Best ELSS(Tax saving mutual funds)

[MFadvisor]

Re: ELSS Help

Reliance Growth Fund
SBI Contra Fund
HDFC top 200 fund
Fidelity Equity fund

MFAdvisor
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[m.saurabh]

Re: ELSS Help

Hello Everyone,
I am kinda new to Mutual fund. I want to invest 5000/- pm through sip in ELSS, please suggest 3-4 best performing MF with moderate risk.

ELSS generally are high risk investments,as they have most of their money in equities, with a lockin period of 3 years ,so read carefully about any funds before investing.
Regards,
Saurabh

 

[MFadvisor]

Re: ELSS Help

SBI Magnum Tax gain
Fidelity Tax Advantage are good ELSS schemes

 

[ranj_2k]

Re: ELSS Help

Looking into current economic boom of india, ELSS is one of the best option for tax savers. ELSS with moderate risk are - SBI Magnum Tax Gain and HDFC Tax Saver.

 

[mitr_ashoo]

Re: ELSS Help

thanks every one ..i did some research on net and sorted few funds for investing : Personal Tax saver:1.5k/month, SBI Magnum Tax gain :2k/month, Birla sun life tax relief-96:1.5k/month, HDFC tax saver(this yr its not doing so good) . I want to invest in 3 funds ...plz suggest , is my list ok? ..i don't wanna take high risk .Regrading Birla sun life , i found that they are giving high dividend ..is this fund ok for me ?

 

[Vicky78]

Re: ELSS Help

Good selection!

 

[ranj_2k]

Re: ELSS Help

If you do not want take risk Magnum Taxgain and HDFC Taxsaver would be a good bet. High dividend is also distributed from NAV only and NAV will be reduced accordingly by than amount. Once should not consider high dividend a criteria for selection of MF. Growth in NAV over a period matters.

 

[Vicky78]

Re: ELSS Help

Yeah dividend is no big deal... I read a quote about MFs dividend "When corporates issue dividend the it pays from the company's pocket to the investors pocket. When MFs pay dividend they pay from the investors left pocket to the right pocket"

 

[mitr_ashoo]

Re: ELSS Help

Its true that when dividend get announces, NAV falls down. But in a way its ok, if somebody want that money before 3 yr .Theoretically you get tax benefit and you get some amount of money in between 3 yr.

 

[yoogi]

Re: ELSS Help

Dear Vicky,

how are you doing?

when corporates pay dividends, its actually from our pant pocket to shirt pocket.

Dividend is the same whether it is from a corporate (stock) or from AMC (fund).
Its our money, put to use and then paid back when there is profit to enjoy. Share price or NAV definitely incorporates the divident or bonus. In stocks the dividend is so small (1 rs dividend for a 300 rs Zee TV for example..) that its effect on stock price is almost negligible. But when bonus is announced the share price does respond accordingly.

When corporates are in aggressive investment mode, they dont pay dividends. When dividend is around the corner, you can see the future contracts of that stock being discounted.

when there is dividend the company's cash decreases (probably book value, I;m not sure.) and that will be reflected in share price. (just like bonuses..).

Tax treatment of dividends from both are quite different.