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 % |
Dear Shabbir,
I just open a PPF account in SBI. Could you plz tell me how the amount is compounded either on monthly basis or quarterly basis.
Regards,
Munish Singh
I have not watched my PPF account for last 5 years and so cannot comment on those numbers.
I am doing some tax saver fund purchase within a day or two.
Is it advisable to purchase when the market(snx/nfty) if down, to have a low NAV and get more Units.
Yes, my plan is LongTerm – 3yrs
Anand, We have very short time left to purchase ELSS funds and so I don’t think you should wait long enough but go for 2 step purchase at the max.
Hi Shabbir,
I am earning 40K per month. As of now i have invested 30k per year in LIC. Now i would like to invest another 50K per year for tax saving purpose. Could you please suggest me one good option for which i should get good returns and tax benfits.
Also i heared LIC will come under DTC(Direct tax code) in future. Is this is true?
Thanks,
Srikanth
Yes. This is the last year for you to opt for ELSS MF. Next Fiscal year onwards we will not have tax saving MFs and so you have to go to Insurance forcibly
Thanks for your quick reply. Please suggest me some good insurence plan.
Also I would like to go for PPF or NSF. Please let me know is this is good option? If it is good which one can i choose PPF or NSF?
Thanks,
Srikanth
Please read NSF as NSC (National Savings Certificate)
I am not the person who think insurance at all. See http://shabbir.in/insurance-investment/
hi Shabbir,
Congrats for the goood work ur Doing.
I am planning to invest 50000 in ELSS(as i need to show for my taxes).its already december, so planning to invest as Lump sum amount in following three
Can robeco tax saver(G)-20000
Fidelity tax saver(G)-20000
HDFC Tax saver(G)-10000
Can u suggest, that the Fund i took are good(as i am new to investing)?
Is Lump sum Investing is Good Now?
Do i need to go for Three funds or two Funds?if so suggest two??
Expexting ur reply..
Lumpsum investing is not good in volatile market but I think you have very little choice left. Make a 15k+ in each each month.
Also make sure you have your KYC done ( see here ) or else you will not be able to invest in MF’s
what about the choice of MF(ELSS) selected
Yes they are fine.
hi!
i want to invest rs 35000 for tax saving purpose ..can u suggest me best investment plan…
waiting for ur reply
The post itself suggests the best plans
Hi Shabbir,
I am planning for the first time to invest in ELSS scheme (Growth) for tax saving purpose. I can invest upto an amount of 50,000/- right now.
Could you suggest me which ELSS scheme is better to invest at this time?
HDFC Tax saver or sundaram BNP Paribas tax saver or Canara Robeca tax saver or anything else.
Guidance needed.
Thanks in advance.
Sankar
I will suggest do SIP investment instead of lumpsum because market is not out right positive. The choice can be any one of the funds you mention.
since i need to seal my tax saving slab of 1 lakhs i hv taken policy of LIC (Jeevan Anand) for a value of 5 lakhs (Annual Payment – 25000/-). Policy term – 21 yrs. 18000 in PF deduction.
Remainig i need to invest within this February for availing tax deduction.
So suggest me how i can invest the lumpsum amount in SIP withing shorter duration.
Take a larger SIP amount Sankar, 6k Per month
I am interested in investing SBI magnum & birla sun life. Whom to contact & how to contact. Need some details
Hi
Please tell me what are the best MF right now for Tax seaving?
I want to invest around 30k so please let me know how do I manage this.
Thanks in advance,
Deepesh S
I will still rate the ones I have above.
HI
can you give me link.
I tried but not getting for
Why don’t you check them yourself at ValueResearchOnline.com
Thanks
See http://new.valueresearchonline.com/
Got it from yahoo finance -> historical datas… Thanks again… Tk care.. 🙂
Regards,
Ravi
My pleasure.
HI
can you tell me out of this fund,which is best
in terms of returns.
icici prudential pension fund
idfc pension fund managent company
kotak mahindra pension fund LTd
reliance capital pension fund LTd
sbi pension fund pvt ltd
UTI retirement solutions ltd
————————————-
Thanks
Neelam, Why don’t you check them yourself at ValueResearchOnline.com
Shabbir,
Is there any website from which we can able to find All Time High or All Time Low of any share ?
Sorry to ask you about Share Market question in tax saving forum, but i hope you must be having an answer of same.. 🙂
Thanks,
Ravi
See the charts in Yahoo / Google
Hi.
Iwant to invest Rs 60k in tax saving funds. Kindly advice me the funds which will be best for me keeping in view that fact that i will need the money after around 8 years time.
i need info about dividend fund name, whose frequency of dividend per year is more.
means in one year 3-4 times dividend.
Ideally no fund does that with the exception of may be monthly income funds but I am not too sure about it.
Hi shabbir,
Give me detail about ETF (like gold etf fund). Do you have any article about beginners for ETF ?.. If you don’t have article then requesting you give a link about a very BASIC information about ETF ?..
Can we opt ETF like mutual fund portfolio or demat account is necessary for that ?
Waiting for reply.
Thanks,
Ravi
Ravi, as far as I know we need to have a Demat account for ETF’s because they are not like mutual funds but mainly like stocks and are traded on the exchanges. Check out http://shabbir.in/gold-exchange-traded-funds/
Hi,
i purchase mutual fund tax saver with dividend option.
Can i change this to growth option now.
Thanks
Why don’t you call the fund house and inquire because I am a fan of Dividend for Tax benefits.
hi,
I read your article(insurance-investment-readers-viewpoint)
and go through this.
——————————————————————
option:If you have option of being insured and also get higher return by combining term insurance and mutual funds.
—————————————————————-
can you tell me best policy for this option.
Thanks
Neelam
LIC Term insurance combined with any of the best equity linked fund
i am not getting clearly investment horizon of 1+ year.
———————————————
i want to invest long term may be five year on sip basis
HDFC Equity Fund (G)
choice of this fund is okay or can u suggest me some other.
Thanks
Choice is OK and it will be tax free for any investment time horizon of more than one year.
hi
i need tax info on mutual fund.
if i take simple mid cap fund with my name and after five year suppose getting excellent return 500%.is there any tax will be on this return.
500% is assumption , it can be more also.
if tax will be there tell me limit
No. All equity investment returns including Equity MF will be tax free for investment horizon of 1+ year
I want to invest 40000 in tax saver plan. Since the market at its all time high, would it be a good decision to invest in MF or I should go for some other options.
Thanks
I think this is the last time you can opt for ELSS funds as with new direct tax code takes ELSS funds out of the picture. So Invest in MF and go with SIP
hi Shabbir
I have a question about PACL Investment. I heard about it that it gives 12.5% interest. Is it right? I want your suggestion on this. I want to invest in this 10k per year. Please suggest me & tell me somthing about PACL Investment.
Thanks
Krishan
I have no personal experience and so cannot comment on them.
Thanks for informative post. I have observed that you have given higher ratings to those ELSS schemes that have declared higher Dividend. I feel that it should not be the criteria as dividend is paid out of the growth that has happened & NAV goes down to that extent. The only advantange of Dividend is that your money is unlocked well before the 3-year lockin.
What is your current Ratings on ELSS Fund & Diversified Funds ?
I had invested in Principal Tax Saver which is laggard among its peers. My lock-in period is over recently and I am at break-even level. Should I exit as its not performing well compared to its peers.
Furqan, No I do not rate all funds based on dividends but yes I do rate ELSS funds based on dividends because of my aim to save tax and liquidate as well. See my article – http://shabbir.in/growth-or-dividend/
Now if you are breaking even after 3 years out of growth fund it is a loss of returns but I guess if you think it is not good you should move to some other good funds.
hi
which one is good dividend/growth.
I calculated profit in both terms sometimes growth is giving excellent return then dividend.
Hi Neelam, See http://shabbir.in/growth-or-dividend/ It is always the growth that gives better returns but then if you investment objective is no liquidation for an elongated period I think you should opt for growth
hi
this is new fund. can u tell me how to check performance of fund and take decision whether to purchase or not.
Reliance Regular Savings Fund – Balanced Option (D)
Thanks
Neelam I will suggest you valueresearchonline.com website for this.
Hi Shabbir,
Hope you are doing good.
I have query here. I was suggested to go for IDFC Fund for my SIP plan by a consultant. Before I did open the plan, i am told IDFC Fund manager is replaced and suggested not to go for IDFC Mid cap rather choose HDFC Top 200 Large cap. Your suggestion/review on this please. I am planning to invest 2000Rs.
Also wanted your review on Fidelity tax advantage fund.
Thanks
Prashant.
Hey Shabbir,
How will you like to rate “DSP Black rock Micro Cap Fund”…
rather than tax saving investment of 80C & 80CCF, i like to go now with equity based open ended mutual fund..
i am having 2000 rs/month in spare, additional amount which i can invest in such funds.. i am planning to do 2 SIPs… 1000 rs/month for DSP BLack rock micro fund… and another 1000 rs/month for HDFC TOP 200 funds for divertification purpose..
am i right ?… actually i am somewhat unaware about DSP blackrock micro fund (just got suggested by few friends) thats why asking to you for advice.
Thanks.
Regards,
Ravi 🙂
Ravi check out – http://shabbir.in/best-midcap-funds/
Hi Shabbir,
i have invested some money in various mf’s like uti dividend yield,sbi contra,reliance diversified power,reliance vision.now i want to know that can i switch over the amounts in the elss funds of that respective fund houses?
I am not too sure about this as I have not done this myself but I think you should be able to do the switches.
hi
can u tell me some good funds i want to invest
1000. per month for 10 years.its not tax save funds
thanks
aanup
Check http://shabbir.in/best-midcap-funds/
hi shabbir,
i have sbi magnum tax gain for quite a good time. Now want to invest in Fidelity Tax saver .
Pls suggest if the chioce is good .
sachin
Yes a better choice
My choice, I had invested in HDFC tax saver, DSP Black Rock Tax Saver Funds and Fidelity Tax saver funds
Hi Shabbir,
I am in a dilemma to choose between HDFC Tax saver & SBI Magnum Tax gain for SIP investment? I feel some of these schemes present the similar growth criterias, in such case how to get to the good schemes?
Waiting for your reply.
I personally prefer HDFC because SBI contra is the only fund performing by the SBI fund house and others are not as good as others.
Dear Shabbir,
Please tell us on doing daily STP, how much it will cost and how it would be useful.
Generally how much is the charge for doing a SIP.
regds,
anaand
No charges for any MF investment but do verify with your broker before doing it.
Hi Shabbir,
My daughter is 11 years old, and I want to invest the money in such away that I can get an amount arround Rs. 15 lac after 11 years when she will be 22 – 23 years of age. can u pls suggest for the best suitable saving plan.
Thanks & Regards’
Anand
Anand, I am an equity trader and not a financial consultant. You need to consult your financial consultant but I can suggest you do read – http://shabbir.in/insurance-investment/
HI Shabbir
good morning
I want to invest 100K without tax saving. can you tell me the best option in stock & MF. And Please tell me the best accorting to today market. i can invest it for three years.
Thanks
Krishan
Krishan, See http://shabbir.in/best-midcap-funds/ & http://shabbir.in/mutual-funds-better-than-stocks/
Shabbir,
I have gone through your article & understood that you don’t believe in ULIP & Insurance as well as understood the reason for same.
But in such high index, can you suggest some specific TAX SAVING mutual funds which can perform well even after next 3 years (based on your experience/ prediction) ?
Thanks.
Ravi
I think better funds will definitely perform well and the list of best funds are good enough to perform well and instead of investing lumpsum try doing SIP into those funds.
Now also this is the last time you have a chance to invest in ELSS because new direct tac code or DTC takes ELSS out of the equation from next year.
Hi Shabbir,
I have invested in to open ended ELSS mutual funds last year which is having a locing period of three years.
Can I liquidate them before maturity? if thats the case then how much exit load i would be paying?
The MFs are Fidelity Tax Advantage and BSL tax relief 96, both are growth funds.
Thanks,
Vinish
No Vinish, you cannot liquidate before the locking period and if you try it will get rejected.
Hi Shabbir,
I have 2 policies right now, Birla Freedom 58 (without life cover) & LIC Market plus-191 (without life cover) & annually paying 10K Rs in each. Both are in 100% equity investment option (high risk high return form).
For birla Freedom 58, Just now i have switched to 75% government & 25% equity (some what safer zone) because of high volatality of market in this level.
Can you suggest for LIC Market plus-191, should i switch from 100% equity to some 50-50 ratio ?… Can you give some link for brochure of market plus-191, as i have already searched site but i could not able to found out from licindia website.. Is this plan is still open or closed ?
What should be best tax saving investment for current year, as market is around 20.5K level..?..
Note: started both policies in last year only.
Waiting for your reply.
Thanks.
I am not an LIC and non-insurance investor and see why in my article Is Insurance an Investment Option?. Again for tax saving I still think it will be ELSS funds only.
i am not getting your ans
I am asking for maximum return
,it needs any modification there.
They are good funds and if you are getting the returns from them then you do not need to do anything
Hi,
I have invested money in these funds
in dec 2007
ICICI Prudential Tax Plan-Growth
Reliance Tax Saver (ELSS) Fund – Growth
Tata Tax Saving Fund dividend payout
HDFC Tax Saver 96-Growth
lock perios is over 2010
———————————-
can u suggest any modification require means
growth to dividend to get good return .
thanks
What kins of return you made on them?
hi
i started sip for tax saver fund( six fund 2000 each)
from agugust.
now market is gng high
shall i continue my sip or stop
what u sugest.
thanks
I think you should continue with your tax saving SIP because you anyway need to be doing Tax Saving but you can decrease the amount and use the uninvested amount now to invest in a correction.
Hi Shabbir,
I was following ur blogs today. But still i m very confused in investing.
For the start i wish to invest 5K-6K in monthly SIP’s for tax saving purpose.
As market has already crossed 20K. Is this is the rite time?
If so, in present scenario can u please suggest me the Mutual Funds for tax saving in which i shd invest strating from today.
Can u also give me a breakup of amounts i shd invest in the mutual funds u mentioned..
Awaiting ur earnest reply.
– Gaurav
9890428850 pune
Gaurav, ELSS funds is what I have shared here and what else you want. Also I will suggest SIP but not lumpsum investment in such a high market
today is right time to invest as nifty going down
Its just one day and let the market see a dip of at least 3 trading sessions before going for an investment.
what abt debt funds . investing in these funds are okay
Yes Ashu, It is ok
i want to invest 10000/ for six month in this fund.
Birla Sun Life Dividend Yield Plus (D)
it it okay or sugest me any other good fund.
is it right time to invest for short period.
Hi,
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
Ashu, Check out http://shabbir.in/best-midcap-funds/
what i understood is it correct.
shall i took in lumpsum now and
after 5800+ go for sip,is it correct
No. You should do SIP as market is very near to all time high
hi
i took sip 1000/ in june july and august.
I obseerved sip(nav) going increase from june to august and units decrease.
can u tell me what is good time to invest
as nifity rising daily.
i want to invest between september 2010 to march 2011,
shall i invest now in lumpsum not in sip.
No way you should invest in lumpsum when things go up and SIP is the only option when nifty is at 5800+
I invested in SBI Magnum Tax Gain Dividend ELSS fund, The Lockin period for my investment is over.
Now If I switch it to SBI Magnum Tax Gain Growth ELSS fund, Then will i get Tax relaxation under section 80 C of Income Tax Rules.
Yes you should but it is better if you move out and then again move in so that there is no confusion
Thanks. Market in general is your advice.Could you please explain more about it like how to invest etc.
Follow the latest post in blogs as I do that very often.
Hi. I am earning around 25k.Take home is 22710.I pay 1696 for pf + vpf.So i wil get 21014 in hand. I pay 4k as loan emi. I have 2 lic policies(3060 & 2066) quaterly. 7550 is my expenditure.I have 9500 to save. I would like to invest in ELSS SIP or in market in general.Could you please advice.
Market in general will be your best choice as I do not see a reason to opt for a locking period of 3 yrs.