Thursday, December 10, 2015

ELSS Funds

 
 
 Most investors start thinking about tax planning only at the end of the financial year and to tap this demand, several fund houses are lining up equity tax saving funds or equity linked savings schemes (ELSS). As of now, four fund houses -DHFL Pramerica, M i r a e A s s e t , P e e rl e s s a n d Sundaram -are in the market with ELSS new fund offerings (NFOs).

If you have not done your tax planning for the year, ELSS is the best option for various reasons. Since equities usually generate better returns in long term, ELSS will help you not only to save tax but also generate long-term wealth. This is the only tax saving instrument which provides participation in the stock market upside.

Another advantage is the smaller lock-in period. While most instruments under Section 80C carry a fiveyear lock-in period, these funds come with a three-year lock-in period.

ELSS should be the preferred tax-saving investment for a five-year or higher time horizon, as it allows investors to invest regularly by setting up a systematic investment plan (SIP) in the scheme. Any balance remaining in Section 80C basket after the housing loan principal repayment, if any, and mandatory EPF contribution should be directed towards ELSS

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. IDFC Tax Advantage (ELSS) Fund

4. ICICI Prudential Long Term Equity Fund

5. Religare Tax Plan

6. Franklin India TaxShield

7. DSP BlackRock Tax Saver Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. HDFC TaxSaver

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Good Returns by Investing in ELSS Mutual Funds Online

Invest in Tax Saver Mutual Funds Online

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For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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