Wednesday, February 25, 2015

ICICI Prudential Tax Plan

The scheme seeks long-term capital appreciation by investing approximately 90 per cent of the investments in equity instruments, while the balance 10 per cent would be a parked in debt and money market instrument and cash ( Including-money at call).

 

ICICI Prudential Tax Plan has been rated a five-star performer. The fund has beaten its benchmark by over 7 per cent in various periods, like one, three and five years. In fact, after a sluggish start 15 years ago, it has outperformed its benchmark in the next ten out of 12 years. The fund has managed to perform in both bear and bull phases in the market and consistently stayed ahead of its peers most of the time in its long existence. The consistency in performance, along with a portfolio that favours large-cap stocks, makes it a suitable bet for conservative investors. However, the low-risk profile hasn't stopped the fund from finding a place among the top performers in the tax-saving category. Investors also seem to have placed tremendous faith in this fund as its asset under management has gone up in the last two years. It is the fifth largest fund in the tax-saving category. The portfolio of the fund has stocks across sectors and market capitalisations, picked up on the basis of cheaper valuations and their potential for future growth. The fund makes it a point to avoid stocks that don't meet its valuation parameters. It also makes good use of the mandatory three-year lock-in period by investing in mid-cap stocks without worrying about their near-term performance. The strategy of holding onto right mid-cap stocks without bothering about their short-term performance has helped it to offer better risk-adjusted returns. The fund doesn't have redemption fears, which is an added advantage for it.


Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1.ICICI Prudential Tax Plan

2.Reliance Tax Saver (ELSS) Fund

3.HDFC TaxSaver

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.IDFC Tax Advantage (ELSS) Fund

9.Axis Tax Saver Fund

10.BNP Paribas Long Term Equity Fund

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

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