List of some of the best Tax Saving mutual funds. The list of funds selected are based on criteria of consistent dividend for a long period of time.
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 % |
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
I have done that in the post itself karan.
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
Karan, All are best and you can choose any one
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
You can do a SIP in one fund. Why 4
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.
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.
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
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
Reddy, Check out http://shabbir.in/dividend-history-mutual-funds/
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?
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.
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.
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.
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?
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.
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 .
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
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
Karan, It is better to go with SIP mode looking at the market ahead.
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.
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/
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
Yes Akshita, you can.
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.
Barsan, I will also suggest you read http://shabbir.in/growth-or-dividend/ before you take the final step
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.
I guess it is 1500 and not 1500k and you are not bad in selecting the funds.
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.
Hi Shabbir,
can u suggest me some good equity diversified funds ?
also should i invest it a lump sum or sip?
Hitesh
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.
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
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.
@aditya singh – Check the article I have just published on SIP – http://shabbir.in/best-tips-on-systemtic-investment-plan/
Hi
Are you discussing stock market also.
thanks a lot
Thanks a lot.Can you tell me pension saving scheme.
which bank pension saving scheme is good.how i can select.
Karan, I think you need to ask your financial advisor that
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.
Karan, Its perfectly OK
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?
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
Thanks a lot sabir
The pleasure is all mine.
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.
Karan, here is the link http://shabbir.in/subscribe.html
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.
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.
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
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.
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?
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?
Tarun, do not believe your broker as I am sure he is after his commission more.
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
Tarun, Go for things where you make the least loss as that is the only thing I an suggest.
Hi sabir,
I want to know about pension saving scheme.
which bank is having good pension scheme.
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.
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
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.
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
Hi,
I need to know what is the best tax savor plan currently and 100 safe to invest in terms of good returns.
Abhishek, returns and safety cannot come hand in hand. You have to sacrifice one for the sake of other.
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
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.
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..
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.
Shabbir Bhai, I think we need more people like Hiten. They play the role of Devils Advocate.
i want to invest 100000 in elss pl advise best scheme
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…
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/
I WANT TO INVEST RS. 1.00 LACS WITH A VIEW TO HAVE PENSION – FIXED MONTHLY INCOME AFTER 13 YEARS.
PLEASE SUGGEST.
REGARDS
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.
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…
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.
kanchana, Please read http://shabbir.in/better-way-to-save-tax/
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.
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.
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
Satish see http://shabbir.in/dividend-history-mutual-funds/
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.
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
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.
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?
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/
Why Not ???
1 Lac for 30 days.
– 30 days is a lot.
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