This is probably the last yr for tax savings or ELSS mutual funds considering the UPA governments goal to introduce DTC soon. As of now, if one invests wisely Equity based investments and gold based investments would still perform better than FD Returns.
Post DTC rather than stop looking at MFs one can switch to investing in a mix of funds that include Gold ETFs, Large Cap Funds and Large and MidCap funds .
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.
Canara Robeco Equity Tax Saver
NAV 17.54 (17/02/12) EXPENSE RATIO 2.33
Manager >Soumendra Nath Lahiri
Since: Apr – 2011
This is now a consistent fund since its inception in Sep – 2008.
Axis Long Term Equity Tax Saver-G
NAV 12.82 (17/02/12) EXPENSE RATIO 2.46
Manager >Chandresh Nigam
NAV 228.67 (17/02/12) EXPENSE RATIO 2.07
Manager >Vinay R. Kulkarni
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