Top Tax Saving Mutual Funds (ELSS) 2010

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.

HDFC Taxsaver

NAV 191.858 (18/12/09)  EXPENSE RATIO 2.06

NET ASSETS  (Cr)2,002.26 (30/11/09)

This is  a relatively good safe performer over the long run  with a decent consistent track record for the past 3 years.

Canara Robeco Equity Tax Saver

NAV 21.14 (18/12/09)  EXPENSE RATIO 2.50

NET ASSETS 71.19 (30/11/09)

This is a slightly aggressive fund managed by Mr Anand Shah since Sep – 2008, and shows good returns.

Magnum Taxgain

NAV 55.85 (18/12/09)EXPENSE RATIO 2.5

NET ASSETS  (Cr) 4,999.93 (30/11/09)

One of the best Tax savings funds over the long term, this fund is a behemoth that has A group scripts as its top holdings, and a large cap heavy pf.  This is a good fund for investors that choose diversification and  safety over returns.

Sundaram BNP Paribas Taxsaver

NAV 40.9593 (18/12/09)  EXPENSE RATIO 2.24

NET ASSETS 1,214.02 (30/11/09)

Fund has a good performance record for the last 3 years, has a good portfolio/sector mix  and has come out yet again as a leader in its class.

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2 thoughts on “Top Tax Saving Mutual Funds (ELSS) 2010

  1. As you said, it is not a wise option to invest in ELSS Mutual Fund when the markets are at high level. What best option do I hv to invest for tax saving with my still higher risk taking capacity.

    Pls advise

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