Its almost tax season so here goes
Choosing a good mutual fund is a tricky business, especially when many factors such as the ur timing, the fund manager, his mandate, the investment style, the track record etc affect their performance. Even if u invest now there is no guarantee of getting a great return after the 3 yrs lock-in as per 80C.
Please note that investing in equity or equity mfs in these uncertain times can be a bit risky. Please break up ur investments and dont invest in lumpsome especially when markets are up. I also recommend that one invest in a basket of MFs, especially at market dips. The funds are chosen on the basis of a decent portfolio and consistant returns rather than very high returns. That said here are my top Tax Saving Mutual Funds.
NAV 22.23(11/01/11) EXPENSE RATIO 1.99
NET ASSETS (Cr)1,282.87 (31/12/10) Manager >Sandeep Kothari
This is now performing consistantly for the last 2 yrs. The fund manager likes Financial s, Cons Goods and Healthcare . It has 22% appx in small and midcap stocks.
As mkts have been up i recommend this one over hdfc taxsaver for the current yr .
NAV 26.07 (11/01/11) EXPENSE RATIO 2.38
NET ASSETS (Cr)231.47 (31/12/10) Manager >Anand Shah
This is now a consistent fund since its inception in Sep - 2008, and shows good returns. It has become less aggressive over the last yr with 33% appx in small and midcap stocks.
NAV 235.94 (11/01/11) EXPENSE RATIO 1.86
NET ASSETS (Cr)2,937.39 (31/12/10) Manager >Vinay R. Kulkarni
This is a large fund, a relatively good performer over the long run with a decent consistent track record for the past 5 years. Their expense ratio is down over last yr but mind u their pf has become more aggressive and consists of 40% appx of small n midcap stocks which helps it outperform in upward trending mkts but midcaps tank when mkts go down.
ICICI Pru Tax Plan (G) is also a fund to watch , a good fund but not a very consistant fund
NAV 136.01 (14/02/11) EXPENSE RATIO 1.97
NET ASSETS (Cr)1,320.28 (31/12/10) Manager >Sankaran Naren / Rajat Chandak
New Kid on the block
NAV 12.298 (11/01/11) EXPENSE RATIO 2.5
NET ASSETS (Cr)48.23 (31/12/10) Manager >Chandresh Nigam
It has a yr 23%return and 23% appx in small and midcap stocks and is large cap heavy.
Funds to dump
These are old horses or funds that have faltered and fallen short on performance. if you have them think of selling or exiting them especially because mkts are up.
BSL Tax plans
and not to forget JM Taxgain.
Check out my latest update:
This post is a follow up to