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Shabbir is a developer in the field of Applications, web as well as database designing and is devoted to the optimization and usability of the code. Apart from doing some Share trading he maintains SEO forum and is a C++ addict.

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Best Tax Saving Funds

August 11th, 2009 • Related • Filed Under

Image Credit : alancleaver

When it comes to Tax Saving and ELSS Funds I prefer to invest in funds where I get maximum dividend and that way I do not need to invest my full amount and also get the Tax benefit of full amount invested. Read how if you still have not read – Full tax saving without investing one lac. Now many people ask me about how to know the dividend history of funds and so for them I have Dividend History of Mutual Funds.

So now using the methods discussed in the above two articles I would list some of the best Tax Saving funds. The list of funds I have selected are based on criteria of consistent dividend for a longer period of time.

Birla Sun Life Tax Relief 96

Best Dividend ever by any Tax saver fund I know off.

Record Date	Rate of Dividend
Jun 27, 2008	50 %
Mar 25, 2008	200 %
Mar 16, 2007	500 %
Jan 19, 2007	260 %
Dec 8, 2006	250 %

Principal Personal TaxSaver

One more best dividend Tax saver fund I know off. Principal Personal TaxSaver has given probably the best dividend in the most difficult time.

Record Date	Rate of Dividend
Mar 25, 2008	400 %
Feb 26, 2008	200 %
Dec 31, 2007	110 %
Oct 30, 2007	110 %
Mar 13, 2006	100 %

SBI Magnum Tax gain

Yet another fund by SBI Mutual Fund house which has very good track record when it comes to return as well as dividend.

Record Date	Rate of Dividend
May 29, 2009	28 %
Feb 15, 2008	110 %
Mar 2, 2007	110 %
Mar 10, 2006	150 %
Jun 10, 2005	102 %

HDFC Tax Saver

Not into one of the best dividend rate like above funds but very consistent when it comes to dividend and also return of this fund is also worth investing.

Record Date	Rate of Dividend
Mar 6, 2009	50 %
Mar 7, 2008	80 %
Mar 8, 2007	75 %
Mar 17, 2006	75 %
Feb 17, 2005	50 %

Canara Robeco Equity Tax Saver

Not as good as above ones, but best when it comes to return of the fund.

Record Date	Rate of Dividend
Mar 28, 2008	30 %
Mar 15, 2007	60 %
Mar 16, 2006	40 %
Mar 18, 2005	25 %
Mar 26, 2004	15 %

Apart from the above old funds I also expect some good returns for some of the new tax saving funds which till date have not recorded good dividend but that is may be because of the current market situation for last one year or so and so they deserve mentioning.

Fidelity Tax Advantage

Record Date	Rate of Dividend
Mar 13, 2008	15 %

DSP Blackrock Tax Saver

Record Date	Rate of Dividend
Feb 29, 2008	36 %

Kotak Tax Saver

Record Date	Rate of Dividend
Feb 8, 2008	35 %
Feb 20, 2007	30 %

What next?

There Are 258 Responses So Far. »

Comment by Dr shrinivas on 11 August 2009:

Sir i\’m planning to start SIP of Rs 5000 each in Birla sun life tax relief 96 and in Principal Personal tax saver funds. Can u please help whether i should go with SIP in these funds or are there any better ELSS funds in market presently.
Comment by Shabbir Bhimani on 11 August 2009:

According to me you have selected the best in the business.
Comment by Mutual Fund on 14 August 2009:

Thanks for the Updates!
Comment by Shabbir Bhimani on 14 August 2009:

The pleasure is all mine
Comment by Sathish on 1 September 2009:

Hi Shabbir,
Its very nice to see your website especially for newbee like me. I am 24yrs and would like to invest money which would help me to save tax & get good returns. I am planning to invest 30,000 in ELSS through SIP. How and what do you suggest? Do I first buy for 20,000 and then 1000/month or…? Also what do you think about Can robeco, Sundaram tax saver & quantum tax saver? What should I see, dividend or return before investing?

Thanks
Comment by Shabbir Bhimani on 1 September 2009:

Sathish,

That was a good question and I have answered it here

Dividend or Return on Tax Saving Funds

Also I think I would prefer SIP because its too volatile for lumpsum kind of investment.
Comment by dr swapnil nagvekar on 17 October 2009:

hi shabbir
iam seen ur website .its great site .i wanted to knw which shares of hdfc should i buy .are hdfc warrent shares fine?which are the best shares t buy in banking section .

tahnks
Comment by Shabbir Bhimani on 17 October 2009:

I am not sure what you meant by which share of HDFC but there are two of them one is HDFC and other is HDFC Bank one is financial body and other is bank respectively. You can buy any but at the current level consult your advisor if you should be buying or not.

Regarding banking sectors there are quite a few of them and one of them I like is Federal Bank but it should be buy at declines.
Comment by Sanjay Singh on 27 October 2009:

Hi Sir,

I believe you have got my reply & understand my concern. Since, i am Pursuing my MBA from (SCDL, PUNE)Finance Management, you better can understand the value of topics which i have asked in the last mail.

It doesn’t matter whether the course has been done on regular basis or from distance learning from any college or institute. Both have equal importance & weightage.

I insist you to please send the content regarding those topics or suggest me any best financila book, covering all the topics.

However, i believe the course material which i have had limited reading material & indepth knowledge of the topics.

Thuogh,i am active investor too & believe in regular investment through my limited savings. I want best guidance from you through this mode.

Pls help me regarding this.

Thanks & Regards,
Sanjay Singh
Comment by Shabbir Bhimani on 27 October 2009:

I would suggest you check out http://shabbir.in/the-warren-buffet-way-book-review/
Comment by K.CHANDRAMOULI on 2 December 2009:

I am 73 yrs old.I require to invest Rs 50,000.00 in Tax Saving ELSS for the current FY.
Kindly advise.
K.Chandramouli.
Comment by Shabbir Bhimani on 2 December 2009:

Choose any from the list. They are the best in the business.
Comment by rajesh on 3 December 2009:

I want to invest Rs 40000/- in tax saving mutual funds.
suggest me which is better option ” Dividend fund” or ” Growth fund”
Also help me to choose MF.
Kindly send me the details to my email id

Regards
Rajesh
Comment by Shabbir Bhimani on 4 December 2009:

I always prefer dividend option as I get quite a chunk of money back and get the benefit of full investment. See http://shabbir.in/full-tax-saving-without-investing-one-lac/

Also I have listed the best option already in this article.
Comment by Brij Kumar Singh on 7 December 2009:

Dear Shabir,
I had to invest about Rs 50,000 in ELSS fund as tax saving exercise.Kindly advice the fund and growth/dividend option.I have in my portfolio SBI Magnum,HDFC taxsaver,HDFC LT, Reliance tax saver, Fidelity tax advantage, Franklin tempelton Birla tax relief 96 and BNP Paribas
Comment by Shabbir Bhimani on 7 December 2009:

I see you have a very good list of funds.
Comment by Ayan Chowdhury on 9 December 2009:

Is there any difference in return if you invest at a time or if you invest every month (SIP)?
Comment by Shabbir Bhimani on 9 December 2009:

Yes. Monthly Sip is best in volatile markets but lumpsum amount is preferred when you have a good solid bull market.
Comment by VIJAI on 13 December 2009:

I HAD INVESTED 10000/- IN UTI-GROWTH SECTOR SERVICES FUND.
SHOULD I CONTINUE OR SWITCH OVER.
Comment by Shabbir Bhimani on 14 December 2009:

If you are making decent profit I would switch to some other Midcap Fund or even to Reliance Growth Fund.
Comment by Shorya on 19 December 2009:

hi..shabbir

i want to invest about Rs 50,000 in ELSS funds. which tax saver funds should i invest in..Should i go with Birla sun life tax relief 96 and Principal Personal tax saver funds or any other fund you can suggest..
Comment by Shabbir Bhimani on 19 December 2009:

Either would not be a bad option
Comment by Sumit Bhatia on 21 December 2009:

I have invested 15000 in reliance infra fund. current NAV is 10.95.. should i remain invested or switch to some other fund?
Comment by Shabbir Bhimani on 21 December 2009:

Sumit, see http://shabbir.in/best-infrastructure-funds/
Comment by Tarun on 25 December 2009:

Dear Sir,

I have to invest around Rs 50,000. May i know where i have to invest for tax saving purpose
Comment by Shabbir Bhimani on 26 December 2009:

Any of the above fund should be good enough.
Comment by Niraj on 29 December 2009:

Hi Shabbir,

I am new in investment and have to invest Rs. 40,000 for tax saving purpose. Please suggest.

Thanks
Niraj
Comment by Shabbir Bhimani on 29 December 2009:

The list of funds are there for you to choose. What else you are looking for ?
Comment by Satyajit on 30 December 2009:

Hi
I am going to invested a lum sum amount in bharati axa tax saver(dividend) and IDFC tax saver( Dividend option). Is it a good time to investment .
Comment by Shabbir Bhimani on 30 December 2009:

May be but I do not like the funds you have opted for.
Comment by yasharth on 31 December 2009:

I was looking into the dividend dates of canara robeco (or for that matter any MF) and it has declared a dividend of Rs 3 on 28th March 2009. How do I know that these dividends have already been paid and fresh dividends will be declared this year, or the payout will be done in the near future. In the latter case, if I invest in it now,I will be getting a dividend of 3 on every unit I hold?
Comment by Shabbir Bhimani on 31 December 2009:

Track your bank to see that they get credited.
Comment by Manoj on 2 January 2010:

Which is best mutal fund to buy for tax saving please suggest.
Comment by Shabbir Bhimani on 2 January 2010:

Thats what is done in the article Manoj
Comment by prasad on 3 January 2010:

pls anyone tell me how to invest n where , bcz im loosing 8100 rs per month as income tax pls reply
Comment by Shabbir Bhimani on 3 January 2010:

Invest in any of the above fund and that would give you lot of tax saving.
Comment by hitesh on 5 January 2010:

Sir,
I have planned to invest 1000 as SIP in tax savings fund. Which funds should i opt for ?
Comment by Mayur on 10 January 2010:

ASAK Shabbir bhai

i have to invest 20000 INR to save my taxes .I am planning to invest in tax saver mutual funds. I am new to it and while surfing net i came across your web site .I have gone through moneycontrol.com that states two mutual funds Birla Sun Life Tax Relief 96 (G) & Birla Sun Life Tax Relief 96 (D).

You have also listed them to be best but whihc one of them is good one with 10.33 nav or other with 88.41 nav?

Which one should i choose HDFC or Birla ?

Also what is your opinion about Can Robeco Eqty TaxSaver (G)with NAV 22?

please advice
Regards
Mayur
Comment by Debasish on 10 January 2010:

Hi,

I have the following doubts plz kindly write in detail,

1. Should one look for the how much returns we are getting or how much dividends we are getting? If I will compare the Sundaram BNP Paribas Tax saver(G)’s NAV with Sundaram BNP Paribas Tax saver(D)’s NAV then I am finding Sundaram BNP Paribas Tax saver(G)’s NAV provide me good return as compared to Dividend. So I would prefer the Growth option. Please suggest me.

2. I have without any idea, I did a SIP of Rs1000 for Birla Tax relief 96. Is that a good one or not??

3. But for which Mf (For tax saving & for Equity diversified fund) you will suggest.
Comment by Shabbir Bhimani on 11 January 2010:

Hitesh, I have the list which are best according to me. Select the ones you prefer from the above list.
Comment by Shabbir Bhimani on 11 January 2010:

When going for Tax Saving I always prefer Dividend option and if you have the question why see http://shabbir.in/full-tax-saving-without-investing-one-lac/
Comment by Shabbir Bhimani on 11 January 2010:

Debasish
1. Nav of Dividend decreases by the amount they pay the dividend and so its like you get some money back yearly and so Nav would always be different in both the option but return is always the same.
2. Good.
3. All in my ebook.
Comment by Ritu on 12 January 2010:

Hi Shabbir,

I am planning to invest 50K as mentioned below.
10K -> Birla SL Tax Relief 96 (G)
10K -> Birla SL Tax Relief 96 (D)
15K -> Can Robeco Eqty TaxSaver (G)
15K -> HDFC Tax saver.

Is it seems to be fine or you advice something else.
Comment by Shabbir Bhimani on 12 January 2010:

Ritu, It looks fine.
Comment by chidambarathanupillai m on 13 January 2010:

MY FOLIO NUMBER 1014086117 ; CUSTOMER REF;B121431014086117 KINDLY SEND STATEMENT ON CURRENT DATE
Comment by Anita on 13 January 2010:

Hi Shabbir,

I have 60K to invest in this month to save on taxes. On 8-Jan-08,I invested 32K in Reliance ELSS Tax Saver -G ( One time purchase).Last year i have not invested in Reliance. What do you suggest, should i continue in Reliance ELSS or opt someother scheme.Is canara Rebeco & SBI Magnum ( one time purchase ) safe option?

I also invested 25 K in Bajaj Century plus on 21-Jan-08. I could not pay last year’s premium. The policy is in the lapse status.Kindly suggest if it is wise to renew this or opt all together a new one.

Thanks & Regards,
Anita
Comment by Shabbir Bhimani on 13 January 2010:

Any fund you have done are good enough and I have listed the best according to me and you can opt for your list or even my list. Its all the same.

Now about your Policy Lapse I would suggest you renew it first. Then either you can continue or break it so you get whatever you would get anyway for that policy. Just remember to ask if you need to pay more to get less if you break the policy in between
Comment by Anita on 13 January 2010:

Thank you Shabbir for a quick reply.
I will invest as suggested by you.

Have a nice day!
Comment by Hitesh on 15 January 2010:

Dear Sir,

I have invested SIP of 1500 in Birla Sunlife 96 tax saver (dividend)two days before at NAV of 88.31
Now i want to invest a lumpsum 20000 in tax saver.
I thought of following options
1. Invest whole amount in Birla Sun life again.
2. Invest whole amount in some other fund (from list put up on ur page)
3. Invest 10000 in one and 10000 in other fund (from the list of funds on ur page)
Please suggest me which is better option from above or if you have any thing better then let me know.

Thanks
Comment by Shabbir Bhimani on 15 January 2010:

Any of them would do. Not much of a different.
Comment by Ravi Kundalia on 21 January 2010:

Dear Sabir,

First time i came across your site.. Seems fine at first time.. I have gone through your proposed mutual fund (ELSS Specifically).. I hope you know regarding portfolio / factsheet of same…

Do u think, is it a wise investment to invest money in ELSS in such volatile market.. index is at 17.5 K.. all time high is apprx 23 K.. what return it will give me at this stage..?.. from my point of view, we won’t get remarkable return by investing in ELSS at this stage of market… We should not forget that ELSS money will be locked by 3 years after your investment.. so what you think dear about the market after 3 years from current stage of 17.5 K..?..

I am just of 24yr.. you seems to be more experience in this field.. do u know any tax saving investment where there will be share like 80:20 or 60:40 or 40:60 between equity:goverment securities IN MUTUAL FUNDS..?.. Don’t tell me scheme like endowment, pension plans etc where 20-40% allocation charges applied at first investment only.. ..

I hope you can help me.. Waiting for your reply..
Comment by Shabbir Bhimani on 21 January 2010:

Ravi, Investing in ELSS is not an option its a thing people need to do to Save Tax and if there is return thats the best part of it. Its something like you invest 100k or else give me 33k till March.

I would suggest you also read my other article – http://shabbir.in/better-way-to-save-tax/

And then I will be open to dialogue.
Comment by Ravi Kundalia on 21 January 2010:

“Open to dialogue..!!!!!..”… it seems that you are being ready for some kind of WORD WAR or something like… .. Actually you are being angry un-necessorily.. My question is simple, in fact very simple..

Current market is 17.5 K.. all time high is 22-23 K.. Correct..?.. If you are investing (let say 75K) in ELSS, do you think that you will get same value after 3 yrs of locking period ?.. As per my knowledge, ELSS having their own portfolio & i.e. too on equity base fully… Is there any kind of other mutual funds which are tax saving but investing in very wide range of mid cap / small cap / large cap which can survive against any kind of storm in share market..?..

Whatever fund you have shown above are basically investing in large cap .. majority in ril / sbi / ongc etc… These all companies are major part of indices.. what if indices fall to bottom after 3 yrs..?.. we can’t withdrawn our money as locking is of 3 yrs.. So is it safe to invest in ELSS at 17.5 K ?.. is there any MFs which under tax saving umbrella but investing in some mines and other sectors which are only a bit affected by index..?..

Hope you will get my point by such brief writing.. Waiting for your reply dear..

Take care..
Comment by Shabbir Bhimani on 21 January 2010:

No I am not angry but what I say is we have very little option when it comes to non-equity based tax saving and good returns without paying the administrative cost.

Now coming to the point of investing at 17k is a risk to an extent which many should not take but then what can be done for Tax. LIC for a 7% return and locking of 20 years with lots of admin charges you don’t know.

So I would still prefer funds.
Comment by yagnesh on 21 January 2010:

dear sir,
please tell me about good tax saver mutual funds
Comment by Ravi Kundalia on 22 January 2010:

ok shabbir.. got ur point.. thanx for ur advice…

do V have any funds which are under tax saving umbrella and dey are investing in small caps or coal/ gold mines or something like different than indices..?.. do u know any such funds ?… tell me about DSP Blackrock .. is thier portfolio is also for large / mid caps ?…

:-/
Comment by Shabbir Bhimani on 22 January 2010:

I am not very aware of many such funds but about the DSP Funds you can see valueresearchonline fund card for any fund to see where they invest mainly
Comment by chidambarathanupillai m on 22 January 2010:

my folio number 1014086117,customer ref;8019831014086117 scheme 02 tax relief 96 fund elss-divident ,what is the present value?
Comment by spjnagid on 23 January 2010:

my elss(fortis tax saver) duration(3yrs) completed,now i want to reinvest same amount ,is switching from fortis tax saver (growth) to fortis tax saver (dividend) will provide me the tax rebate exemption under section 80.c,kindly clearify at earliest and respond at mail id.
Comment by Ravi Kundalia on 23 January 2010:

So shabbir.. if i am investing..

10 K – Franklin
10 K – Reliance
8 K – Icici pru
8 K – HDFC long term adv
5 k – Sundaram BNP
5 K – SBI magnum

and rest 40 K apprx in PPF & gov securities like FD, Pension plans.. den will it be right at the age of 24 ?… or should go more with ELSS ..?..

Thanx..
Comment by Shabbir Bhimani on 23 January 2010:

spjnagid, completed now does mean its still under locking period.
Comment by Shabbir Bhimani on 23 January 2010:

Ravi, I am never a fan of FD and other schemes for multiple reasons. I try not to invest in areas where they pay interest. Thats my personal choice but for you I would suggest more equities because you hardly have any liability
Comment by debraj on 25 January 2010:

Hi,
I am a small investor looking to invest Rs 12,000 in SIP option from April’10. I am already investing in SBI MAGNUM TAX GAIN(D) for the past 2 years in SIP option.
Should I invest in 2 ELSS schemes or only 1 ELSS scheme? I was planning to start investing in both HDFC TAX SAVER and ICICI PRUDENTIAL TAX PLAN from April’10(2 * Rs 500 * 12). Does that sound OK or u recommend something else?
Comment by Shabbir Bhimani on 26 January 2010:

debraj, I don’t think it will matter too much if you invest in one or two funds
Comment by debraj on 26 January 2010:

Even I invest in 1 fund, which fund should I choose? HDFC TAX SAVER or ICICI PRUDENTIAL TAX PLAN? Please do not tell either:)
Comment by Shabbir Bhimani on 27 January 2010:

HDFC Tax Saver because I have invested in that one.
Comment by Saurabh on 27 January 2010:

Well I have purchased Dlf on 429, then on 402, then on 369, then on 354, all with 100 in volume,also 50 shares at 352, I was unaware about stoploss that time but now I know but its too late, plz help me and tell if I should sell my all shares in loss now or wait..
I am totally confused. plz give right suggestion if you can.
Comment by Shabbir Bhimani on 27 January 2010:

Whats your time Horizon ?
Comment by Tejas Dandekar on 28 January 2010:

Hi Shabbir,

if i wanna invest in ELSS …whether i should invest small sip’s in diff ELSS i:e canara tax saver,birla tax relief 96,sbi magnum etc..or select only say “Canara robecco” which will be better option??
Comment by Shabbir Bhimani on 28 January 2010:

Investing in more than one fund is not much of a difference than investing in one fund.
Comment by Saurabh on 29 January 2010:

sorry for late response, but I am possesing them from around 3 or 4 months, means with the time as the rate gets reduced I went on purchasing them.
Comment by Ravi Kundalia on 29 January 2010:

Shabbir,

switching option is not for tax saver mutual funds na ?.. means in ELSS..?..

Is there switching options available in ELSS (tax saver mfs)..?..

Thanks.
Comment by Shabbir Bhimani on 29 January 2010:

You can switch from ELSS to other ELSS fund of the same fund house
Comment by Shabbir Bhimani on 29 January 2010:

Saurabh, I was asking how much more time you can give to holding this stock.
Comment by Zafar on 1 February 2010:

Hi Shabbir,

Since last 2 years i had invested my full amount in Tax Saving FDs.
This year i am looking forward to start investing in ELSS for Tax Saving, after getting comparisons on the returns between ELSS & FD.
Since this is the first time i am investing, should i put my entire amount in ELSS (splitting 100% in any 3 MFs listed above by you) or do you think for safety sake, i should keep 30% in FD and 70% in ELSS. My age is 29yrs.

Also to start of in MF, at this point in time, what is the procedure of the same. Can it be done by self online, or do we need to go through some Financial agents who will always be needed to buy / sell MF. Please guide me.

Regards,
Zafar
Comment by Shabbir Bhimani on 1 February 2010:

Zafar, I would have done 100% in ELSS but if you even go for 70% that would not be bad to start with and if you think its more worth it you can make 100% next year.

Also read

http://shabbir.in/better-way-to-save-tax/
Comment by Zafar on 1 February 2010:

Hi Shabbir,

Thanks for your quick response & useful link.
Can you also please guide me on how to start investing in MF, i mean what is the exact procedure involved here.
Can it be done by self online, or do we need to go through some Financial agencies, who will do all the formalities needed to buy / sell MF.
Please guide me.

Regards,
Zafar
Comment by Shabbir Bhimani on 2 February 2010:

Get an account in ICICIDirect and then its just few clicks to invest in MF
Comment by Akshita on 2 February 2010:

Hi Shabbir,

I plan to invest 50000 in tax saving MFs. But mu financial advisor is suggesting Birla Sunlife Dream Retirement Plan which is an insurance cum equity plan. Please suggest what you think would be best. I am 40 yrs old and would like this to be a single time investment.

Thanks,
Akshita
Comment by Shabbir Bhimani on 2 February 2010:

Dont go with Insurance if you plan to save Tax
Comment by Dhiraj on 2 February 2010:

First of all I would like to thank Shabbir for the information he is giving to all of us; and I totally agree with Shabbir about investing in ELSS – Section 80C Category investment.

Its all about getting rid of the mental block that we all have.
1. By investing 1 Lac; one saves approx 30K-33K for the current year on TAX
2. Although a risk; The Same 1 Lac invested; has a good chance of giving atleast some return on a 3 year lock-in-period. 3 years is good enough period to give some profits.
market is currently trading at 16K+ ; even if it becomes 20K after 3 years; you still made some profit.
Not to forget; your 1 lac is already saving 30K to 33K of tax for that year.
3. Note: One will have to pay tax on the dividends though or lump sum amount at the point of maturity / withdrawal

I totally agree with Shabbir; i.e. if your investors themselves are going to invest in funds and other items; then why not do it yourselves. Dont fear.

For those fearing a bit; you could look for schemes under
Section 80C + 10(10D) — ULIP’s are good example
No tax on Principal amount + No tax on interests + No tax on total amount on maturity
But then; I would suggest to re-calculate or make estimates of the profit for the amount invested for a minimum term of 10years having a lock-in-period of minimum 3 to 5 years.

ELSS – the best way to save TAX.

May be Shabbir can add more; I am not an expert.
Thanks Shabbir.
Comment by Dhiraj on 3 February 2010:

Regarding
Birla Sun Life Tax Relief 96 OR similar 10+ year old funds

The following is my personal view and based on my personal estimates;
Considering market trend and mindset change that the market crash has brought into; it is very likely to bring about a change in strategy for future development.

Since BSL 96′ is an aggressive fund (as opposed to balanced funds)
and it being rated as the best for its 13 year performance; it may not be the best for the next 3 years.
For me – it looks saturated; it should perform as good as others; nothing special.

From its current state and considering market trading at 16K+
This fund should grow at around 8%-10% rate or even less; for the next 3 years.

Still ELSS is the best way to save tax; and I would recommend that you invest wisely ; making a good study of the funds already existing and recently(3-5 years old) launched funds; if you are looking to make profits from equity.

Since you need to pay tax on your dividends or maturity amount; as an investor you would want the profit to be good enough.
Comment by kunal on 3 February 2010:

Hi Shabbir,
Indeed a good article.
I’m a little confused over investing in BNB Paribas Tax saver and Canara robeco.. which one would be wise investment for high dividend and currently i would invest lump-sum ~40k.
Comment by kunal on 3 February 2010:

oops , i did a refresh on the comment page, pls ignore the above comment.
Comment by Dhiraj on 3 February 2010:

Here is something more…
Now… if you are willing to invest in ELSS MF’s …
then,
why not invest in equity directly ?

Are you ready to lose the 30K in tax ???
why would you want to save 30K tax by investing 1 Lac rupees ???

Assume this,
From April 2010 you have 1 lac in hand which you would want to invest to save 30K tax for the year 2010-2011.
But then instead, you decide to invest in equity directly such that you make atleast 10-20K per month.

From my observation even uneducated men and WOMEN are able to make that much by investing in equity; trading for the month.
And, if you are slightly educated; its a shame if you cant make that much; at least I look at it that way.

Note:
Since this would be short term trading; you will have pay tax.
So you want to trade in such a manner such that even after paying tax you land up making a profit of atleast 5K rupees per month.
To make that amount is absolutely easy; if you use your brains.

So now you would have 60K at the end of the year + your 1 lac which you used to make this money.
And the 30K that you would have lost in tax would actually be covered; giving you a total profit of 30K. (60K – 30K tax)
Now that’s investment.

Eventually You don’t land up in 3 year lock-in-period in ELSS.
You would have helped companies grow; as well as made some profit; plus covered your tax.

Its all a mental game.
Lear to play it; and always be ready to lose.

All the best.
Comment by Shabbir Bhimani on 3 February 2010:

I do not agree on the fact that you can earn month after month 10% month on month.

If that is the case you actually can more than double each year but that is not always possible.
Comment by Dhiraj on 3 February 2010:

Why Not ???
1 Lac for 30 days.
– 30 days is a lot.
Comment by Hitesh on 3 February 2010:

Hi Shabbir,

I had started ULIP (growth) from Max New York in sep 2005 with annual premium of 15000 just for the sake of tax saving. But i am not satisfied with the performance. As against my invesment of Rs 67000 , current value as on date is 64000.
Now when i some study about tax savings instruments, i realised that good portion of my amount went in all the charges (allocation, admn , fund management etc).
Should i stop paying any more premiums or continue for some more period ?
will i be applicable short term gain tax if i withdraw the money now?
Comment by Shabbir Bhimani on 3 February 2010:

Hitesh, You probably are out of the charges if I am not wrong but still I would prefer you read

http://shabbir.in/better-way-to-save-tax/
Comment by Shabbir Bhimani on 3 February 2010:

Thats asking for too much but if you can do that try becoming a fund manager ASAP Dhiraj and start managing the fund of your family as we may have the billionaire in the making soon
Comment by Dhiraj on 3 February 2010:

Well, All I can say is

Learn to explore.
Play to Win; And Be Ready to Lose.

I would not want comment on equity trading at this moment.
lets keep it to our own selves.

My Preference for tax saving:
1. Equity Trading or a well thought short-term Side-Business.
2. ELSS
3. ULIP
4. Govt Schemes like PPF, NSC, FD, etc…
5. Housing loans, etc…

If I ever become a billionaire; you will know for sure.
But that’s not my target; all I want is, to live my life happily.

I have already taken the jump; and I don’t intend to cross the ocean swimming; I don’t expect a ship; but a small hi-tech boat will do the job for me.

Note:
If you are salaried person; then you PF contribution is also a part of the tax saving; so you really dont have to invest 1 Lac to save 30K tax.

Example:
if your PF contribution is 25K per year; you will only have to invest 75K to save tax. don’t invest the entire 1 Lac.

Anyways; as we all differ; so will our strategies.
Shabbir is always available and should be a good guide.

Thanks Shabbir for helping out.

Take care and Cheers,
Dhiraj
Comment by P.Ramachandra Rao on 3 February 2010:

I would like to purchase tax saving bonds or mutual funds for Rs one
lakh before the closure of the current fiscal with lowest locking period and handsome yield. Kindly advise options. I am senior citizen and a retired BSNL officer.
Comment by Shabbir Bhimani on 4 February 2010:

Yes it looks good on paper but you should also be realistic. Definitely you can make handsome gains in few months but that may not be the case month after month.
Comment by Satish on 4 February 2010:

Please tell a ELSS scheme which is planning to give immidiate dividend in few months probably as high a 30% to 50% of investment value not NAV
Comment by Shabbir Bhimani on 4 February 2010:

Satish see http://shabbir.in/dividend-history-mutual-funds/
Comment by vivek kedia on 5 February 2010:

I want to invest in mutual funds for tax releif of Rs 30k .
Pls suggest me top three higest return payer fund in last year so that i can invest equally 10k each.
Comment by VK Gupta on 8 February 2010:

Dear Sir,

I have to invest in tax saving funds,kindly suggest some best funds
will it be ok if i invest 30K in one go. can i invest on line or i will have to visit some fund house for that.

regards.
Comment by kanchana on 9 February 2010:

Good Evening.
I am to save Rs.10,000-00 in addition to other savings for I.T. benefits. I am little confused whether to save in ELSS Fund or ULIP. Pl. suggest.
Thanking you.
Comment by Shabbir Bhimani on 10 February 2010:

kanchana, Please read http://shabbir.in/better-way-to-save-tax/
Comment by Mothilal on 1 March 2010:

I plan to invest around 6,000 or 8,000 pm in ELSS schemes with SIP option. But i dont know which funds are best(as lot of funds exist).

1. Suggest me 4 or 5 good ELSS funds for 3 to 5 years.
2. Pls advice whether i can invest whole amount in 1 fund(HDFC Taxsaver) or good to invest in several funds?
3. which option dividend or growth is best? (I need long term gains)
4. I have to start invest in march or april for FY2010 tax saving?
5. Where i can approach for opening this SIP, and monthly how i pay the SIP amount? Via Online or Manual?
6. I having ICICI bank account, but as you suggested above for Icici direct account. I feel its better to open with any agents for proper guidance and support.

Please suggest me…
Thanks in advance…
Comment by ARUN KAPOOR on 3 March 2010:

I WANT TO INVEST RS. 1.00 LACS WITH A VIEW TO HAVE PENSION – FIXED MONTHLY INCOME AFTER 13 YEARS.

PLEASE SUGGEST.

REGARDS
Comment by Shabbir Bhimani on 3 March 2010:

13 Years is a too long period for one fund to be having an investment into and I think you should be able to churn it time and again.
Comment by Mothilal on 4 March 2010:

I plan to invest around 6,000 or 8,000 pm in ELSS schemes with SIP option. But i dont know which funds are best(as lot of funds exist).

1. Suggest me 4 or 5 good ELSS funds for 3 to 5 years.
2. Pls advice whether i can invest whole amount in 1 fund(HDFC Taxsaver) or good to invest in several funds?
3. which option dividend or growth is best? (I need long term gains)
4. I have to start invest in march or april for FY2010 tax saving?
5. Where i can approach for opening this SIP, and monthly how i pay the SIP amount? Via Online or Manual?
6. I having ICICI bank account, but as you suggested above for Icici direct account. I feel its better to open with any agents for proper guidance and support.

Please suggest me…
Thanks in advance…
Comment by jugal baheti on 4 March 2010:

i want to invest 100000 in elss pl advise best scheme
Comment by Shabbir Bhimani on 5 March 2010:

Mothilal the list I have above is just good for you and one or more funds does not make much of a difference when it comes to ELSS and so I prefer one fund per year.
I will also suggest you to look at http://shabbir.in/dividend-or-return-tax-saving-funds/
Comment by Srikanth Matrubai on 7 March 2010:

Shabbir Bhai, I think we need more people like Hiten. They play the role of Devils Advocate.
Comment by Ravi Kundalia on 10 March 2010:

Dear Shabbir,

Again i require your help… My age is 24 & working as an engineer with one reputed company.. I have already invested more than 1 lacs rs in past one year through ELSS… ofcourse few thousands of PPF & pension policy of birla sunlife also started.. But still i have not insured my self with any insurance policy..

With the interaction of few seniors of my company, they advised me to take a lifecover policy at earliest.. What do you think…?.. should i take life policy at this age or not..?.. They advise to take LIC Wealth plus plan as it is good from their point of view .. and i don’t know any another insurance policies..

Can you guide me whether should i take any insurance policy or not ..?.. and if yes then how much coverage i should take (if CTC is more than 5 lacs currently)..?.. and ofcourse, through which insurance policy from your point of view ..?..

Thanks.. hoping nice answer asusual..

Take care..
Comment by Shabbir Bhimani on 11 March 2010:

Ravi, For insurance I think term insurance is your best bet provided you can manage to take it because no sales man will offer you or recommend you term insurance.
Comment by Ravi Kundalia on 11 March 2010:

Term insurance ?… which one is best for that..?… Actually i don’t know much about insurance .. can u help me to guess about my coverage..!!!!!.. means how much coverage i should have at the age of 24 ?.. (if ctc is more than 5 lacs)..?..

Plz help in that case..

Thanks dear
Comment by Shabbir Bhimani on 12 March 2010:

It all depends on how much you can waste. First get a broker who is ready to do that because its a good product for you but not for your broker.

Also I will write about term insurance in much details as soon as possible and update here.
Comment by Abhishek on 14 March 2010:

Hi,

I need to know what is the best tax savor plan currently and 100 safe to invest in terms of good returns.
Comment by Shabbir Bhimani on 15 March 2010:

Abhishek, returns and safety cannot come hand in hand. You have to sacrifice one for the sake of other.
Comment by karan on 22 March 2010:

Hi
I need info.I want to invest on mutual fund for short duration( six/nine months).which are best mutual fund for my requirement and
where to purchase.

thanks a lot.
karan
Comment by karan on 22 March 2010:

hi
I invested on these mutual funds in 2007.till now no profit.
Shall i continue or withdrawal.

-> ICICI Prudential Tax Plan-Growth
-> Reliance Tax Saver (ELSS) Fund – Growth
-> HDFC Tax Saver 96-Growth.
-> Tata Tax Saving Fund

karan
Comment by Shabbir Bhimani on 22 March 2010:

Karan, You are still not 3 years in your ELSS funds and so you should remain invested and as I see that you have invested in growth but I always prefer Dividend for ELSS funds.
Comment by karan on 22 March 2010:

Hi,

Thanks sabir.
I am interested to invest for short term means six/nine month.
which mutual fund are good for my requirement means good profit.
Tell me,which fund i should purchase.Can you give me ur mail id .
if these mutual fund are not available in bank, then where i can purchase.
Comment by karan on 22 March 2010:

Hi sabir,

I want to know about pension saving scheme.
which bank is having good pension scheme.
Comment by tarun uppal on 23 March 2010:

seeing your skills in consulting other people
i think you might give a solution to my problem too

my big problem
kotak life insurance guuarenteed growth plan flexi plan 2

aloocation charges 56 % in 1st year
customer care says its the costliest plan available
i was duped but it was my fate i guess i have a total of more than 1.5 lac in the plan per file
lock in of 3 years is over
but my money is still like 1 .22 maximum

my first nav purchased was 26.56 approx
wat to do now my due date is near
i dont like to keep my money parked for total of 10 years

a 4% exit load is there in 4 year
a monthly charge of rs 250 is also levied mortality charge
this shit is so mortal itslef

reply required urgent
Comment by tarun uppal on 23 March 2010:

one more i have opted for

hdfc tax saver and birla sl tax relief 96

but my agent is suggesting me some

taures tax saver dividend is it good?
Comment by tarun uppal on 23 March 2010:

and this one also brother

if my lock in period is not over but
my investment is making money shud i book profits
is exit load is low?

or wait for the lock in to end?
Comment by Shabbir Bhimani on 23 March 2010:

Tarun, Go for things where you make the least loss as that is the only thing I an suggest.
Comment by Shabbir Bhimani on 23 March 2010:

Tarun, do not believe your broker as I am sure he is after his commission more.
Comment by tarun uppal on 23 March 2010:

thank you mr shabbir
i appreciate your help

but the least loss is in the fifth or sixth year where exit load is 1 or 2 % i guess
but the martality charge is too high 250 pm

i think they r getting money in one way or the other

i must say they r big level pik pocketers..!duh
Comment by karan on 23 March 2010:

Hi,

Thanks sabir.
I was waiting ur reply for these queiries.
I am interested to invest for short term means six/nine month.
which mutual fund are good for my requirement means good profit.
Tell me,which fund i should purchase.Can you give me ur mail id .
if these mutual fund are not available in bank, then where i can purchase.

2>

I want to know about pension saving scheme.
which bank is having good pension scheme.
Comment by Shabbir Bhimani on 23 March 2010:

Tarun, you misunderstood me. I meant you loose least money does not mean you loose on capital but if you can get X amount now and can double in 3 years that means you make less loss.
Comment by Shabbir Bhimani on 23 March 2010:

Karan, I have the fund list in the ebook which answers all your questions.

Mutual Funds are all available from fund houses and bank has nothing to do with it.
Comment by karan on 23 March 2010:

Hi
Thanks a lot sabir.
I want to read ebook.
tel me link.
Fund houses means i am not getting.
can you explain in detail /send me link.
Comment by Shabbir Bhimani on 23 March 2010:

Karan, here is the link http://shabbir.in/subscribe.html
Comment by karan on 24 March 2010:

Thanks a lot sabir
Comment by tarun on 24 March 2010:

if my lock in period is not over but
my investment is making money shud i book profits
if exit load is low?

or wait for the lock in to end?
Comment by karan on 25 March 2010:

Hi

first of all thanks for all my quiry.
axis bank employee told me downlaod aplication
of mutual fund from website(birla) and submitt
to bank.purchasing mutual fund this way is also okay.
what you think.
Comment by Shabbir Bhimani on 25 March 2010:

The pleasure is all mine.
Comment by Shabbir Bhimani on 25 March 2010:

Tarun, you should wait for your locking period otherwise tax calculation will change and you may need to pay the tax you saved few years back
Comment by Shabbir Bhimani on 25 March 2010:

Karan, Its perfectly OK
Comment by karan on 25 March 2010:

Thanks a lot.Can you tell me pension saving scheme.
which bank pension saving scheme is good.how i can select.
Comment by karan on 25 March 2010:

Hi
Are you discussing stock market also.

thanks a lot
Comment by Shabbir Bhimani on 25 March 2010:

Karan, I think you need to ask your financial advisor that
Comment by aditya singh on 6 April 2010:

Hi Shabbir,

Q1)I have just graduated and started working I plan on saving tax. Is it wise to invest close to 80,000 in SIP/ELSS and nothing in PPF or any such tax instruments?

Q2)My goals r to reap returns in the next 5-6 years for a big investment.
Also With the current market scenario is it wise to invest like 20k in bulk and the balance 60k @ 5k per month for the next 12 months?

Q3)Is there any diversification in portfolio needed if i invest the way i had mentioned above?

Thanks a lot
Comment by Shabbir Bhimani on 6 April 2010:

Q1) Saving tax is saving tax and do not take that as investment. If you get good returns well and good but if you just break even consider yourself lucky as well.

Q2) I am coming up with a post on if SIP is better or bulk soon. Hopefully this week.

Q3) Diversification on time and area of investment both are important.
Comment by Hitesh on 7 April 2010:

Hi Shabbir,
can u suggest me some good equity diversified funds ?
also should i invest it a lump sum or sip?

Hitesh
Comment by Shabbir Bhimani on 8 April 2010:

Hitesh, Normally I do not do that and I prefer to give points which can help you good funds for yourself but yes I have mentioned some of the best performing funds for me in my ebook.
Comment by Shabbir Bhimani on 10 April 2010:

@aditya singh – Check the article I have just published on SIP – http://shabbir.in/best-tips-on-systemtic-investment-plan/
Comment by rajesh on 10 April 2010:

Hi,

can you suggest a fund which will give good return with tax saving
as iam planning to invest in monthly SIP of Rs 2000.
Comment by sanjay on 15 April 2010:

Dear Shabbir,

I am planning to put like 1500k each month in Birla Sun life G ELSS,1500k in HDFC tax saver and 1000k in PNB Sundaram Equity Tax saving.All are growth and diversified using SIP.DO you think it is a wise decision?Also I want to chip in small amout of 500 each in HDFC top 200 fund for 1 yr.Please reply to me so I can take a decsion to open this.Any suggestions is good.
Comment by Shabbir Bhimani on 15 April 2010:

I guess it is 1500 and not 1500k and you are not bad in selecting the funds.
Comment by barsan on 25 April 2010:

Hi Shabbir,
I am planning to invest 40k in the following way
15k->hdfc taxsaver(d)
10k->hdfc taxsaver(g)
10k->birla sun life(g)
5k->birla sun life(d)
is it ok? please suggest.I am 24 years old and completely new in this field.
should I invest monthly or pay it at one time?please help.
Comment by Shabbir Bhimani on 26 April 2010:

Barsan, I will also suggest you read http://shabbir.in/growth-or-dividend/ before you take the final step
Comment by Akshita on 6 May 2010:

Hi Shabbir,

I have invested (by online banking)in ICICI Pru Infrastructure fund through SIP for a period of 12 months. I would like to know:
Can I change into another fund or a different fundhouse in between? Can I withdraw from the SIP itself? If yes, would it be a loss?
Can I sell the units in between the SIP period?

Thanks and regards,
Akshita
Comment by Shabbir Bhimani on 6 May 2010:

Yes Akshita, you can.
Comment by mayur on 6 May 2010:

i want to invest one lakh rupees in stocks with a time frame of 2-3 years.which all stocks will you recommend?i am ok with large/mid/small cap stocks.
Comment by Shabbir Bhimani on 7 May 2010:

Mayur, I do not prefer recommending stocks but if you search my blog you will find some stocks which I like. As for example the articles like

http://shabbir.in/select-best-stock-to-buy-today/
http://shabbir.in/stocks-you-should-have-in-your-portfolio/
Comment by karan on 7 May 2010:

Hi sabir,
I am really thankful to you for answering all my queries.
I am thinking of investing in following mutual fund

Dividend funds
Birla Sun Life Tax Relief 96 ——- 10k
Principal Personal TaxSaver ——- 10k
SBI Magnum Tax gain ——- 10k
HDFC Tax Saver ——- 10k

Can u tell me, is this correct to invest like that?
what is correct time to purchase means fund/nav value minimum.
june month i m thinking to purchase.

thanks a lot
karan
Comment by Shabbir Bhimani on 7 May 2010:

Karan, It is better to go with SIP mode looking at the market ahead.
Comment by karan on 8 May 2010:

Hi
I am not aware of sip mode.can you tell me in details.
I should invest in these mutual fund which i listed above,but in sip mode.
can u tell me next month is correct time to purchase?

I am really thankul to you .
Comment by Shabbir Bhimani on 9 May 2010:

Karan, I will suggest you to go through my ebook to know more about SIP. It is a way to invest regularly in small amount into the same fund for an elongated period of time
Comment by Neel on 13 May 2010:

Hi Shabbir,

Would it make sense for a person to invest in ELSS when his/her savings under 80C is already crossing 1 Lakh (through other investments like LIC/House loan)? Would it not be better to invest in non-ELSS funds in this scenario?
Comment by Shabbir Bhimani on 14 May 2010:

Neel, yes he should opt for Non-ELSS fund for a simple reason that he can take the money out when he wishes without any locking period.
Comment by pramodh on 22 May 2010:

Sir, I am looking for a best ELSS tax saver plan with a monthly investment of Rs:3000-4000. Please advise the best provider and about the tax benefits.
Comment by pramodh on 22 May 2010:

Sir, It was told that Long Term Infrastructre fund’s invements are exempted from tax. Can you advise which will be best one and the lock in period of the same.
Comment by Aky on 23 May 2010:

respected sir,
I want 2 invest 2000 pm in sip which is the best fund which will give very high return please tell me sir?
Comment by Shabbir Bhimani on 23 May 2010:

Pramodh, ELSS funds and infrastructure funds are 2 different type of funds and you cannot overlap both. Yes an ELSS fund can invest in infra stocks to give better return but the vice versa is not true and I am not aware of any such things. Please read – http://shabbir.in/select-best-mutual-funds/

Aky, You have to read my ebook for that.
Comment by reddy on 24 May 2010:

Hi Shabbir,

I want to invest 5ok for this financial year in 3 kinds of dividend funds.
Pls suggest me the best funds that i can inveest.Also which is the best time to invest to get the dividend,as the new financial year is just started
Comment by Shabbir Bhimani on 24 May 2010:

Reddy, Check out http://shabbir.in/dividend-history-mutual-funds/
Comment by prem on 24 May 2010:

shabbir, I want to know my sip is going on in Reliance vision and HDFC top 200 . now i want to redump them . it is the time to redum them or not.
Comment by karan on 24 May 2010:

HI

I want to invest like that in this month is it okay

HDFC Tax Saver ——- 5k
SBI Magnum Tax gain ——- 5k
Birla Sun Life Tax Relief 96 ——- 5k
Principal Personal TaxSaver ——- 5k

as dividend mf
——————————–
same i purchased for next month and so on .

investing in these funds are okay
Comment by Shabbir Bhimani on 24 May 2010:

Prem, You can at any time redeem them and if you have need for your money you should or else keeping them in the funds you have would be wise option
Comment by Shabbir Bhimani on 24 May 2010:

Karan, I am not a fan of doing ELSS in 4 different fund and is there any specific reason for you to do 5k in each.
Comment by karan on 24 May 2010:

HI

I want to invest like that in this month is it okay

HDFC Tax Saver ——- 5k
SBI Magnum Tax gain ——- 5k
Birla Sun Life Tax Relief 96 ——- 5k
Principal Personal TaxSaver ——- 5k

as dividend mf
——————————–
same i purchased for next month and so on .

investing in these funds are okay
———————————————-
Karan, I am not a fan of doing ELSS in 4 different fund and is there any specific reason for you to do 5k in each.
————————————————-
I am thinking to distribute in different fund ,if loss in one fund can recover with other fund profit.
———————————————-
how i am investing in each mutual fund ,that is sip only
Comment by Shabbir Bhimani on 24 May 2010:

You can do a SIP in one fund. Why 4
Comment by karan on 24 May 2010:

Thanks a lot
actually I want to invest approax 40000/
tell me which one is good mutual fund for sip.

I am really thankful to you.
HDFC Tax Saver
SBI Magnum Tax gain
Birla Sun Life Tax Relief 96
Principal Personal TaxSaver
Comment by Shabbir Bhimani on 25 May 2010:

Karan, All are best and you can choose any one
Comment by karan on 25 May 2010:

Thanks a lot
actually I want to invest approax 40000/
tell me which one is good mutual fund for sip.

i am going for SBI Magnum Tax gain

is it okay
Comment by Shabbir Bhimani on 25 May 2010:

I have done that in the post itself karan.
Comment by karan on 26 May 2010:

thanks a lot
Comment by karan on 28 May 2010:

HI

Is there any specfic date to purchase sip tax mutual fund?
profit point of view.
Comment by Shabbir Bhimani on 28 May 2010:

No. I dont think so.
Comment by Hitesh on 31 May 2010:

Hi Shabbir
i invested in Religare Agile tax fund (close ended)on 10th march 2008.
It is underperfoming, so i need to get out of it. But i am not sure when can redeem it.I have mentioned below the terms and condtions for redemtion. Can u plese suggest me, when can i redeem it with minimum or zero deductions ??
Following are the terms as displayed in account statement:

“The Scheme is a close-ended ELSS with a maturity of 10 years. The Units issued are eligible for deduction u/s 80C(2) (xiii) of the Income Tax Act, 1961, subject to a maximum of Rs.1,00,000/-. After initial
lock-in period of 3 years from the date of allotment, Units can be redeemed/pledged/transferred during the specified redemption period which is currently the first five business days of each month. For
further details, please refer to the Offer Document Load Structure: Entry Load : Nil. Exit Load : Nil, but on redemption before maturity of the scheme, the balance proportionate unamortized issue expenses
on the applicable NAV will be charged. Please Note that prevailing exit load structure at the time of investment will be applicable for redemption/switchout.
Maturity Date : Friday, 30th March 2018″
Comment by Hitesh on 31 May 2010:

What is your take on
1. SBI PSU Fund
2. Birla Sunlife new fund
Comment by Shabbir Bhimani on 31 May 2010:

Hitesh, you are trying to break a rule and so deductions is inevitable.
Comment by Hitesh on 1 June 2010:

Yes Shabbir even i will retain it for minimum of 3 years, but i just wanted to know when can i redeem after years , without the deductions ?
Comment by Parag on 11 June 2010:

I am thinking of investing in the following funds Rs.1000/- each through SIP every month (Dividend Reinvestment option)

Canara Robeco Equity Tax Saver
SBI Magnum Taxgain
Fidelity Tax Advantage

What do u suggest?
Comment by Shabbir Bhimani on 11 June 2010:

Parag, Any reason for 3 funds and not one?
Comment by Parag on 11 June 2010:

So that even if one of them performs not so well, the other fund compensates.
Comment by Shabbir Bhimani on 12 June 2010:

Parag, not bad but then the funds you have choosen are not the one that actually diversifies anything and so performance of each of them would be more or less inline with each other. Yes one can compensate for other in some cases.
Comment by Parag on 13 June 2010:

So do u suggest that i invest only in one fund whatever i want to invest?
Comment by karan on 13 June 2010:

hi
i need information about mutual fund from tax point of view.
in dividend there two option

1> dividend received
2> dividend reinvested

which option is best/select when purchase mutual fund.

Thanks a lot
Comment by karan on 13 June 2010:

hi
i need info abt this also.

->>SBI Magnum Monthly Income Plan .

Is it correct to invest in this scheme for long term/35 years.
Comment by Shabbir Bhimani on 13 June 2010:

Parag, I will suggest lesser list of funds.
Comment by Shabbir Bhimani on 13 June 2010:

Karan, See http://shabbir.in/dividend-or-return-tax-saving-funds/
Comment by Shabbir Bhimani on 13 June 2010:

Karan, I will not suggest SBI funds for that long.
Comment by karan on 14 June 2010:

thanks a lot
tell me other good one comppare to
->>SBI Magnum Monthly Income Plan .

accord to one which scheme is good for long term/35 years.
Comment by Shabbir Bhimani on 14 June 2010:

I am not an investor for that long and maximum I do is 3 years and there is no investor who can predict for that long. Invest in good fund and keep and eye on it and see if you can move to better performing investment.
Comment by karan on 15 June 2010:

HI

I need info abt these funds.
is it profitable to invest in these funds
Sahara Taxgain
Religare Tax Plan
Sundaram BNP Paribas Taxsaver.

as u r experince ,analyse past records

thanks a lot
Comment by Shabbir Bhimani on 15 June 2010:

Karan, If your aim is Tax Saving why those names and not the ones that are best in the business.
Comment by karan on 16 June 2010:

Hi

Thanks a lot
can u tell me returm calculated for mutual fund.
HDFC Tax Saver 96-Growth purchase date 10/12/2007.
can you tell me till now how much return.

thanks a lot
Comment by karan on 16 June 2010:

hi
i need nfo for short term mean six month .
what abt these funds
Birla SL Dividend Yield (G)
HDFC Equity Fund (G)
ICICI Pru Dynamic Plan (G)
Reliance Equity Oppor – RP (G)
Reliance Growth Fund – RP (G).
Is it okay for six month to invest in these funds
Comment by Shabbir Bhimani on 16 June 2010:

What is the purchase rate?
Comment by Shabbir Bhimani on 16 June 2010:

Investing at such high would not be of any benefit and wait for a correction of 4-5%
Comment by karan on 17 June 2010:

Thanks a lot

HDFC Tax Saver 96-Growth purchase date 10/12/2007.
I know its locking for three year upto dec.
can you tell me till now how much return till now and aproaaax upto dec 2010.
Comment by karan on 17 June 2010:

I am not getting means wait for a correction of 4-5%

Investing at such high would not be of any benefit and wait for a correction of 4-5%
Comment by karan on 17 June 2010:

HDFC Tax Saver 96-Growth
purchas: 50.041 199.8369 10000.04 18-Dec-2007
today: 50.041 213.211 10669.29

HDFC Tax Saver 96-Growth purchase date 10/12/2007.
I know its locking for three year upto dec.
can you tell me till now how much return till now and aproaaax upto dec 2010.
Comment by karan on 17 June 2010:

HDFC Tax Saver 96-Growth
purchase 50.041 199.8369 10000.04 18-Dec-2007
today 50.041 213.211 10669.29

No. of Shares/Units 50.041

tell me upto december 2010 how mcuh i will get for 10000/ invested/or tell me upto today how cuh i get
Comment by Shabbir Bhimani on 17 June 2010:

Karan, I am not able to get what you are asking. If you want me to predict december I guess you need to consult an astrologer.
Comment by karan on 17 June 2010:

how much return till now .
Comment by Shabbir Bhimani on 17 June 2010:

Karan, you seems to be weak in maths? Its simple calculation of current value – amount invested.
Comment by karan on 18 June 2010:

Hi,

I am very strong in math.but i am new to mutual fund thats why asked.
Comment by Shabbir Bhimani on 18 June 2010:

Karan, your profit is current value less your initial investment. Now what it will stand on December should be a guess and there is no logic behind it. So instead of focusing on what it could be Dec try making the most of your gain
Comment by karan on 20 June 2010:

hi

Thanks a lot .

I asked you abt these.
i need info for short term mean six month .
what abt these funds
Birla SL Dividend Yield (G)
HDFC Equity Fund (G)
ICICI Pru Dynamic Plan (G)
Reliance Equity Oppor – RP (G)
Reliance Growth Fund – RP (G).
Is it okay for six month to invest in these funds
————————————-
you ans was Investing at such high would not be of any benefit and wait for a correction of 4-5%..

i didn’t get this “wait for a correction of 4-5%”

can u tell me what it is i am new to mutual fund
Comment by Shabbir Bhimani on 20 June 2010:

Karan, yes you have a good list of funds but I did not want you to do the investment when we see Nifty close to 5200 but when it corrects 5% from 5200 level or any peak you can do the process of getting into the funds. That way you can have better returns.
Comment by karan on 22 June 2010:

HI,
I need info about purchasing birla sun life mutual fund.
1> direct purchase from birla sun life .
2> fill up application with axis bank.

In second case axis bank will deduct money for processing or not.

accord to which one is good first or second.
Comment by Shabbir Bhimani on 22 June 2010:

Always first
Comment by ashu on 23 June 2010:

I was planing to take Principal Personal tax life mutual fund.

someone suggest me this statement.

You can replace Principal Personal tax life with Franklin Taxshield, Sundaram BNP Paribas Taxsaver.

I want to know ur suggestion.shall i take Principal Personal tax life or not .
Comment by Shabbir Bhimani on 23 June 2010:

Ashu, Just name anyone can suggest but ask the reason how one is better than the other for your needs. I have suggested one view point of mine listing the best tax saving funds.
Comment by ashu on 23 June 2010:

hi
can i submitt mutual fund aplication to karvy.
http://www.karvy.com

no comission and entry load in karvy .

what is ur suggestion for karvy.
Comment by Shabbir Bhimani on 24 June 2010:

Ashu, I have no experience with them but yes if they are the broking house of any fund they should accept the application without an entry load. Just ask them.
Comment by ashu on 24 June 2010:

now nifity improves. can i purchase for six month or one year from next month as you told.
in previous talk

Karan, yes you have a good list of funds but I did not want you to do the investment when we see Nifty close to 5200 but when it corrects 5% from 5200 level or any peak you can do the process of getting into the funds. That way you can have better returns.
Comment by Durga on 25 June 2010:

Hi Shabir,
I am 24yrs and would like to invest money which would help me to save tax & get good returns. I am planning to invest 36,000/year in ELSS through SIP(Rs3k/month). My options are HDFC Tax saver(G/D)- Rs1500/month,canara robeco tax saver(G/D) Rs1500/month.

Here are my questions
1)Is it better to invest in two different ELSS for Rs3000/month or one ELSS is enought?(Suggest me either HDFC or Robecco if one ELSS is enough)
2)In ELSS also we will get Dividend before the Lock in period(below 3 years)?
Comment by Shabbir Bhimani on 25 June 2010:

Durga, One is enough but two are also not bad and to choose between the two you have mentioned is best done by tossing a coin as no one is better than other but regarding your second point yes you get dividend before 3 years and ideally 3 times in 3 years of locking period.
Comment by Durga on 25 June 2010:

Thanks for details,my main point was does HDFC and Canara are investing in diff proposition in diff sectors.It means performance of these two are inter dependent.i am thinking if i choose two funds for investing,it may be benefit at the time of redeeming the units(after 3years) if one fund is not performing well i can redeem from another fund and wait for another fund to perform well.

As i am new to MF,may be my assumptions are wrong
Comment by karan on 25 June 2010:

can u tell me

now nifity improves. can i purchase for six month or one year from next month as you told.
in previous talk

Karan, yes you have a good list of funds but I did not want you to do the investment when we see Nifty close to 5200 but when it corrects 5% from 5200 level or any peak you can do the process of getting into the funds. That way you can have better returns
Comment by karan on 25 June 2010:

Hi
i want to know for small period six/one year which funds are good to invest

1> liquid fund
Some best performing Liquid mutual fund:
LIC LIQUID FUND – GROWTH PLAN
HDFC Liquid Fund – Growth
Birla Cash Plus – Retail – Growth
HDFC Cash Management Fund – Saving Plus – Growth
Magnum Insta Cash Fund Liquid Floater Plan – Growth
HDFC Cash Management Fund-Savings-Growth

——————————————–
2>
Birla SL Dividend Yield (G)
HDFC Equity Fund (G)
ICICI Pru Dynamic Plan (G)
Reliance Equity Oppor – RP (G)
Reliance Growth Fund – RP (G).
——————————————-

out of 1> and 2> list which are best to invest.

can i purchase from next month 1 (first) date for small period six month/one year.
Comment by karan on 25 June 2010:

i didn’t get reply to this

now nifity improves. can i purchase for six month or one year from next month as you told.
in previous talk

Karan, yes you have a good list of funds but I did not want you to do the investment when we see Nifty close to 5200 but when it corrects 5% from 5200 level or any peak you can do the process of getting into the funds. That way you can have better returns.
——————————————————
I want to invest for short period six month/one year

1>
LIC LIQUID FUND – GROWTH PLANHDFC Liquid Fund – GrowthBirla Cash Plus – Retail – GrowthHDFC Cash Management Fund – Saving Plus – GrowthMagnum Insta Cash Fund Liquid Floater Plan – Growth
————————————–
2> Birla SL Dividend Yield (G)
HDFC Equity Fund (G)
ICICI Pru Dynamic Plan (G)
Reliance Equity Oppor – RP (G)
Reliance Growth Fund – RP (G).

for small period investment out of 1st and econd which one is best
Comment by Shabbir Bhimani on 25 June 2010:

Very wrong. You should redeem the one that is not performing and keep the one that is.
Comment by karan on 25 June 2010:

i was waiting for ur reply .
May be i asked wrong.thats was u r not giving reply.
Comment by Durga on 26 June 2010:

Hi Shabbir,i got your point for redeem the units,but i did not get the answer for investing in one fund compared to invest in two funds.
Comment by Shabbir Bhimani on 26 June 2010:

I thought you were quoting and replying to some one else’s question.

I still do not see what you say here

now nifity improves. can i purchase for six month or one year from next month as you told. in previous talk

I see that nifty has moved from 5200 to 5300 and that is not correction. I told you previously that you should invest when it correct 5% and not when it improves.
Comment by Shabbir Bhimani on 26 June 2010:

Durga, Its fine to invest in one or more than one because there is nothing to choose between the two.
Comment by Sanjeev on 28 June 2010:

Hi Sir

My first question is can i change my option from growth to dividend in SIP.I have taken four SIPs Canara rebecco tax saver,Fidelity tax saver ,tauras tax shield,HSBC equity tax saver.i m paying 1000 per month for these SIPs.they are growth oriented,should i change them to dividend .can i do this and if i can which among these should i convert to dividend option.
Comment by Shabbir Bhimani on 28 June 2010:

Sanjeev, your best person to answer this question is the fund house as I have no idea on that line and have not tried the same.
Comment by Durga on 1 July 2010:

Hi shabbir,one year back i have taken ULIP(Rs3k SIP) from HDFC. (HDFC Standard – Unit Linked Endowment Plus II – Balanced Managed Fund II).

I am having long term plan,i want to use this money after 10 years.

Now i want to switch the plan to Growth,here are my doubts

1)How effectively i can make use of switch option,like switching to Growth plan
2)what are the factors i need to consider before using switch option.
Comment by Shabbir Bhimani on 1 July 2010:

Durga, There should not be any issue in the switch and it should be as simple as few clicks or if it is manual and written letter should do it for you.

Factors when switching from Growth to Dividend is hardly anything because performance of both the schemes are always same or similar and unless you want regular income you should opt for Growth and see why http://shabbir.in/growth-or-dividend/
Comment by Durga on 2 July 2010:

I think u mistaken me, i am 24 years old,my current ULIP plan was equity managed fund(60 to 90% in equity and 10 to 40% debt).Current NAV for this fund is 10.50.Right now i am having 940 units(Rs9870).

Now i want to switch to Growth plan(100% equity).Now current NAV of Growth plan is 9.44.

Is it a good decision to switch to Growth plan??
Comment by Shabbir Bhimani on 2 July 2010:

Durga, yes I am not able to get you. Can you tell me the complete name of the fund you are in and complete name of the fund you want to move to?
Comment by durga on 5 July 2010:

Name of the fund is HDFC Standard – Unit Linked Endowment Plus II – Equity Fund II.I want to move to Unit Linked Endowment Plus II – Growth Fund II.
Comment by Shabbir Bhimani on 5 July 2010:

Durga, You are trying to make a switch within the fund and so this should be fine with you and as you are not looking for money for a long period of time Growth should not be a bad option to be in.
Comment by SHEKHAR MEENA on 5 July 2010:

I WANT TO INVEST 70000 RS/- IN STP PLEASE ADVICE WHICH STP IS BEST AND WHERE I SHOULD GET MORE RETURN WITH LESS RISK, I AM HAVING 1000/- RS SIP IN HDFC TAX SAVER (G) AND 1000/- RS SIP IN HDFC TOP 200 (G), SHOULD I INVEST STP IN HDFC TAX SAVER (G).
Comment by Shabbir Bhimani on 6 July 2010:

Shekhar, You should only invest in Tax saving fund if you want to save tax and not as an investment objective
Comment by Kalpesh Shah on 6 July 2010:

Dear Shekhar

I advise u if u hv net banking fascility at ur home then invest 70000 Rs step by step.Dont invest simultanously. It is not the time to invest whole ammount together.
Contact me +91 9824346834
Comment by skintop on 10 July 2010:

Hi,

Actually i would like to invest in any ELSS Mutual Fund in SIP.
Can u suggest me any 3 plans for me which will yield good return.
I can invest 3000/month (1000 rs in each plan).
Comment by Shabbir Bhimani on 10 July 2010:

Skintop, In the post I have done that only. You can choose based on your liking any three.
Comment by shray on 10 July 2010:

dear shabbir ji
I want to invest 30000 as STP and also getting tax saving purpose
so please advice to the same
Comment by shray on 10 July 2010:

dear sir
please reply your suggestion
Comment by Shabbir Bhimani on 11 July 2010:

I have suggested you the best tax saving funds according to me and what else suggestion you want Shray?
Comment by shray on 11 July 2010:

you suggest to me my daughter (5 yrs old) education which is to require after 10 to 15 yrs and to save the tax at present. both conditions are very important for me
Comment by Kalpesh Shah on 12 July 2010:

Hey dear shray,

U contact me +91 9824346834. What’s ur plan?
Comment by Kalpesh Shah on 12 July 2010:

Hey skintop
contact me on +919824346834
Comment by syam on 16 July 2010:

Sir,
Iam inveting in princepal personal tax saver as SIP growh option from 2 years _1500/- per month.
plese tell me if should continue or swithch for some other good fund??
Comment by skintop on 16 July 2010:

Hi Shray/ Any one,

Can u pls suggest me to pay for SIP which date (like 1st, 7th, 14th, 21st, 28th) I need to choose?

If choose which date I can get more Units to buy for my account?(month end or start / mid of the month)
Comment by Shabbir Bhimani on 17 July 2010:

Syam, I do not see a reason to switch to other Tax saving funds as Principal Tax saving fund is very good one.
Comment by Shabbir Bhimani on 17 July 2010:

Skintop, It does not matter which date you buy your SIP.
Comment by skintop on 22 July 2010:

Hi friends,

I am going to invest 20k in SBI Magnum Tax gain Mutual fund & HDFC tax Saver shortly.
But I am confused which option (Growth ,dividend ) is better to go with.
Can anyone tel me the pros and cons of these options.
Comment by Shabbir Bhimani on 22 July 2010:

skintop, check http://shabbir.in/growth-or-dividend/
Comment by Mothilal on 8 August 2010:

Hi Shabbir,

Thanks for the superb posts. So much useful for all of us.
Please give me clarity on the below. I’m 25 years.

1. I am planing to start SIP in HDFC Taxsaver ELSS scheme-Growth from this august for Rs.3500- Is it the correct decision as i choosen only 1 fund. Or what else fund is correct option.(For tax saving purpose)

2. Now the market is at its peak. Is it good to start investment now?

3. I planned to buy 1 unit of Gold ETF every month. I dont know which gold ETF is best. May i buy that in SIP option? I don’t have demat account only having icici investment account. Whether its possible to buy gold using icici investment account?

Thanks in advance.
Comment by Shabbir Bhimani on 9 August 2010:

Mothilal, I think you have taken the right decision for SIP at higher markets and one or more fund does not make a difference in ELSS but I will suggest dividend and not growth and see why here – http://shabbir.in/growth-or-dividend/ and http://shabbir.in/dividend-or-return-tax-saving-funds/

I am not sure about ICICI investment account and you need to ask them and if you plan to Buy Gold ETF the name does not matter because there is hardly any ETF which will be different from others.
Comment by Aanand on 18 August 2010:

In the list of best funds that have given good dividend, the latest dates and percentage is not included, can you please tell me the latest figures.

If the fund is yet to give dividend , can I get into that fund and be eligible to receive the dividend.
Comment by Shabbir Bhimani on 19 August 2010:

Aanand, Check out http://shabbir.in/dividend-history-mutual-funds/ for finding the latest dividend dates.

Also you can invest just one day before the dividend and be eligible for it as well.
Comment by Raj on 23 August 2010:

I had invested 25k in Tata indo global fund which in 0ct 2007, till yet its not performing, can we switch to any other fund before 3 year.
pls confirm abt it.
Comment by Shabbir Bhimani on 23 August 2010:

If it was ELSS fund you cannot switch or else you can switch any time.