Soon after the finance ministry cleared the haze on tax treatment of equity linked savings scheme, fund managers are lining up such policies to tap investors eager to participate in the stock market boom and simultaneously save tax. \n
Consider tax saving funds -- their average annual return over the past five years has varied from 16% to 108%.
Being an ELSS, it offers deduction under Sec. 80C
Mutual funds, especially the tax saver variety seems to be on a roll. Here's the list of top 10 ELSS mutual funds for the period ending September 28, 2007. These ELSS funds have made more money for you than the Sensex gains.
Do you know of some good equity linked saving schemes that will not only help you save taxes but give decent returns. Get Ahead tax expert Mahesh Padmanabhan tells you about these and how to plan to save your taxes.
Pru Dynamic, Reliance Diversified Power Sector Fund, Pru Services Sector Fund/ Infrastructure Fund, Templeton Prima or Reliance Growth Fund can give you high returns in the next 3-5 years feels mutual fund expert T Srikanth Bhagavat.
Two tax-saving funds that you might consider investing in. Here are their salient features.
It is a close-ended plan for a period of three years from the date of allotment of units, and will be converted into an open-ended one at the end of this tenure
ELSS, in general, is one of the best options among the instruments eligible for tax benefits under section 80C both in terms of potential to grow as well as tax efficiency of the returns.
ELSS have a long and proven track record, which is missing in ULIPs
That's what ELSS investments have to offer, coupled with other benefits.
The fund offers deduction under Sec. 80C and the minimum lock-in period would be three years as in any other ELSS.
HSBC Tax Saver Equity Fund too offers deduction under Sec. 80C
When you conduct a tax-planning exercise, ensure that you look beyond just the returns while selecting a tax-saving fund.
It's time to start planning your tax investments. Here are some new tax saving funds funds that have hit the market.
Our advice for investors -- opt for funds like HDFC Long Term Advantage and HDFC TaxSaver which have proven track records to show for, over longer timeframes.
Home loan interest rates are likely to increase in the next six months. Should this be a cause enough for you to prepay your home loan?
So how does one go about comparing ULIPs vis-à-vis tax-saving funds? An illustration will help in putting things in perspective.
Do not put all your funds into a single scheme; have a mix of fund houses as well as schemes.
The choice of income tax saving instruments is important, but now you have to identify tax efficient investment options
One investment that must be on the top of your list -- if you are a high-risk investor -- is the tax-saving fund.
Rediff reader Tushar Kulkarni, 40 from Dombivali shared some valuable tips.
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