Comments on: Best Tax Saving Funds

By: Shabbir Bhimani

Shabbir Bhimani — Mon, 30 Jan 2012 13:28:38 +0000

ROI I meant return on investment but it means same things here. No I cannot comment on whether you should wait or not because it depends on lot of other parameters like your risk appetite.

Longer or shorter term does not matter and you should be buying at the right time and at the right price.

By: Radhika

Radhika — Mon, 30 Jan 2012 09:30:30 +0000

if by ROI, you mean Rate of Interest, clearly it’s very poor now. I invested when the market was at its peak (almost) and it hardly went back to those levels. Do you suggest for me to wait till I can reap benefits and then exit?

As for the outlook, I am comfortable with longer terms. But it hasn’t worked too well for me
Is there a way for me to make good returns elsewhere, short term – and possibly experiment later. I am just anxious because of waiting this long and receiving practically nothing in return.

By: Shabbir Bhimani

Shabbir Bhimani — Mon, 30 Jan 2012 09:14:04 +0000

Depends on your ROI and your outlook for the money.

By: Radhika

Radhika — Mon, 30 Jan 2012 07:49:24 +0000

I’ve invested in the following tax savers since 2007:

ICICI PRUDENTIAL TAX PLAN-DP 15,000
KOTAK TAX SAVER (ELSS)-GROWTH 10,000

SBI TAX ADVANTAGE FUND 10,000
SUNDARAM BNP PAR TAX SAVER-DP 10,000
SUNDARAM BNP PAR TAX SAVER-GP 12,000

My lock-in period is complete. I was hoping to receive advice on liquidating and re-investing, this time to earn good returns as opposed to tax gains. Your insights will be appreciated.

Thank you

By: Shabbir Bhimani

Shabbir Bhimani — Fri, 09 Sep 2011 12:37:10 +0000

I don’t track that fund and so cannot say much but if it is not done in the last 3 years there is very little chance of it performing in future.

By: Shabbir Bhimani

Shabbir Bhimani — Fri, 09 Sep 2011 12:36:16 +0000

There is no entry load and for investment of more than 1 year most funds have no exit load.

By: Rupinder

Rupinder — Fri, 09 Sep 2011 09:03:57 +0000

I had invested 25000 in Tata Indo global fund ,,after 3 years still fund value is very low…wht u say…..abt future abt this fund

By: Vicky

Vicky — Fri, 09 Sep 2011 08:59:00 +0000

So in simple words.. after investing 1000 PM for three years. i have invested 36,000 and after three years suppose unit price is 150 and overall i have 300 units. So it means that when i will took my money out from the fund after three years i would get .. 45000 in my hand. ( i didn’t considered the charges or exit load )

By: Shabbir Bhimani

Shabbir Bhimani — Fri, 09 Sep 2011 08:47:36 +0000

Vicky, you are correct. You have 40 units and as the current price is 100 your investment of 3000 is 4000 but remember in the second month when you purchased it at 50 Rs your actual 1000 Rs was 500 Rs and so a loss of 500. Don’t miss that part as well.

By: Vicky

Vicky — Fri, 09 Sep 2011 08:34:01 +0000

Shabbir,

but if suppose i am invesing 1000 PM so for that particular month i purchased 10 units as an example (Suppose 1 unit price is 100).
In the nest month unit price is 50 and as per my SIP i purchased 20 units. So my total units are 30 and in the third month unit price is again back to 100. so my total investment is something around 3000 and my profit is 1000 so total would be 4000 .. pls correct me if i am wrong .. it’s littile bit .. frustrating question for professionals like you .. but as i am completely new to everything and i don’t even know the basics about it .. so i am just trying to simplify it ..

By: Shabbir Bhimani

Shabbir Bhimani — Fri, 09 Sep 2011 08:17:48 +0000

SIP means systematic investment plan which means you invest some amount after a predetermined interval usually a month.

How much you would get depends on how your fund has performed and no one can predict as of now Vicky.

By: Vicky

Vicky — Fri, 09 Sep 2011 06:37:02 +0000

Hi Shabbir,

I am new to everything. Market-Mutual Fund – Dividend – SIP – Equity … what my concern is i invested 1000 in HDFC Tax Saver, It’s SIP .. does that mean i must have to invest 1000 pm ?
my another question is, as i am investing 1000 PM, so how my returns would be calculated and after three years how much amount i would get.
Please explain me in simple way.

By: Shabbir Bhimani

Shabbir Bhimani — Fri, 22 Jul 2011 02:31:24 +0000

Varaprasad, For Ulips see this and let me know if you have more questions about it.

BTW I don’t think Insurance as an investment options and you can see why here http://shabbir.in/insurance-investment/

NSC and PPF are more related to debt products and for debts I would prefer Liquid plus funds which means I can get my money in few days if I need them but for NSC and PPF it is very long locking period.

By: varaprasad

varaprasad — Fri, 22 Jul 2011 02:12:33 +0000

Hi Shabbir,
I want to invest 10000.kinldy let me know the secure options
some things that I come across like
1.ULIPS + insurance cover (HDFC,AVIVA)
2.MF
3.NSC, PPF
please throw some light on insurance ULIPS

Am moreover looking for short term returns.

regards,
varaprasad

By: Shabbir Bhimani

Shabbir Bhimani — Tue, 31 May 2011 10:56:59 +0000

Gopish, at this moment SIP is better because you have lot of time left for tax saving. Now coming back to doing SIP in three funds I personally don’t do it that way and I normally invest for tax saving in a given fiscal in one fund because having 3 funds does not give you any additional benefit.