invest: This fund performed well and gave 23% annualized returns in 5 years. Crisil Ranks this mutual fund as Rank-3 (Lowest is better) and Value Research rates this as 4-Star (Higher is better). This is one of the Top ELSS Tax Saving Mutual Funds to invest through SIP in 2018.
Top#3: Aditya Birla SL Tax Relief 96 Fund
Strategy of the ELSS fund: This mutual fund scheme aims for long term capital appreciation by investing upto 80% in equity and balance in debt related instruments.
Performance of the fund: This is the Top-3 Tax Saving mutual fund which has been consistently performing well. This mutual fund has generated 46% returns in last 1 year and 22% annualized returns in the last 5 years. Since inception this fund gave 26% annualized returns. If you have invested Rs 1,000 per month through SIP, in 5 years the investment would have been Rs 60,000 and your investment value would have grown to Rs 109,000. If you would have invested Rs 1 Lakh 3 years back, your investment amount would have grown to Rs 1.6 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment amount would have grown to Rs 2.7 Lakhs.
Reasons to invest: This fund performed well and gave 22% annualized returns in 5 years. Crisil Ranks this mutual fund as Rank-2 (Lowest is better) and Value Research rates this as 5-Star (Higher is better). This is one of the good Tax Saving Mutual Funds to invest in India in 2018-2019.
Top#4: IDFC Tax Advantage ELSS Fund
Strategy of the ELSS fund:
Performance of the fund: This is new entrant in our list which is listed now in Top 8 ELSS funds. This mutual fund has generated 55% returns in last 1 year and 22% annualized returns in the last 5 years. Since inception this fund gave 22% annualized returns. If you have invested Rs 1,000 per month through SIP, in 5 years the investment would have been Rs 60,000 and your investment value would have grown to Rs 109,000. If you would have invested Rs 1 Lakh 3 years back, your investment amount would have grown to Rs 1.6 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment amount would have grown to Rs 2.7 Lakhs.
Reasons to invest: This fund performed well and gave 22% annualized returns in 5 years. Crisil Ranks this mutual fund as Rank-1 (Lowest is better) and Value Research rates this as 4-Star (Higher is better). This is one of the Best Tax Saving Mutual Funds in India for 2018-2019.
Also Read: Best Mutual Fund Platforms to invest in Direct Mutual Funds
Top#5: Tata Tax Advantage Fund
Strategy of the ELSS fund:
Performance of the fund: Even this fund is new entrant in our tax saving funds list. This mutual fund has generated 47% returns in last 1 year and 22% annualized returns in the last 5 years. Since inception this fund gave 20% annualized returns. If you have invested Rs 1,000 per month through SIP, in 5 years the investment would have been Rs 60,000 and your investment value would have grown to Rs 109,000. If you would have invested Rs 1 Lakh 3 years back, your investment amount would have grown to Rs 1.68 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment amount would have grown to Rs 2.7 Lakhs.
Reasons to invest: This fund performed well and gave 22% annualized returns in 5 years. Crisil Ranks this mutual fund as Rank-1 (Lowest is better) and Value Research rates this as 5-Star (Higher is better). This is one of the Best ELSS Mutual Funds to invest in 2018-2019 in India.
Top#6: DSP BR Tax Saver Fund
Strategy of the ELSS fund: The mutual fund scheme aims to generate medium to long-term capital appreciation from a diversified stock portfolio of equity and equity related securities along with tax savings.
Performance of the fund: This mutual fund has generated 38% returns in last 1 year and 21% annualized returns in the last 5 years. Since inception this fund gave 16% annualized returns. If you have invested Rs 1,000 per month through SIP, in 5 years the investment would have been Rs 60,000 and your investment value would have grown to Rs 105,000. If you would have invested Rs 1 Lakh 3 years back, your investment amount would have grown to Rs 1.6 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment amount would have grown to Rs 2.6 Lakhs.
Reasons to invest: This fund performed well and gave 21% annualized returns in 5 years. Crisil Ranks this mutual fund as Rank-3 (Lowest is better) and Value Research rates this as 4-Star (Higher is better). This is one of the Top 10 Best ELSS Tax Saving Mutual Funds to invest in India.
Top#7: Invesco India Tax Fund
Strategy of the ELSS fund: This mutual fund scheme aims to get capital appreciation and provide tax saving to fund holders.
Performance of the fund: This mutual fund has generated 38% returns in last 1 year and 21% annualized returns in the last 5 years. Since inception this fund gave 16% annualized returns. If you have invested Rs 1,000 per month through SIP, in 5 years the investment would have been Rs 60,000 and your investment value would have grown to Rs 101,000. If you would have invested Rs 1 Lakh 3 years back, your investment amount would have grown to Rs 1.5 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment amount would have grown to Rs 2.6 Lakhs.
Reasons to invest: This fund performed well and gave 21% annualized returns in 5 years. Crisil Ranks this mutual fund as Rank-3 (Lowest is better) and Value Research rates this as 3-Star (Higher is better). This is one of the Best Tax Saving Mutual Funds to invest in 2018-19.
Top#8: Franklin India Tax Shield Fund
Strategy of the ELSS fund: The MF scheme aims medium to long term growth of capital along with income tax rebate. This scheme invests in equities and it has good exposure to PSU Bonds, debentures and other debt related instruments.
Performance of the fund: This mutual fund has generated 31% returns in last 1 year and 19% annualized returns in the last 5 years. Since inception this fund gave 24% annualized returns. If you have invested Rs 1,000 per month through SIP, in 5 years the investment would have been Rs 60,000 and your investment value would have grown to Rs 100,000. If you would have invested Rs 1 Lakh 3 years back, your investment amount would have grown to Rs 1.4 Lakhs. If you would have invested Rs 1 Lakh 5 years back, your investment amount would have grown to Rs 2.4 Lakhs.
Reasons to invest: This fund performed well and gave 19% annualized returns in 5 years. Crisil Ranks this mutual fund as Rank-3 (Lowest is better) and Value Research rates this as 3-Star (Higher is better). This is one of the Best ELSS Mutual Funds to invest now in India.
Also Read: Top 10 Mutual Funds portfolio of largecap, midcap and balanced funds
Summary of all Top 10 ELSS Mutual Funds of 2018-2019
How to buy ELSS funds online?
These are like any other mutual funds. You can login to your mutual fund account and create SIP or invest in lumpsum to buy ELSS funds online.
Should you invest lumpsum or SIP in ELSS Mutual Funds?
No one can time the market. Hence it is always better to invest in ELSS Mutual Funds through SIP. If you cannot invest for 1-2 years, you should atleast for a period of 6-9 months. You can also invest in lumpsum, however, invest for a longer period of 5- 8 years in such case.
Conclusion: If you are looking to save tax savings u/s 80C and want to get highest returns, you should invest in these Top ELSS Tax saving mutual funds.
All the best for your tax saving in 2018-2019 !!!
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Suresh
Top 8 Best ELSS Tax Saving Mutual Funds to invest for 2018-2019
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Why is Reliance Tax saver on top of the list? It isn’t at all a consistent performer. I have invested in Reliance Tax Saver, Aditya Birla Tax Relief 96 and Axis Long term equity , that is basically top 3 funds in this list.
Also to mention invested in all 3 in the same day in the market more than 3 years back.
Tax relief 96 and Axis Long term equity are giving 12-13 percent annualized returns while Reliance Tax saver is giving just 5 percent.
Have monitored it since investment but it has never beaten the other two. Not sure how it worked for you.
Hello Vrushanka, Mutual fund investments should be done with 5-10 years perspective. If you observe, Reliance Tax Saver gave 24% annualised returns in the last 5 years and 17% annualised returns in the last 10 years. If you invested, you should hold atleast for 5 years to get good returns.
I went over many types of mutual funds and found the ELSS to be highly beneficial as it enabled me to bring down taxation amount. Also I found the amount returned at the end of the three year lock-in period to be significant. The only drawback is that I cannot take out the money in the middle of the investment period unlike what can be done in an open-ended policy.
I agree Jignesh
dear sir,
many thanks for your valuable analysis.
Some experts are of the opinion that ELSS funds are the best among the MFs, as its growth rate is very high.
is it always true? Looking for your early reply.
Hello Kaushik, ELSS Funds are good because they have 3 year lockin period and fund manager for bet on medium term instead of shor term to medium term. Hence ELSS funds generally perform well. However one should invest in diversified portfolio of ELSS funds, midcap funds, largecap funds, smallcap funds and balanced funds so that they can gain in various market cycles
HI Suresh,
I saw mixed feedback on the Reliance ELSS fund. Its current rating on Value research is 1 star.
Would you recommend any other fund as strongly as that one.
Regards
Hi Rakhi, You can invest in any other funds indicated in this article. Generally i advice to invest in 2-3 funds so that if one such fund is not performing well, you can still get good returns in other funds
Hi,
I’m already investing ELSS in
Axis LT equity fund
Dsp black rock tax saver
Aditya birla SL tax relief 96
So I need to increase the investment in this itself or i need to go for any new funds.?
The funds you are already investing are good funds. Hence you can continue to invest in existing funds
hii.. Im thinking about investing in Aditya birla sun life tax relief 96 about 3000/-
Im a new comer.
Should i go wid it or split into 2 mf i.e. 1500/-each into ABSL & Axis long term equity (ELSS)
My advice is to invest in 2-3 ELSS funds
Should I go wid ABSL TAX RELIEF 96….3000/- PER MONTH??
I am new comer.
Hi Rajkumar, You can invest in any of the tax saving funds indicated in this article
Thank you for sharing such valuable information about ELSS funds.This is going to help me a lot.Hope you will keep on posting to update us.
Thank you Akhilesh
dont we have tax benefit under sip elss mutual funds ?please explain.To invest in lumpsum what is the minimum amount ?
If are investing in these ELSS funds, you can get tax exemptions. Minimum amount is Rs 1,000 / Rs 5,000 depending on the scheme
sir can we also consider motilala oswal long term equity fund for better return
Hi Munish, This fund came 3 years back. While the performance is good, invest in funds which has proven record of over 5 years.
Many thanks Sir.
it seems like u have taken reverse of the ratings by crisil or vronline…..i am not able to understand why. what is the ranking criteria. like tata and idfc are low where as reliance and axis are high??
I invested one lac rupees in ELSS, HDFC tax saver DP- Growth today, i had no idea about mutual fund so i invested in random fund. however now i'm feeing sad beucase there are other better funds available eg Aditya biral sun, IDFC etc.:(
Hi Mr Suresh!
It was a very informative article. Thank u!
I want to invest 1 lakh in ELSS before 30 March 2018. Can I invest the whole amount in an ELSS at one time?? What will be the options to continue the ELSS in next year? Will i need to invest 1 lakh next year in March again or can I convert it into SIP from April 2018 onwards??
Thanks
Ravi
Hi Ravi, Since you are in hurry now, you can go ahead and invest lumpsum. From next year, plan from Apr-2018 itself and invest thru SIP so that you can benefit to maximum extent.
I want to know how the tax calculations would be for SWP bandhan or other equity based open endd mutual fund with SWP
Dear Suresh,
I have been investing Axis Long Term Equity Fund Direct(G) plan for last one year via SIP mode, however I don't see this fund is performing as per my expectation. As of now I can only see a growth of 2%.
Shall I countinue to invest in Axis Long Term Equity Fund or should I opt for another ELSS.
Regards,
Chandan
don’t worry about short term flucutations. It is good fund, stay invested
Dear Suresh,
Thank you for this well explained article.
I was wondering if it was a good idea to split my investment (around 1 lakh) in 3 to 4 different mutual funds (ELSS)?
It would be the first time I am investing in a MF and I am thinking it might be a little less risky to invest in several MFs rather than only 1?
What is your opinion on that?
Thank you for your help.
Rakesh
Good idea Rakesh. Instead of investing in 1 fund, go for 3-4 funds
Hello,
Thank you for this article!
I was wondering if spliting my investment (lump sum ~1 lakh) into 3 tor 4 different MFs was a good idea?
Thanks
Should I invest in existing mutual funds or in NFO , considering the present market scenario. Which is a better option ? Currently the markte is low.
go for existing mutual funds
Is this one / three years return is on NAV ?
My wife and I would like to invest Rs.150000 each in tax saving mutual funds before 31 March 2018. Kindly advice us a couple of the best nd safe funds immediately.
Hi Hussain, The funds indicated in this article are good, you can invest in any of these funds
Why one year return is high.. is it possible to left end of one year.. other than elss can we go for other funds.. which will help for tax exemption… kindly help
You cannot withdraw after 1 year as there is lockin period of 3 years.
I went on to compare the results of IDFC tax advantage ELSS fund on their website, results are posted differently when compared to your article. please suggest as i am confused .
Thanks suresh garu.
Hi Abhi, This article was posted few months back, hence if you are comparing with current returns, there would be mismatch.
Which Tax Savings MF is good for 3years???
If I want to Invest in ELSS through SIP and take out my Money after three years. What should be my Invest Ment Period
Scenario-1
Investment Start- 01-March-2018, SO investment in ELSS has Lock In period, As I am investing through SIP, I have to Invest up to 01-March-2021 or I can stop after 1 Year.
Thanks In Advance.
Akash
Hi Akash, Every year ELSS funds, you would get tax benefit. e.g. Apr-18 to Mar-18 – 12 months – Rs 12,500 per month would give you Rs 1.5 Lakhs of tax benefit. If you wish every year, continue the same
Hello,
I am investigating for the long term(8 years).
I have just started investing in following MF.
1.Axis long term equity fund regular G (ELSS)-Rs. 1000.00
2.Birla Sun Life Tax Relief 96 (ELSS)-Rs. 1000.00
3.DSP BlackRock Tax Saver Fund (ELSS)-Rs. 1000.00
4.Reliance Tax Saver Fund (ELSS)-Rs. 1000.00
Please suggest me and my portfolio is good or not.
Thanks,
Vaskar
good funds Vaskar.
Thank you
I have one more query I have been investing Rs 500 in HDFC Balanced Fund, Rs 500 each in HDFC Prudence Fund-Growth,500 Franklin India High Growth Companies Fund and Franklin India Prima Plus since 2016. Is my portfolio good? I want to invest Rs 4,500 extra in mutual funds. Can I increase the amount in my current portfolio? My horizon is 20 to 25 years, with medium risk.
hi,
I have my investments as under
60000 in NPS and 25000 LIC
now I am left with 65000 more to invest under 80C .Since 2 months are left in this financial year.Should I go for PPF or for ELSS .Now there is no time for small SIPs .Next year I am planing for SIP ..For this year what's your suggestion .My age is 26
I have to save tax for FY 17-18. I can show House Rent, LIC and Health insurance in investments amounting Rs 1.30lakh in 80(c). I am planning to invest in mutual funds (ELSS). Should I start SIP or invest lumpsum? Also, suggest funds to invest lumpsum and SIPs for next three years. Thanks
Hi Ashish, House rent is part of HRA and not part of 80C. Also health insurance is part of 80D and not 80C. LIC insurance is part of 80c. You can invest in ELSS mutual funds thru SIP as markets are in volatile mode. Invest in any of these tax saving mutual funds indicated in the article
How is the Motilal Oswal ELSS compared to the ones you’ve mentioned.
Hi Suresh,
I do have SIP’s running for other MF’s but for ELSS MF’s I was advised to invest in lumpsum reason being there is a lock in period for 3 yrs here and if done in an SIP format then at the time of withdrawal would be able to withdrawn only the total sum that has matured (3 yrs) and not the entire amount.
Your post encourages to do an SIP in case of ELSS MF’s too. Can you please explain this to me as I am a little confused how is SIP better then lumpsum in ELSS funds too just as in the case of other MF’s.
Thank you.
A regular follower of your blog.
good question Avanti. Let me take an example. in Jan-18 most of us might have done tax planning and say you would have invested Rs 1.5 Lakhs in ELSS funds. If market goes down in next 1 year and again recovers in next 2 years. Your lockin period ends in Jan-2021 and you might be thinking of exiting from them for some reason. You would get low returns. If you would have invested Rs 15,000 per month SIP in ELSS funds from Apr-17 to Jan-18, your money would have invested when markets are going up or down and your investment would have benefitted with average price. If you want to invest in say 10-15 years, you can still invest in lumpsum. However instead of ELSS funds you may choose large cap or diversified funds for such long term. Most of the investors would get tempted to sell ELSS funds after 3 years to re-invest again and take benefit of 80C (which even I do ideally). In such case investing in SIP makes sence instead of lumpsum.
Thank you for the clarity. Much appreciate.
Regards.
Avanti.
Hi suresh,
I am a big follower of ur myinvestmentideas.com.
Can I invest through Lumpsum mode for 2017-18 in these ELSS funds?
Alternately how can i diversify my 1.2L investment in these funds?
Please advice.
My advice is you should do it thru SIP or atleast in 3-4 lots. For this year, since there is no time, you can go ahead for lumpsum. However for FY2018-2019, you should start your SIP starting from Apr-18 itself so that you get maximum benefit from mutual funds
can you send the boolet like the benefits and loss of different sheme?
Can you please suggest, should I invest in these funds for the sake of investing only and not tax saving (as I already have a ppf account), would that be advisable?
Hi Abha, The purpose of the article is very clear. One for tax saving and second to get highest returns among all tax saving shemes. Hence you should proceed by picking up some of these best tax saving funds for 2018
Hi,
Need one clarity on dividends coming through ELSS funds? Are they taxed and if so then at what rate?
Thanks.
Dividends from mutual funds or stocks are not taxable in your hands. Necessary tax is already deducted by Mutual fund companies, hence don’t worry
thanks for the ideas,
I have a SIP on “DSP black rock” and “BNP paribas” (10k inr each), should i invest this month “jan’18”, or wait for a correction? as the markets are on the highest.
Happy investing to all!
regards,
nithin.P.M
If you are investing in lumpsum, you can invest in 3-4 lots. If you are investing thru SIP, no need to wait for anything
Hi Suresh,
Thanks for nice article.
For tax exemption am investing in two ELSS funds as SIP
ICICI-ICICI Prudential Long Term Equity Fund (Tax Saving) – Growth(4k)
RELIANCE TAX SAVER (ELSS) FUND – GROWTH PLAN – GROWTH OPTION – GROWTH (2k)
Is it recommendable to go another ELSS or increase in the SIP amount is suggestable?
Apart above ELSS am investing in few funds, pl suggest whether portfolio is good or any suggestions to change it
BirlaSoft – ABSL Top 100 Fund – Growth-DIRECT – (Large cap)(2k)
LNT – L&T Emerging Businesses Fund Direct Growth – (small & Mid cap)(2k)
HDFC Balanced Fund (G)(2k)
Thanks in advance,
Rajesh
Hi Rajesh, consider taking another ELSS fund. Other funds indicated are good. Stay invested.
Thanks for writing, it look good to take the decision for ELSS investment.
Can you please help me to purchase new SIP and Lumsum ELSS to save the tax in this year. Below are my investment-
1. Motilal Oswal MOSt Focused Long Term Fund – Direct Growth (10,000 lumsum) invested in Dec 2017
2. Mirae Asset Tax Saver Fund- Direct Growth (10,000 lumsum) invested in Jan 2018
3. Axis Long Term Equity Fund- Direct Growth (2000/month SIP) started since Aug 2016
4. Aditya Birla SL Tax Relief 96 (2000/month SIP) started since Nov 2017
5. Reliance Tax Saver ELSS Fund- Direct Growth (2000/month SIP) started since Dec 2017
I am intrested to invest 2000-3000 per month in SIP & 10-20K for Lumsum, Kindly suggest where i can invest the same. Thanks
Hi Sanjay, you can go ahead and invest thru lumpsum or SIP in the funds I indicated in the article.
Hello Suresh,
I would like to invest Lumsum 50k amount in ELSS tax saving MF schemeeach year for 5 years. Which ELSS MF scheme is best to invest for Lumsum amt and Is it good time to invest in january 2018 to avail tax benefit under 80c for Financial Year 2017-1018. If you have other possible way then Please suggest me. Thank you.
Hi Amit, We cannot time the market, hence I always advice to invest through SIP. However, since you don’t have an option now as you are looking for tax saving, you can go ahead with ELSS funds. Next year onwards, you should plan ahead and invest say Rs 5,000 per month for 10 months from Apr-2018 to Jan-2019 so that you get tax benefit + you are investing over a period of time which can benefit you.
Thanks a lot, Suresh for your advise. I had invested 3L each in Hdfc prudence, DSP balanced fund and L&T prudence. Being a Sr Citizen I am looking for monthly pay out.
If I want to invest some more should I look for investing in ICICI similar fund? However L&T prudence return is comparatively much low as compared to others.(0.13ps per unit). Appreciate your kind response.
Regards
Amit
Hi Suresh,
Thanks for sharing articles ,I am following your website from last 9 months learnt manythings ,I was started investing in MF from Jan 2017 so far invested in below funds can see 8% growth
Axis Long Term Equity Fund – Growth -Rs 50000/-
Axis Liquid Fund – Direct Growth – Growth -RS 30000/-
Reliance Small Cap Fund – Direct Plan – Growth Plan-RS 10000/-
SBI Blue Chip Fund Direct Growth RS 10000/-
Now I would like to go for 10,000 monthly SIP for 3- 5 years please suggest good funds to invest and So far I invested in direct plan now I am not able to decide whether I can start SIP with direct AMC or Other platforms like Funds India is there in impact on profit for 3- 5 years
Good to hear that JP. The funds selected by you are good. If your investment horizon is just 3-5 years, you may or may not get good returns. However if you still want to proceed, you can invest in balanced funds like HDFC balanced fund or ICICI balanced fund etc., But I would advice you to go for 5-8 years atleast and invest in balanced funds.
How about L & T Tax Advantage Fund Performance ?
It did not feature in your list ?
Where it stands in Crisil ranks and Value research online ranking >
Regards
Amit
Hi Amit, this too is a good fund. However, my list contains consist performers over a period of time, hence it was not figuring out. You can still invest
Hello Sir,
How is Mirae asset tax saver fund – direct?
It has given 48.9% return in last 1 year. I am investing in it. Shall i continue?
Best regard,
Deeps
Hi,
I did not understand your statement :- “Crisil ranks this mutual fund as Rank 3 (Lowest is better and value research ranks this mutual fund as Rank 3 (Highest is better)” . What does this mean?
Hi Rohan, Crisil ranks in the range of Rank-1 to Rank-5 (Lowest is better). However Value Research Online ranking is other way round. It should be 5 Star to 1 Star. 5 Star is good and 1 star is bad (means highest is better).
Thank you !
One more thing…as the FD's have become lack luster , Can you please provide some information on where should the investors ( Young and Sr Citizens) park their money once FD is matured? Also, if this money is to be parked in Debt Mutual Funds then which Debt MF (Liquid / Short / Long Term?)
Also, is it advisable to keep entire matured amount in these Debt MF or should be scattered accross different Debt Funds instead of only one?
One last thing, as the MF / Stock investments are mostly for long term the size of the portfolio tends to grow over a period of time. So could you please tell the group here which is the best online portfolio monitoring tool that can help us to monitor our investments or Which tool do you use that would be great !
Thank you for your time and patience.
– Rohan
Hi Rohan, My advice is that one should diversify and invest in 3-5 debt funds instead of parking money in just one fund. There are several tools to monitor your portfolio, many has its own positives and negatives. You should consider the portfolio tracking where you are investing. e.g. i invest thru icicidirect and i track portfolio statements available in icici direct which is useful.