Re: Need suggestions in choosing Tax Saving MF
Yes, they are heavily with mid-caps or below. But I have problems with the variety of ELSS funds on offer.
There is no single ELSS that is an index fund. If there is, we will pay less yearly fees and wont rely on fund managers performance, but of the market performance. Also there iis no pure mid cap funds from Big AMC's.
Having searched for Mid cap funds with my criteria being "Not any stock that I hold in large cap" (I mostly hold stocks in nifty-50 only for liqudity & better stock margin while pledging for F&O), I know that many funds failed my criteria except ING.
I use money control's portfolio and check out atleast top 20 stock investments of funds to see whether it overlaps my stock portfolio greatly.
ING's ZIP pack is very interesting and I decided put some in it. All top 20 investments of ING was not in my portfolio. I thought, ok this is the fund where I am comfortable paying a fund manager a 2% annual fee because some of the stocks were quite new to me. It may/may not out-perform, but it helps me to diversify portfolio.
It is good that some of us have consciousness of how we want to diversify. Most fund advisor's I met are horrible. They think investing in "Top 3 funds" is the best diversification.