ELSS Tax saving funds will not be an option once DTC is enforced (See here) but DTC is not being enforced before March 31, 2012, so we have 2010-2011 and 2011-2012 as an option for Tax savings under ELSS. Till we have the option I am definitely going to use it to get Full tax saving without investing one lac into Best dividend paying Tax Saving Funds
But there are many question which still remains are.
- How these AMCs will treat their existing funds?
- Will these funds become yet another equity fund or will they switch the money to some other equity linked funds?
- Will they ask investor to forcibly redeem?
What are your views on DTC?