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 % |
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.
If it was ELSS fund you cannot switch or else you can switch any time.
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.
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.
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.
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.
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.
skintop, check http://shabbir.in/growth-or-dividend/
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)
Skintop, It does not matter which date you buy your SIP.
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??
Syam, I do not see a reason to switch to other Tax saving funds as Principal Tax saving fund is very good one.
Hey skintop
contact me on +919824346834
Hey dear shray,
U contact me +91 9824346834. What’s ur plan?
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
dear sir
please reply your suggestion
I have suggested you the best tax saving funds according to me and what else suggestion you want Shray?
dear shabbir ji
I want to invest 30000 as STP and also getting tax saving purpose
so please advice to the same
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).
Skintop, In the post I have done that only. You can choose based on your liking any three.
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
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).
Shekhar, You should only invest in Tax saving fund if you want to save tax and not as an investment objective
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.
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.
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??
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?
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.
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/
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.
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.
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.
Durga, Its fine to invest in one or more than one because there is nothing to choose between the two.
i was waiting for ur reply .
May be i asked wrong.thats was u r not giving reply.
I thought you were quoting and replying to some one else’s question.
I still do not see what you say here
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.
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
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.
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
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 🙂
Very wrong. You should redeem the one that is not performing and keep the one that is.
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)?
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.
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.
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.
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.
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 .
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.
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.
Always first
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
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.
Hi,
I am very strong in math.but i am new to mutual fund thats why asked.
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
how much return till now .
Karan, you seems to be weak in maths? Its simple calculation of current value – amount invested.
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
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.
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.
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%
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.
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
Investing at such high would not be of any benefit and wait for a correction of 4-5%
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
What is the purchase rate?
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
Karan, If your aim is Tax Saving why those names and not the ones that are best in the business.
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.
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.
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.
Karan, I will not suggest SBI funds for that long.
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
Karan, See http://shabbir.in/dividend-or-return-tax-saving-funds/
So do u suggest that i invest only in one fund whatever i want to invest?
Parag, I will suggest lesser list of funds.
So that even if one of them performs not so well, the other fund compensates.
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.
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?
Parag, Any reason for 3 funds and not one?
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 ?
What is your take on
1. SBI PSU Fund
2. Birla Sunlife new fund
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”
Hitesh, you are trying to break a rule and so deductions is inevitable.
HI
Is there any specfic date to purchase sip tax mutual fund?
profit point of view.
No. I dont think so.
thanks a lot