Top Tax Saving Mutual Funds (ELSS) 2011

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.

Fidelity Tax Adv-G

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 .

Canara Robeco Equity Tax Saver

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.

HDFC Taxsaver

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

Axis Tax Saver-G

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.

Sunderam Taxsaver

Magnum Taxsaver

BSL Tax plans

and not to forget JM Taxgain.

Check out my latest update:

Top Tax Saving Mutual Funds (ELSS) 2012

This post is a follow up to

Top Tax Saving Mutual Funds (ELSS) 2010


2 thoughts on “Top Tax Saving Mutual Funds (ELSS) 2011

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s