Top Tax Saving Mutual Funds (ELSS) 2009

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Top Tax Saving Mutual Funds (ELSS) 2010

As it is investment season and people are desperate to save from that dreaded taxman and invest in instruments classified under Sec80c , here are my top 3 Tax Saving Mutual Funds.

Please do ur own research before u come to a decision and don’t blame me if they don’t perform according to ur expectations. Earning good returns is a tad bit tough with mutual funds, especially if ur entry is timed at a market peak and exit at a trough, and itsn’t as easy or as safe as Mr Chidambaram wants u to believe, especially if u have held a mf for 5 +yrs and seen a negative return on capital.  Also note due to the market crash most mutual funds have lost loads of money on investments made during last 2 yrs and some have even lost more than half of the capital invested.* standard disclaimers apply.

Sundaram BNP Paribas Taxsaver

NAV 22.56  EXPENSE RATIO 2.24

Fund has a good performance record for the last 2 years, has a good portfolio/sector mix  and has come out as a leader in its class.

Magnum Taxgain

NAV 28.5 EXPENSE RATIO 2.5

One of the best Tax savings funds over the long term with a good pf and a consistent track record but a slightly higher expense ratio than the market.

Franklin India Taxshield

NAV 94.68  EXPENSE RATIO 2.24

Fund is slightly more risky and does not have a consistant performance but has performed better than its peers in the current downturn.

HDFC Taxsaver

NAV 90.95  EXPENSE RATIO 1.98

This is also a relatively good performer but has been hit by the current downturn.

Also watch out for DSPML Tax

Words of caution

Please note that investing in equity or equity mfs at this moment can be a bit risky, thanks to worldwide recession. Due to heavy uncertainty noone can time the bottom of the markets or guage the trend . Please break up ur investments and dont invest in lumpsome.


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16 thoughts on “Top Tax Saving Mutual Funds (ELSS) 2009

  1. sushil
    i have already given my views in the post as magnum taxgain.
    Be patient and invest in small chunks when the markets fall and make new lows if u are a contrarian.

  2. Dear
    Yes i also agree with you
    I have purchased this three most fund on 08.10.2008 after my own reasurch on MF i can explain how i have choose this three fund .
    first i have make table for 1 week /1month/3 month/6 month/1 year/3 year/5 year best fund and after that i find that the most top fund is this SBI Megnum-Sundram paribas-Franklin tex saving fund.
    in this reasearch i found that somewhre for sortterm that HDFC fund also coming in to picture.
    but all time best 1 to 10 fund ifound this 3 fund only.
    Also i consider my long turm means 3 years span so that at that time the first fund is found SBI Megnum second is Sundram paribas and third i consider for frenklin tex saving fund.
    Thank you
    Mahendra vadgama

  3. HI,

    Please give me a best suggestion which mutual fund is better one, in SBI Magnum and sundaram.I am going to keep this fund more than 5 years only.

  4. Krishna
    first the market could fall further and people could still loose so put in small ammounts at a time.

    Id suggest u invest in both. it is always better to diversify…

  5. For a more informed investor who has the time to research, I would recommend selecting mutual fund schemes to invest in based on the following criteria.

    1. Longterm Performance , consistency in Returns
    2. Short Term Performance (though a fund has performed well in the past, is there a let down in short to mid term performance)
    3. Performance across market cycles, like during bullish and bearish phases (how well did the fund perform during the bearish phases)
    4. Fund Corpus (When selecting midcap funds, the corpus size is very important)
    5. Fund Managers performance with the scheme(If a fund just got a new fund manager, I would observe the performance under this new manager before I select the fund)
    6. For equity mutual funds, one will also need to evaluate risk. (Exposure to midcaps, Standard Deviation of the fund)
    7. For debt mutual funds, apart from risk one also need to examine entry/exit loads and expense ratio are very important.

  6. sushil
    indeed a good list
    but the fact still remains that after commissions and other expenses most mfs sadly underperform a well diversified eq portfolio
    and a person so well researched can use his energies into direct eq investment
    ps this discussion is about elss

  7. Unit Trust of India

    As an NRI I have never found another inefficient and dull institution than UTI.Their email addresses are all to departments not personal so they can avoid responsibility.India has a reputation of ordinary mails getting lost so
    I sent them registred mails costing thousands of rupees yet they do not reply.The heads of UTI cannot organise but my advice to all is to try foreign investmets as they are efficient.It has taken me ten years to track my investmebnt which ended up in bonds.

  8. Hi,

    I’d like to make a long term investment (arnd 8-10yrs) to build a corpus for my cousin studying in school for his higher education.

    The intent is to optimize returns over long term while seeking tax benefits.

    Could you suggest me which would the ideal investment instruments–
    1) Mutual Funds
    2) Child Insurance Plans
    3) Stocks
    4) PPF/FD

    Also would appreciate if you could highlight the best plan/fund in the option you recommend and the right time when investment should be made.

    Thanks,

    DG

  9. Hi to all, how is all, I think every one is getting more
    from this website, and your views are fastidious in support of
    new viewers.

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