It's time for you to start planning your taxes for the current year. Why so early, you might ask? Well, for one it will lighten your 'investment load' towards the end of the year. And two, given the time that is available, you can actually plan out what is best for you.

One investment avenue which saves you tax is tax-saving funds (also termed ELSS, or equity-linked savings scheme), offered by various mutual funds. Although comparable with regular equity mutual fund schemes out there, one fundamental difference sets these schemes apart -- a mandatory lock in for three years.

Another key differentiator is that tax-saving funds invest all their monies in the stock markets and therefore can be very volatile in terms of generating a return. Indeed, a poorly thought out decision could saddle you with a loss.

It is therefore very pertinent that you study the options available in the tax-saving funds segment before committing monies to any one or more schemes. In a recent article we discussed the 5 tips for investing in an ELSS.

At Personalfn we research mutual funds. Well, this may seem odd as most of us tend to associate the word research with just companies and stock markets. But then just like you go about researching a company or a stock market, we do research on mutual funds.

We study the track record of promoters and fund managers, the performance with respect to the benchmark indices and peers and also certain factors like volatility and risk adjusted return. However, the research is not just about number crunching; there is a lot more to it.

Our most recent report in the FundSelect, our mutual fund research service, is on HDFC [Get Quote] Tax Saver, an ELSS. You can read the report here. FundSelect is our premium research offering and the reports are only made available to subscribers.

When you have read the report on HDFC Tax Saver, you will have a fair idea on the extent of study that is required to select a tax-saving fund. If you do not have the spare time to do it on your own, you have two options:

Subscribe to research, like the FundSelect or opt for an investment advisor who will furnish you research backed independent advice

Either way, be sure to do your homework. Since it is your money that is involved, you should explore all options in as great a detail as possible.

Question your advisor on his/her recommendations. The fact that a lot of advice these days is driven by commissions should not surprise you. Instead, it should lead you to take responsibility for what is anyways your own -- your money.

Investing to save tax? Personalfn can help you. To benefit from ideas that work in your interest, click here.

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