[May 2020] Best ELSS funds for 2020 – Top Performing Tax Saving Mutual funds for Investment

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Equity Linked Savings Scheme (ELSS) Mutual Funds are one of the popular 80C tax saving options for savvy investors. ELSS is a diversified equity mutual fund which has a majority of the corpus invested in equities.

Overview of ELSS Funds


  • It is a diversified equity mutual fund
  • There is a lock in period of 3 years from the date of investment. You can remain invested even after 3 years and can withdraw anytime after that lockin. You should not be rushing to sell after the lock in period. 
  • Returns from ELSS Schemes are tax free. As the investments are in shares, it is subject to market volatility, so you should have longer time frame in mind.
  • There is no limit of investment in ELSS Funds, but you can claim Tax deduction upto Rs 1.50 Lakh under Section 80C of Income Tax ActRead – Other Tax Saving Options u/s 80C

It is always better to invest

  • via SIP mode rather than lumpsum (for cost averaging)
  • in GROWTH Option   (for wealth accumulation)
  • in DIRECT Plan ( to save costs & higher returns)

Best and Top performing ELSS Mutual Funds – which you can consider investing in 2020


The table below gives you the details of historic returns for some of the best performing ELSS mutual funds.  You may notice that the returns for last couple of years have not been great due to market conditions.  When you are investing in Equity funds, you should always have a long term plan to stay invested as markets may be choppy in short term.

Top and Best performing ELSS Funds:

      • Axis Long term Equity
      • BOB AXA Tax Advantage
      • Canara Robeco Equity Tax Saver
      • Mirae Asset tax Saver
      • Kotak Tax Saver

Year on Year returns:  While the above tables give you the view of cumulative returns historically, it is also better to see the returns achieved each year. This will show the fact that returns may not be consistent every year. There will be years where the returns are good with some year may have bad performance due to market situations. So, the investment in funds should always be from the long term perspective to manage any timing bias.

You can see that the returns since start of this year, the returns have not been that great, and one can take a view that it is good time to invest as the markets are down.

SIP Returns:  When investing in funds, you should invest systematically every month (via SIP) as it reduces your risk through averaging your cost price.  See below the returns for same funds if you had invested monthly via SIP. 

Everyone know that one can make money by “Buying at Lows and Selling at Highs” , but when it comes to practice, they don’t follow the same. When the markets are down, the sentiments are down, people  do not want to invest , but it should be other way around. When the markets are down, you should start thinking about investing. Investment through SIP allows to invest consistently and take advantage of market conditions.

Myths:


      • Invest in ELSS funds in lumpsum in March –  Many taxpayers invests in ELSS funds right at the end in March to get the tax benefit. It is advisable that you plan ahead and invest monthly rather than lumpsum. This will help you to average out the cost and risk. 
      • Rushing to sell ELSS funds after maturity of 3 years:  Many investors think that ELSS have maturity period of 3 years and will be redeemed after that. Note that ELSS fund doesnot have any maturity period (like insurance / ULIPs etc), but there is a lockin period of 3 years.  You cannot sell the ELSS funds before 3 years as tax deduction was claimed. After 3 years, you are free to sell but you are not forced to sell. You can keep the investment as long as you want.  It is one way to get equity exposure in your portfolio.
      • ELSS fiunds are risk free –  ELSS Funds gives tax deductions u/s 80C, but they are not risk free like PPF etc, as the underlying investment is in Equity market. So, you should invest in ELSS as per your risk appetite.

Summary


  • If you have not exhausted your 80C limit, then you should definitely consider ELSS investment.
  • Don’t rush to invest in March but can invest through SIP over the period.
  • Don’t rush to redeem after 3 years.

Related Posts


Queries 


If you have any queries, please use the comments box below

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941 COMMENTS

  1. ELSS is a category of diversified equity mutual fund that qualifies for tax exemption under section 80C of the income tax. ELSS has generated returns between 12% to 20%.

  2. I found investing in ELSS to be highly beneficial, primarily due to the high level of returns that it gave me and also due to the fact that I was able to save on taxation through it. Anyone interested in getting high financial returns from their investments will find ELSS to provide them with maximum returns in a period that is quite short compared to other wealth gain investment periods.

    • Hi Jignesh, Good to hear that you have benefited from ELSS funds. However, note that the equity funds (inc ELSS) are higher risk and investors should have long term view rather than short term. In short term, market may give small/ negative returns.

  3. Thank you for sharing this information,as i was thinking for investing in Elss funds now i got some idea.Thanks for the details.Hope you will keep on posting to update us.

  4. Hi,

    Of the 1.5 lakhs exempted uder 80c Have to invest around Rs. 1.2 lakhs in ELSS. The rest is being invested in PPF and a small LIC Policy. Need advice on the following:
    1. Funds to invest in the current year. i am looking to stay invested in the same for the next 7-10 years.
    2. How many funds is it advisable to invest in. 1, 2 3, 4?
    3. Proportionate amount to be divided in each of the funds.

    Thanks.

    • Hi Trevor, I hope you have selected the funds based on the post above. You can consider in investing 3 funds with different dates. Also, for this year, try to make the ELSS investment monthly rather then lump-sum in last quarter.

  5. Hi Vivek,

    I am 24yrs old 36k is my monthly income.

    I want to invest 13k for tax saving for f.y 2016-2017. and i want to invest into ELSS fund, i thought of investing into:
    1. Axis long term equity fund (g)
    2. Reliance Tax saver fund (G)
    3. Motilal oswal most focused long term fund- Regular plan. ( Suggested by my agent as it provided 21.35% return in 1yr).

    So want you to pls. suggest whether to go forward and invest into these or should select better plan.
    one more thing i want to invest into 3funds for diversification purpose but my agent is suggesting to invest only into 2 funds (reliance and Motilal oswal).

    kindly suggest. also i am looking for long term purpose (7-8yrs)

    Thanks,
    Ullash

  6. Hi Vivek,
    Regards to trialling comments of mine i want to invrst on mutual funds for longer period of 25 years.k indly suggest some Sip plans which are tax beneficial with breakage of 6500rs and provides good returns for future

    • Hi Himanshu,

      How much is the amount which you intend to invest monthly.
      How much is your total income – to determine if you are paying any taxes?
      Are you claiming 80C deduction for 1.50 lakhs already

  7. Can you pls suggest two or three best ELSS sip funds to invest for long term goals… I’m planning to invest 7500 to 8000 per month..

    I am planning to invest in ELSS Mutual funds SIP.

    I am planning to invest 7500 to 8000.
    Also planning to invest in the beginning of the month one sip on all mutual funds, middle of the month one sip on all mutual funds and end of the month of the month one sip on all mutual funds..

    for ex: if i want to invest in axis LT tax saving fund 1500 per month. I will split 1500 into three sip’s as follows,
    between 1 to 10 date of the month 500 sip
    between 11 to 20 date of the month 500 sip
    between 21 to 30 date of the month 500 sip

    is this good method to follow or only one sip any day of the month is good.if so suggest better dates to invest sip every month.

    Pls suggest which are all elss sip mutual funds from the below list can I invest and how much i can invest on each as per ur selection:

    Axis Long Term Equity

    Birla Sun Life Tax Relief 96 D

    Franklin India Taxshield Fund

    ICICI Prudential Long Term Equity (Tax Saving)

    Reliance Tax Saver (ELSS) Fund-G

    BNP Paribas Long term 23

    DSP BlackRock Tax saver

    Sundaram Taxsaver D

    HDFC Taxsaver Fund

    • Hi Hari,

      The funds mentioned in the post above are one of the best performing funds. Over the short term, the retuns from them may be different from each other, but in long term, the returns should broadly be similar.
      You can consider splitting your investment in the following:

      DSP BR Tax Saver Fund
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G

      Regardign SIP dates, it will not make much difference if you have 1 SIP in month or 3 SIP.

  8. Hi Vivek,
    I hv invested 2000rs monthly in ppf and started lic of 6000.
    I want to invest in mutual funds but @ tax benefit. Pls suggest me plans of better returns . I want to invest 6500 rs monthly on Sip .
    Suggest me plans along with breakage of rs6500 for respective plans u suggest.
    Pls do comment on my lic amd ppf plans .is that good or some changes are required

    • Hi Hiamnshu,

      Which LIC plan have you taken?

      As you want to invest in Tax Saving Mutual funds (ELSS), you can select 2-3 funds from the post above. These are few of the best performing funds.

  9. Sir I had certain queries regarding investment in ELSS through SIP.

    1) For tax deduction, what is the upper limit that we can invest through SIP or lumpsum? Is the value different for SIP and lumpsum both?
    2) If I invest through lumpsum/SIP in this year(2016-17), would the same be considered for tax deduction for this year (2016-17)?
    3) If I start an SIP for 2 years (24 monthly installments), will the same monthly installments be considered for next year’s tax deduction as well or do I need to start a new SIP for next year?
    4) How would be the lock-in period (of 3 years for tax deduction) of SIP be decided? Is it based on the starting date of SIP investment or the date of latest SIP investment?

    I have decided to invest in the following ELSS for a term horizon of 3 years:

    Axis long term equity D(G)- 50,000/-
    Reliance Tax Saver D(G)- 50,000/-

    I am in doubt whether to invest through SIP or in lumpsum considering that I need the money by the 3rd year. Also when the market is high(& needs correction), is it advisable to invest through lumpsum now or should I wait?

    • Hi Jhalak,

      1) You can invest whatever amount you want, there is no limit. However, you can get deduction for upto Rs 1.50 lakh (in a year) under Section 80C.
      2) For investment made in FY 2016-2017, youc an claim deduction when you file return for FY 2016-2017 (AY 2017-2018).
      3) There is no need to have new SIP. The deduction is dependent on when the actual investment is made. For SIP amount paid in 2016-2017, claim can be made for FY 2016-2017 return. For SIP amount paid in 2017-2018, the claim can be made for FY 2017-2018 retun.
      4) The lockin period is for each SIP investment. i.e. for SIP amount invested in Aug 2016, the lockin will be upto Aug 2019. for SIP amount invested in Sep 2016, the lockin will be upto Sep 2019 and so on.

      5) If you need money after 3 year, then you should consider investing lumpsum. But SIP is better to average the costs. So you will need to decide based on your personal circumstances. Note that if you are investing in Equity funds, you should have long term view of 5-7 years. In 3 years, market may not give handsome returns.

  10. Hi Vivek,

    I am a first time investor in ELSS. I have chosen an SIP of Rs. 5000 pm in Axis long term equity fund via direct route. My question is- do I have to put in 5000/- every month till the lock-in period of three years is over or I can stop the SIP payments as per my discretion at some point in time prior to the expiry of three year period?

    • Hi Rajay, You can stop SIP anytime you want. The lock-in period means that you cannot sell these till 3 years. For example, for the investment made in Aug 2016, you cannot sell those units before Aug 2019.

  11. Hi,

    I had invested in Axis Long Term Equity Growth (ELSS) fund in Jan 2013 though distributor. It is more than 3 years now. If i switch to same fund Direct plan; can i claim it under deduction in 80C. Will it be a new investment.

    or i have to redeem the current one and make a fresh investment in direct plan?

    Please help.

    • When you switch to direct plan, then it is essentially selling off the old plan and investing in new one.

      The new investment (i.e. switch) will be eligible for deduction u/s 80C

  12. Dear Vivek Jain,

    I’m new to Mutual Funds….I’ve started to Invest Rs.12,000/- per month from this Feb 2016. the details are,

    Principal emerging blue chip(G) – Rs.3,000/-
    Principal large cap – R.3,000/-
    Principal smart equity fund – Rs.3,000/-
    Principal growth fund – Rs.3,000/-

    Now, I would like to invest another Rs.13,000/- every month. I took the below options from your advice.

    Reliance Tax Saver (ELSS) Fund (G) – Rs.4,000/-

    Axis Long Term Equity Fund – Regular Plan (G) – Rs.4,000/-

    ICICI Prudential R.I.G.H.T. Fund (G) – R.2,000/-

    BNP Paribas Mid Cap Fund (G) – 3,000/-

    Am i taking the right decision ? Kindly advice me on this…Thanks in advance…

    • Hi Murugan,

      First of all please let me know the annual income and the tax you pay. Also are you claiming full 1.5 lakhs benefit u/s 80C.

      ELSS funds are preferable when you want to claim deduction u/s 80C. If not, then you can also consider other equity mutual funds liek your other mutual funds (principal mf).

      1) Some of the other best performing ELSS funds (TAx Saving) are listed in the post above. You can consider selecting 2-3 ELSS funds.

      2) Other Best performings Equity funds are listed in the post below

      https://wealth18.com/best-top-performing-equity-mutual-funds-to-invest/

      Preferably you should invest monthly via SIP option.

  13. Hi,

    I wanted to know DSPBR micro cap fund reg g and icici DFg value discovery fund both are tax saver funds are not.

  14. Hi,

    My mother is 55 and a govt employee. She has approx 3k extra per month now which she wants to invest somewhere for pension or growth. She doesn’t have any tax deductions left. Any suggestions?

    • Hi Mrinal,

      What do you mean by extra income? Do you mean, shw can invest Rs 3000 per month?

      As she is 55, you shoudl consider risk free products like FD etc.

  15. Hi,

    I heard about Baroda Pioneer ELSS’96.I would like to know whether it is wise to invest in it.Their Growth product seemed interesting.Do let me know.

    regards,
    jitin jose

    • Hi Jitin,

      Baroda Pioner ELSS was launched in March 2015. It has asset size of just Rs 45 crores. Also, the returns are not exceptional as compared to peers.

      So I think you can consider investing in established ELSS funds – see the post above for some of the best performing funds.

  16. Hello Vivek,

    Thanks for this post, I have a question.

    Can i withdraw my money before 3 year lock in period ? What would be charge if i withdraw?
    A response to this will be highly appreciated.

    Thanks,
    Devi

  17. Hi Vivek Sir,

    I am looking for investment in ELSS schemes and want to hold for 3 to 5 years from now. I am also a fresh into this investment area and have few doubts as :-

    1. What is Direct & indirect and which is better to choose,
    2. Which ELSS plans should I go for 3 to 5 years for better returns,

    thanks

    • Hi Sushil,

      Mutual fund comapnies pay a small commission to the agents (0.5-1%) for marketing their schemes. These are regular plans.
      For sophisticated investor who donot need services of an agent, they can apply directly to the MF company under DIRECT Plan of the same scheme.

      FOr small investor, the impact is not much and you can take help of agent and invest in regular plan.

      Read more – https://wealth18.com/earn-more-from-direct-plan-of-mutual-funds/

      2) You may choose 2-3 best performing ELSS funds from the post above.

      Note that equity investments have higher risk and volatility, so your time horison should be long term 5-7 years.

  18. Hi,

    I want to invest in ELSS for mainly tax saving purpose and wealth creation. I want to invest upto 50000 per year for my own house.
    I am 25 years old.

    So please suggest me which scheme to choose for it.

  19. Hi mr Vivek jain,
    I want to invest 150000 for tax saving purpose!
    My portfolio
    Axis long term equity 75000
    Reliance tax saver – 50000
    Birla sun life tax plan 96 – 25000
    Is this portfolio good? Or shall I choose only one or two funds above ?
    My horizon long term wealth 15 years!
    My other portfolio long term wealth 15 years
    DSP BR micro cap SIP -5000
    ICICI exp other services – SIP 3000
    TATA balanced fund SIP – 3000
    Is it good ? Can u suggest any alternatives ?
    Thanks in advance

      • Hi Vivek.

        Thanks for your valuable inputs. I am 30 years old. I would like to invest Rs 10k monthly in ELSS funds. The funds which I am considering are…

        1. Birla Sun life Tax relief.
        2. Reliance tax saver.
        3. Axis long term equity fund.
        4. Franklin india tax shield.
        5. BNP paribas long term equity.
        6. ICICI pru long term equity.
        7. IDFC tax advantage.

        I would like to remain invested for 5-10 years or more..My main purpose is to save tax, at the same time investment in equity instruments. In the last financial year, I have invested Rs 20k in Axis long term equity and Rs 16k in Franklin India Tax shield. both investments were made in lumpsump. Also I have invested online..without any intermediary channel..I would like to do the same now also investing without any intermediary. Is this a good option?

        So, please suggest which kind of funds are best and suits to my needs. whether the above mentioned funds are good for investment or suggest some other funds. I would like to invest Rs 1000 to Rs 2000 in each fund.

        Thanks…

        • Hi Rajesh,

          1I Investment in DIRECT options are cost effective as no intermediary is involved. Make sure that you are investing in DIRECT option. If you are investing via any online portal, it may be possible that you are investing in regular plan rather then direct plan.

          2) In terms of ELSS Funds, I suggest to select 3-4 funds, otherwise it is too much diversification and will be difficult to manage. Some of the best performing funds are already listed in post above.

    • Hi Rohit, It seems that you need to read some basics of Mutual fund

      1) ELSS is a type of Equity fund. Other type of funds are – Equity funds, Debt Fund, Gold fund etc

      2) For making investment in any fund, you can either invest a lumpsum amount or you can invest periodically (monthly, weekly, quarterly). The method to invest periodically is called SIP (Systematic Investment Plan).

  20. Hi
    I have invested 3000 in 6 Elss funds Axis/ Birla/icici/L&T/dsp black rock /franklin. and also in large Cap – kotak 50 mid cap – L&T multi cap – franklin for 25 years total 1000 each

    Pls advise above is Ok for investment and further advise what more investment I can do for coming 15 years Age is 36

      • Hi Vivek

        Invested 500 each in 6 ELSS funds for 25 years
        invested 1000 pm each in Long cao – kotak / Mid term – L& T / multi francklin for 25 years . Please advise OK

        any other or alteration to be done My age is 36

        • Hi Vivek

          Kindly Pls also advise

          Further I should consider any investment in ELSS or above . want to retire in AGE 50 my current age is 36 years

        • Hi Puneet,

          1) You are investing Rs 36000 in ELSS funds annually. Please see if you are fully utilising your 80C benefit of Rs 1.50 lakhs. If not, then you can increase yur ELSS SIP. There is no added benefit in investing in 6 schemes – better to stck to 3-4 schemes.

          2) Please list which other schemes are you investing – it is not clear from the query.

  21. Hi Vivek,

    I ‘m Planning to invest 3000 P/M for next 10 years (will increase 2000 SIP every year). Please advice me Should i invest in 1 Mutual Fund or 2 Mutual Funds (1500 each). Also Please suggest Top 2 MF that will returns higher in next 10 years.

  22. hi sir,
    i want to invest in Axis long term equity fund(ELSS).2000 per month.suggest ur opinion.
    if possible suggest about ELSS schemes.

    • Hi, Axis Long term Equity fund is one of the best performing ELSS fund. You can consider investing in it. You can see other ELSS funds in the post above.

  23. Hi Vivek,

    your efforts of responding all queries is really remarkable.

    I would like to chose best MF for me.(tax gain + other as well)
    I would like to invest around 40000 per year in MF.
    I am left of 20000 for 80C.
    so I planned to go with below.

    1. 20000 — ELSS SBI Magnum Taxgain Scheme—- is this good or I should think of something else .
    2. 12000 — SIP —- for this , which scheme wud be best.
    3. 8000 —- Normal MF —– in this which MF scheme is best with maximum returns.?

    please let me know, this break up for 40000 is I have planned it correct , if yes, pls let me know best MF scheme in each 3 items.
    If not , please advise me which are best MF scheme for this amount .
    I have opened MF account in SBI MF and I have one Folio no.. so can I invest in other MF providers (HDFC,AXIX,ICICI etc )via SBI MF portal.or can I have more than one Folio numbers for other MF providers.

    Regards

    • 1) From your SBI MF folio, you cannot invest in other companies funds. Each MF provider will create separate folio number.

      2) For ELSS, you can consider splitting the amount into 2 funds – Axis Long term equity

      3) For ELSS SIP< you can consider Franklin India Tax Shield 4) For normal Mhttps://wealth18.com/best-top-performing-equity-mutual-funds-to-invest/

  24. i am 23 year and currently earning 35,000 pm willing to invest in ELSS
    Please let me know the how much amount i should invest per month and in which scheme to get a good returns in 3-4 years.

    • Hi Avinash, The amount to invest will depend on how much amount you can save and how much shortfall is there in claiming 80c benefit of Rs 1.5 lakhs.

      Once you fix the amount, you can pick 2-3 ELSS funds from the list above.

  25. Hi Vivek,

    One quick question, which is more profitable in perspective of higher NAV or lower NAV. With higher NAV, investor will get less unit of the funds. Does that good for the investor?

    • Hi Sachin, the NAV is not indicator of whether it is good fund or not. It all depends on performance. A fund with NAV of 105 may be better than a fund with NAV of Rs 15.

  26. Hi Vivek

    I have invested 1.5 Laks in PPF this year and planning to continue further and also planning to invest 12.5K PM through SIP in ELSS for a period of 10 years. Growth-Direct.
    Can you please suggest the number of funds to be taken at what multiple of amounts each. And is it ok to invest in PPF for 1.5 Laks PA or can I reduce it and invest in ELSS.

    Thanks in Advance

    Sai Sunil

    • Hi Sai, As the deduction under 80C is upto Rs 1.50 lakhs. So by investing Rs 1.5 lakhs in PPF you are already investing upto max 80C limit.
      So investing further in ELSS, will not give you more 80C deduction.

      However, investing in Equity mutual funds are good for long term perspective. So rather then ELSS Equity funds, you can consider investing in normal Equity mutual funds. Some of the best funds are listed in the post below:
      https://wealth18.com/best-top-performing-equity-mutual-funds-to-invest/

  27. Dear Sir,

    Pls advice the difference if I invest Rs 1 Lac in Axis ELSS for Tax saving:

    1] Directly thru Axis bank
    2] thru a finance agent

    Regards/

    • Hi Punit,

      In both cases, you are going through agent. Axis Bank is distributor for Axis Mutual fund.

      Ideally, you can visit Axis Mutual fund branch and invest in DIRECT Plan of Axis ELSS. If that is not feasible, then you can either go with Axis bank or other agent – its the same.

  28. hi sir,

    I am new to these ELSS, SIP and mutual funds. I have plans to invest around 5lac. Can you please guide how shall I start investing? which funds, elss? SIP or one time?

  29. Hi Vivek,

    I’ve invested in Reliance Tax Saver (ELSS) Fund (G) in year 2008 (through Karvy) and (almost) forgot about it, until recently I received CAS email !! I have rather a naive question, what are my current options ? What should be my action ? should I continue with it or withdraw ? Please let me know how should I proceed.
    Thanks in advance for your time and suggestions on this,Thanks.

    • HI Deeps, If you donot need the money now, you can remain invested for long term. You might have noticed that over last 8 years, you would have got 200% returns.

      In fact based on this experience, you should start investing more in Mutual fund SIP for long term.

  30. In the above post, the top 10 performing list only have 5 has been listed. Could you post the top 10 list? Which will really helpful for us.

    Regards,
    Harish

    • Hi Harish,
      I have added 5 other ELSS funds. These are :

      Birla Sun Life Tax Relief 96
      Escorts Tax Plan
      DSP Blackrock Tax Saver Fund
      ICICI Prudential Long term Equtiy Plan
      SBI Magnum Tax Gain

  31. I invest around 5,000 Rs. per month in SIP, ( HDFC Top 200 Growth Plan, ICICI, Reliance DSP Blackrock and Birla Sunlife)
    since last 5 years. I have not invested in Tax savings scheme. Now My salary has got increased, I want to invest for tax saving in 80C. should I stop investing in these SIP and invest in ELSS.
    Also should I invest of 1,00,000 Rs in Lumpsum in ELSS, As I still have bandwidth of investing 1,00,000 in 80C.
    Also I want to get clarified, If i invest amount of 1,00,000 in year with lockin period of 3 years, will I get tax benefit for all 3 years ?
    Also please suggest me which fund to invest in ELSS.

    • Hi Chetan,

      1) If your investment horizon is long term, you should continue your current investments.
      2) For additional ELSS investment, you can start new SIP for this year by investing Rs 8000-9000 per month. You will get deduction u/s 80C.
      Note that you will get benefit of the amount investment in the year of investment only. For e.g if in year 2016-2017 you invest Rs 1 alkh, you can tax benefit in that year. then again if you invest Rs 1 lakh in 2017-2018, you will get tax benefit in that year.

      Some of the best ELSS funds are mentioned in the post above.

  32. Hi Sir,

    Currently, I’m investing in the following ELSS funds.

    Axis Long term fund direct growth — 2000
    Reliance tax saver direct growth — 1000
    BNP long term fund direct growth — 500
    Birla sun life 96 direct growth — 500.

    Kindly suggest can I continue with the above funds or any alternation required?

    and also please suggest any other 2 ELSS funds?

    Thanks in advance!

    • These funds are performing well. You can consider other 2 elss funds –
      Religare Invesco Tax Plan (G)
      Franklin India Tax Shield (G)

      However, there is no need to invest 6 ELSS funds. You can concentrate on 3-4 funds only. You can increase the amount in existing funds.

  33. Hi Vivek,

    I am planning for an ELSS of 2000k per month, my broker advised me for ‘HDFC retirement’ (launched feb 2016 ). But I have checked the document & find exit load 1% before 60years. I am 30years now.

    It is a good investment option for long term (for retirement)?
    How long SIP term I should select?
    Any alternative?

    Note: I have 4k/month already invested in HDFC midcap & BSL frontline.

    Regards,
    Labani

    • Hi, I think kyou should avoid such retirement plans as they are less flexible without having additional benefits.

      You can do SIP in normal mutual funds for as long as you want. Also, there is no such restriction of withdrawal till 60 years.

      You can select any best performing ELSS funds from the post above.

  34. Hello Vivek!!
    I am planning to invest in ELSS scheme for tax saving purpose. Pl do suggest me in which scheme I should invest. My monthly investment would be Rs.1500-2000. Should I go in one scheme or divide amount in two?

    Thanks!

  35. Hi Vivek,

    Nice to see u r sharing your knowledge with people who are seeking for help !!

    My Question –

    I am planning to invest in ELSS 3000 rs. monthly for next financial year in SIP mode.
    One scheme i have finalised which is – Axis Long Term Equity Fund Direct(G) of Rs. 1500 .
    Now looking for the other scheme which shouldn’t be overlapping from the above one ?

    To make it more clear, below are the schemes which are running in my mind -:

    1>Axis Long Term Equity Fund Direct(G) –FINALISED
    2>Birla Sun Life Tax Relief’96 Direct(G)
    3>Franklin India Tax Shield Direct(G)
    4>ICICI Pru Long Term Equity Direct (G)

    Out of 2,3 and 4 schemes please suggest me the better one with minimum overlapping, good returns, more than 5+ yrs of continuation in ELSS schemes and considering my eagerness for Diversification.

    Thanks !!

  36. Hi,
    I am 27 and my dad is 62. I am new to investments. I need to invest 1.5 Lakh for dad and myself(total 3 Lakh per annum).
    I approached policybazaar and they have been emphasizing on ULIP HDFC click2invest as that has minimal charges like no allocation, no agent, no charges if I discontinue etc.

    Then I searched online and found that ELSS is recommended by many. With 5-10 yrs in mind, what would you recommend for me and my dad. I have to do lumpsum this March. Should I make it SIP i.e. monthly payments starting April? Should I spread the amount in ULIP & ELSS or ELSS only?

    • Hi Vineet, Sorry for the delayed response. You might have done investments for last year.
      For this year tax saving, you can consider investment in ELSS funds (via SIP over the year), if your horizon is long term. You can select 2-3 ELSS funds from the list above.

      HDFC click2invest has minimal charges, but ULIP investments are not the great. There will be mortality charges for providing life insurance (the sum assured is very minimal). The minimum lock in period is 5 years.

  37. SBI is advertising that their SBI MAGNUM FUND has grown 34 times in 22 years, but I don’t see you listing that in your top 5 funds.

    Please tell me the best platform to manage all the funds from diff houses.

    I am looking forward to your reply on the above two points as I need to invest into ELSS to save tax.

    • Hi Rahul,

      1) That’s their clever marketing strategy. SBI MAGNUM Tax saver FUND is one of the oldest ELSS fund started in 1993. No doubt it has delivered good returns over this period.
      However, if you compare returns for last 3,5,10 years, there are other ELSS funds that have given better returns. So if you are looking for 1-2 ELSS fund, then you can go with the ones in list in the post above. Or if you intend to invest in multiple funds, you can consider this SBI Tsx saver fund as well.

      2) Do you mean just managing or investing? As there are online portals that allows you to invest in funds from multiple houses. However, they only allow you to invest in non-Direct Plans. See benefit of investing in DIRECT Plans: https://wealth18.com/earn-more-from-direct-plan-of-mutual-funds/

      MF Utilities India is new shared platform by various AMC that has started online investing in Direct Plans. They allot CAN number. I will write more details about this option in a separate post this week
      https://www.mfuindia.com/

  38. Hi vivek,

    Very informative website! Thanks a lot

    Pls update the latest MF returns, which ones are best to make a ELSS investment of Rs.50000 one time?

  39. I want to know the best SIP to hold at beginners level for tax exemption along with superb returns.
    Can that be HDFC tax saving-click2invest..?or any other better than this..?

    • Hi Swati,

      You are mentioning two different things.

      1) You can invest in ELSS Mutual funds (SIP option or lumpsum) to get tax benefit u/s 80C. You can see the funds list in the post above.
      2) HDFC Click2Invest is ULIP plan (Saving+Insurance Plan) and is different from Mutual fund. The policy term is 5-20 years. So you cannot withdraw money before 5 years. As they provide insurance, there will be deduction for Mortality charges.

      You should rather consider investing and insurance separately by taking ELSS Fund + separate term insurance plan.

  40. Hi Vivek,

    I looking to invest 60k for purpose of tax-saving this year (2015-2016). Is it ok to invest whole amount of 60K in Axis Long Term Equity Fund? Or should I look to split the amount in two or more funds?

    Also, if there are other options for me to invest to save tax.

    Please note: I will be investing total amount of 60k this month.

    Thanks a lot in advance for your help.

    • Hi Tarun, Apologies for the delayed response. You might have already taken your decision regarding investment.

      For netx year, youc an consider investing in 2 ELSS funds via monthly SIP mode.

  41. can i invest in Both of Direct plan and standard plan in ELSS of Axis long term equity fund
    1- Axis long term equity fund DIRECT GROWTH
    2-Axis long term equity fund GROWTH

    • Hi Ashish, Yes you can do that, but why would you invest in both type.
      The Direct plan will be preferable as it has less charges.

  42. Hi Vivek,

    I am lavanya and i like to invest in ELSS scheme for first time through SIP.
    AS per the given info, i like to invest in Axis long term equity fund for 3 years.

    But please reply that,
    how do i know the best time to sell my units purchased under this fund?
    What are the steps to be followed for selling units and how to do it ?
    Kindly clarify.

    Thanks
    Lavanya.

    • Hi Lavanya, As ELSS is equity based fund, you should not invest with only 3 year time frame in mind. For Equity funds, you should have long term view 5-7-10 years.

      You can sell the fund, by submitting the redemption request to the nearest MF investment point (Karvy / CAMS etc) or to MF agent, distributor.

  43. hello sir
    my current salary is 30k per month. age 27 yr.
    i want to invest 2000 per month on elss i hv already a lic of 60k anual premium and have fullfill my 80c criteria. now only focus is good return after 10 to 15 yr.in which elss should i invest?

  44. Hi Vivek
    I am investing 8 K per month in below mentioned SIP from last one year.
    What you say how is my investment, and specially what you say about HDFC Tax Saver do I need to continue or stop this SIP.

    Reliance Tax Saver (G) – SIP 3000/Month
    Axis Long Term Equity Fund (G) – SIP 2500/Month
    HDFC Tax Saver (G) – SIP 2500/Month

    Thanks
    Vineet

    • Hi Vineet, Are you claiming benefits under 80C for these ELSS funds. Whether you are exhausting the whole 1.50 lakhs 80c limit withi or without these elss funds?

    • Hi Rabbani,

      Some of the Islamic and Shariah compliant mutual funds in India are:

      1.Tata Ethical Fund
      2.Taurus Ethical Fund
      3.SBI Shariah Equity Fund

  45. Hi Vivek,

    I am investing as part of my annual investments of 1.5L. In my last year my investment looked like:
    1. EPF
    2. PPF – 80,000
    3. ELSS – ICICI Pru Long Term – 35,000
    4. Reliance Life Insurance – 10,000

    This year I am planning to increase my allocation to ELSS to 80,000 and decrease my PPF allocation to 40,000. I saw the funds that you have listed. Planning to invest in the following funds:

    1. Axis Long Term Equity Fund – INR 40,000
    2. Reliance Tax Saver – INR 20,000
    3. Franklin India Tax Shield – INR 20,000

    Please advice on the fund chosen and on the allocation.

    • Hi Saikat,

      The funds you selected are performing well. Some of the other best performing ELSS funds are listed in the post above. You can consider selecting 2-3 ELSS funds. Preferably you should invest monthly via SIP option.

  46. I am planning to invest lumpsum 20000 each in axis long term equity and reliance tax saver .. then continue SIP 2500 each in those same funds. Whether my decision is correct ? Reliance tax saver 1 year performance is not good compared to peers.

    can i go for tata india tax savings fund instead of reliance tax saver… or hold on with reliance …please clarify me sir

    Eagerly awaiting your response Sir

  47. Hi vivek Sir,

    I am a govt employee… i want to invest 40000 lumpsum in ELSS mutual funds before mid february 2016 for tax savings. I am also planning to continue SIP of 5000 each month in those funds april 2016 onwards … kindly guide me for selectingBEST ELSS mutual funds.

  48. Hi Vivek,

    I am planning to invest 50k at once, please suggest me the duration and type of scheme would works well.

    Thanks,
    Yogesh B

  49. Hi Vivek,

    I am new to mutual funds, and invested 85k for 3 years to ‘Axis Long Term Equity Fund – Growth’.

    They mentioned 2,801.971 units at 30.3081(NAV). If NAV reduce to 20 after 3 years. How much can I get amount.

    Is it 2801.971 units * 20/- ?
    If yes means full loss for me.I am worrying on that, having 0% knowledge on Mutual funds.

    Please let me know…

    • Hi Raj,

      Yes ELSS funds are Equity based mutual funds and the performance depends on share/ equities market.

      The amount you receive is based on NAV at that time. If the underlying shares are doing well, your NAV will increase and you will make profit. Otherwise, loss.

  50. Hi Vivek,

    I am 31 and working in a PSB, I am investing 7750/m in NPS, 3k/m SIP in axis long term funds. and want to start a new SIP in another Elss, of 3K for 15 years horizon and preferable the funds will be used for the education of my one year old daughter ( presently ), request you to kindly suggest a mid cap Elss that will be suitable for my goal.

    • Hi Bikas,

      Some of the best performing ELSS funds are listed in the post above. You can consider selecting 2-3 ELSS funds. Preferably you should invest monthly via SIP option.

      There is nothing called midcap ELSS, it is ELSS only…

  51. Hi Sir,

    I am planning to invest 50 k for tax saving purpose. Can you suggest ELSS is better since it is a bulk amount?(I am ok with 5 year plan)

    OR suggest me if any other form of investment is good.

    If ELSS, which one i should select .In case of other form of investment let me know the scheme name to invest.

    Thanks,
    Yogesh B

    • Hi Yogesh, Some of the best performing ELSS funds are listed in the post above. You can consider selecting 2-3 ELSS funds. Preferably you should invest monthly via SIP option.

  52. Hi Vivek, The 3 yrs return you are showing and reflected in other portals like moneycontrol are different. Your values are quite high. Please guide why there is difference. Also pls guide for best ELSS funds currently.

      • Hi Vivek,
        How about Mid-cap funds like 1) Birla sun life MNC fund 2) SBI Magnum midcap fund 3) Franklin (I) Smaller cos.
        I hav already invested last year in Axis Long term equity, Reliance tax saver & ICICI prudential right fund.
        Pls guide.

  53. Hi Vivek,

    I would like to invest in ELSS. I am 43 years old now and would like to build my retirement fund.
    At present i can start with 3K per month. Kindly let me know which are the ELSS good for me . Please advise schemes with low risk.

    Thank you.

    • Hi Ankitha, Are you already claiming full deduction of 1.5 lakhs u/s 80C. If nt, then you should consider ELSS funds to get tax benefit.

      If oyu are already claiming full amount, then you can consider other Equity funds as well.

      Some of the best performing ELSS funds are provided in the post above. You can split the amount in 2-3 funds. For next year, it is better to invest monthly via SIP.

  54. Hi Vivek,
    After reading your suggestion and comments, i can not hold myself to put some queries for me.
    I am married with one child. My current salary is 45k. I do not have any life insurance nor Health insurance. Our company offered us PF facility, in this 1800pm deducted from salary.

    My current investment are as follow:
    1. DSPBR- Top 100 Equity-Reg-G: 2000 pm (SIP started in 2011)
    2. HDFC- Tax Saver-DP-G: 20000 lumpsum (current valuation 32k. 3 yr will be complete in Feb. 2016)
    3. HDFC- Top200 Fund-G: 1500 SIP stopped. Invested 12k( current valuation 19k)
    4. HDFC- Top 200 Fund-DP-G: 1500pm SIP. investment 3,500 yet (valuation 3,479)
    5. HDFC- Mid cap Opportunities Fund- DG: Recently switch 48k from Top 200 plan (current valuation 47,921)
    6. Frankline India Opportunities-DP:20k lumpsum (Recently switched Tax shield plan’s money after lock in period over)
    7. Reliance- Regular Saving- Equity- Direct-G- 1500 pm (SIP started in 2013)

    Can you please suggest me, Is my above portfolio is perfect or i should go for other?

    Additionally, I want to invest 1,50,000 u/s 80c for this FY. I would like to invest whole amount in ELSS. Is it good idea to to invest in ELSS with lumpsum amount in 3 different tax saver paln?

    Also please suggest best performing ELSS plan for me.

    Thanks,
    Mamta

    • Hi Mamta,

      1) ELSS Funds are better if you want to claim deduction u/s 80C. Some of the best performing ELSS mutual funds are provided in the post above.

      2) Once your 80C limit is over, then you can look into normal Equity funds. Some of the best performing other Equity funds are provided in the post below:

      https://wealth18.com/best-top-performing-equity-mutual-funds-to-invest/

      Funds selected by you are giving average return as compared to peers. Please see the list of best performign funds in the link above.

  55. Hi Vivek,

    I need to invest around 1.5-2 lakhs in mutual funds before 31st March 2015 to circumvent income tax and I was wondering what would be the best option for me. I know that you recommend SIP but as I’ve said I don’t have much of an option…
    Look forward to hearing from you.

  56. hi,
    i have invested in icici pru long term equity (tax gain) thru sip. Is it gud fund to invest in it or shall i come ouy of it and invest in axis long term equity as stated?? need your suggestion.
    thank you

  57. Hello Sir,
    I would like to invest Rs.50000 in Tax Saving Mutual Fund for deduction u/s 80C. Kindly let me know which are good. My investment agent has sent forms of Franklin India Tax Shield and HDFC Taxsaver. Please let me know as I am investing for the first time.

    • Hi, Some of the best performing ELSS funds are provided in the post above. You can split the amount in 2-3 funds. For next year, it is better to invest monthly via SIP.

  58. Hi Sir,

    Since July 2015, the investing in the following ELSS funds for tax saving and good returns in the future.

    Axis Long term equality fund (G) direct – 2000 PM
    Reliance Tax saver Direct – 1000 PM
    BNP long term equality fund — 500 PM

    Is that good to continued with this funds? Else any of these need to stop investing?

    Also I would like to invest in one select one more ELSS fund, please suggest me.

    Which one is good to start now with Religare Invesco Tax Plan – Direct Plan (G) or Birla Sun Life Tax Relief 96 – Direct Plan (G) or any other good fund ?

    Please give your valuable suggestions….

    • Hi Harish, The ELSS funds where you are investing are performing well and you can continue your investments.

      For new investment, you can select any funds from the best performing funds list provided in the post above.

  59. Hello Vivek,

    I am investing in “Axis long term equity fund” and “Reliance tax saver” one thousand each through SIP for last 4 months. I want to invest two thousand more on monthly basis. Can you please suggest me some fund to invest.

    • Hi Vaibhav, MIP funds aim to provide regular return via dividends but thats not gauranteed. They invest primarily in Fixed income securties. However , there are some MIP funds that allocate some portion(25%) to Equities as well.

  60. Hi Vivek,
    i want to invest 1000/month.

    which ELSS SIP plan should i go for?
    one more thing what is the difference between AXIS long term equity Fund(DIRECT GROWTH) and AXIS long term equity Fund(DIRECT DIVIDEND). which one can i consider if i go for axis ELSS fund.

    • Hi Ankit,

      It is better to invest in GROWTH funds as the earnings are accumulated in NAV. However, in dividend funds , the dividend is declared and paid almost every year. NAV will be less in case of dividend funds as some of the earnings is paid back.

  61. I’m inverting on the following ELSS funds from July 2015 onwards:

    Axis Long term equity fund – 2000
    Reliance tax saver – 1000
    BNP long term fund – 500

    Can I continued with these funds or do I need to stop any of these and invest in some other funds?

  62. Hi vivek ,

    I am new to invest in mutual funds. i am planning to invest per month RS 5000 for a longer period of time(10-15 yrs).will increase my investment in future. Could you please suggest me which ELSS is good to invest .

    regards,
    srinivas T.

  63. I have started to invest in a ELSS fund through SIP for 10 years. Is it possible to increase SIP period after start to a particular fund like ELSS ?

  64. Hello sir
    I am investing in hdfc tax saver -g via sip of 8000 per month . Shoul i exit or continue with this fund as it is not performing well

  65. Hi Vivek Sir,

    Please suggest for below………

    I have existing SIP of 5000 in HDFC Tax Saver (G) Plan. Four SIPS’S already done.

    Thinking of cancelling this SIP and investing in to other top performing mutual funds.

    My monthly income is 30,000 and i can invest around 8 thousand in a month.

    Also please suggest ELSS mutual funds wherein i can invest this amount by splitting in to 2-3 SIPS.

    Regards.

    Sumit.

  66. Hi Vivek Sir,

    Have one question regarding DIRECT Plans (For Cost saving and Higher returns).

    Are these plans covered under 80C for tax saving.

    Regards.

    Sumit.

  67. Hi Vivek,

    I would like to invest 60K for 1 year via SIP of 5K each in Axis Long Equity Fund(G). Do I need to submit KYC for this kind of MF plan?

  68. Hi Vivek,

    I am investing in HDFC Tax saver direct plan [G] for the past 2.5 years. I see that the returns is not that good and also many financial websites like moneycontrol is advicing to switch out from this fund.

    Do I need to switch to a better performing fund or should I stick on? Please advice a good ELSS fund incase I need to switch

    Regards,
    Robin

    • Hi Robin,

      There is lockin period of 3 years for ELSS funds. So if you are investing since last 2.5 years, you cannot switch now.

      You are right, it is not performing that well as compared to others. e.g. over last 2 years, Axis Long term equity has given 41.5% return, while HDFC tax saver has given 30%.

      You can stop your SIP in HDFC TAX saver and can start Axis Long term equity, Birla SL Tax Relief 96 (G)

  69. I have two question on investing in MF,

    1. I am new to MF, going to direct is good option or not
    2. I have selected following MF, are they good to invest??
    i. Axis Long Term Equity Fund
    ii. Franklin India Taxshield
    iii.ICICI pro tax plan
    iv. RELIANCE TAX SAVER

    Pls explain, what is diff b/w direct and agent/broker investment in MF..??

    • It is good sector specific fund. Pharma is doing well since last few years.
      So if you are willing to take sector risk, you can go with this fund.

    • Reliance Tax Saver is also good ELSS fund and performing OK. You should not be switching funds regularly. If the fund is not performing for 1-2 years, then switch to better one.

  70. Hi ,

    I want to invest in ELSS for tax saving as well as wealth creation in the long term.
    I can invest upto 15000 per month in various instruments.
    Can you suggest a good spread of investments for me.
    Would u suggest SIP or annual lump sum investments ?
    I am 27 years old and not looking for immediate gains. I want to stay invested for atleast 5 years or more.
    PS : I have not bought a life insurance plan as yet. I have no tax saving investments currently apart from the regular PF account maintained by my employer.
    Looking forward to hear from you.

    Thanks,
    Srijeet

  71. Hi Vivek,

    1.Wanted to know SIP MF plans being a newbie with horizin of 15years and 10K investment per/month.
    2.HAve already exhausted my 80C limit so wanted to know which is better.ELSS or Direct Plan – Growth MF’s or it hardly matters.
    3.Also, wanted to know SIP where i can increase my SIP for couple of months with the existing monthly investment/
    e.g: if i invest 2K monthly and want to increase it to 4K for some months.

    Shorlisted funds:
    Axis Long Term Equity Fund – Direct Plan – Growth
    ICICI Prudential Very Aggressive Plan – Direct Plan – Growth
    IDBI Equity Advantage Fund – Direct Plan – Growth
    SBI Small & Midcap Fund – Direct Plan – Growth
    UTI MNC Fund – Direct Plan – Growth
    UTI Mid Cap Fund – Direct Plan – Growth

    Regards,
    MAkarand

  72. Hi Vivek,

    I have been invested in 2 ELSS (Axis long term equity and Reliance tax saver) since the last one year. I wanted to know how exactly do i claim tax benefit for that?

    I know that taxable income can be deducted by upto 1.5 lac under 80C, but how exactly do i claim that? Is there some specific place in the ITR form that i have to enter that information or any specific document i have to submit as proof of my ELSS investments?

    thanks for your reply,
    First time IT return filer.

    • Hi Jacod, Int he income tax return, you can just enter the amount under “Chapter VI 80 C Deductions”. You donot need to submit proof at the time of filing return. Just keep the proof as it will be required if the return comes under scruitny.

  73. Hi Vivek

    Are investments into the SBI Equities Opportunity Fund – Series II covered under ELSS and/or deduction u/s 80C?

    • SBI Magnum Tax Saving fund is not performing well as compared to peer ELSS funds. You can see the returns of some of the best performing ELSS funds in the post above.

  74. I am 66 yrs. age working in a private Co. as General Manager. Have invested Rs. 1 lac in PPF. Kindly suggest for investing balance Rs. 50 K. Want Maxm. returns. Can afford risks.

    Thanks for a prompt suggestion.

    Kamal

    • Hi Kamal,

      You can invest in ELSS funds and claim deduction u/s 80C. Some of the best performign ELSS funds are provided in the post above. Ideally you should make investment monthly using SIP option.

  75. Hi Vivek,

    I have been watching this website for 2 years.it is really nice with this I got good awareness on ELSS mutual funds.
    Its the time for me to invest into ELSS.
    I would like to invest into ELSS 10000 every month using sip mode.
    which is the better to go with 2 mutual funds or 3 (or 4 if required) mutual funds(splitting 10000 into 2 or 3 or 4 partitions)?
    I shortlisted below ELSS to invest.
    Please let me know how to divide 10000 among these mutual funds.
    Axis equity fund
    Reliance Tax Saver
    Franklin India
    BNP paribas

    • Hi Anil, The funds selected by you are performign well and you can consider investing.

      Some of the best performign ELSS funds are provided in the post above. You can select 3-4 funds based on your investment amount.Ideally you should make investment monthly using SIP option.

  76. Hi Vivek,

    I am 25 years old software professional and want to start savings in ELSS through SIP (2000 monthly )a.s.a.p.

    Can you suggest for which ELSS mutual fund should i go ? My goal is wealth creation over long term.

    Thanks & Regards,
    Tanb Gupta

    • Hi Tanb,

      Some of the best performing ELSS funds are provided in the post above. Feel free to select 2-3 funds for your investment for long term.

  77. hi vivek,

    I want to start sip 3000 pm in Motilal Oswal MOSt Focused Long Term Fund- direct-growth, is this good fund to invest for long term?

    • Hi Nandish, Motilal Oswal MOST Focused Long term fund is an ELSS fund and have provided good returns in last 1 year. As it is a new fund, there is not a long history.

      Some of the other best performing ELSS funds are provided in the post above.

  78. Hello,

    I am a single female in late twenties. I wish to know the best ELSS schemes for investing around 20K – 25K monthly. I am looking at it from a purely growth and investment point of view as I already have PPF for tax saving purpose.

    Please guide me accordingly…thanks ……

    • Hi Sonia,

      1) If you are looking for investments for tax deduction under Section 80C, then you should look at ELSS funds. Some of the best performing ELSS funds are provided in the post above.

      2) If you have exhausted your 80C limit, then you can go for other Equity Mutual funds.
      https://wealth18.com/best-top-performing-equity-mutual-funds-to-invest/

      You can select 3-4 funds based on your investment amount.Ideally you should make investment monthly using SIP option.When investing in Equities, you should have long term horizon say 5-7 years as in the short term market may be volatile.

  79. Hi Vivek,
    I am a Central Gov. employee earning Rs 60000 per month and my age is 26 years.
    I want to invest Rs 5000 per month partly for tax benefit purpose and partly for investment purpose.
    This is my first step towards financial planning. Please advice me.

    • Hi Amis,

      1) If you are looking for investments for tax deduction under Section 80C, then you should look at ELSS funds. Some of the best performing ELSS funds are provided in the post above.

      2) If you have exhausted your 80C limit, then you can go for other Equity Mutual funds.
      https://wealth18.com/best-top-performing-equity-mutual-funds-to-invest/

      You can select 3-4 funds based on your investment amount.Ideally you should make investment monthly using SIP option.When investing in Equities, you should have long term horizon say 5-7 years as in the short term market may be volatile.

  80. Hi Vivek,

    can you provide more information about ICICI Pru RIGHT Fund (G) ELSS scheme. It seems to be doing pretty well on Long term basis (2nd Highest Returns on 5 Year annualized returns), however it has very less amount of AUM. Any particular reasoning for that?

    Is it a good scheme to invest? awating comments

    • Hi Prajakt,

      ICICI Prudential R.I.G.H.T. (Rewards of Investing and Generation of Healthy Tax Savings) Fund is a ten year close-ended equity linked savings scheme. The AUM is less because it is close ended and no fresh investments can be done.

  81. Hi Sir
    I have a lump sum amt of 3Lacs. I was thinking of investing in-
    50K- Axis ELSS (for 3yrs)
    50K- UTI MNC Fund (3 yrs)
    50K- ICICI Exports (3 yrs)

    Can you suggest some other funds/ inv options to invest in the remaining amount & tell how are these selected funds.
    I am looking for high returns

    • Hi Yagya,

      Are you looking for investments for tax deduction under Section 80C? If yes, then you should look at ELSS funds. Some of the best performign ELSS funds are provided in the post above. You can select 3-4 funds based on your investment amount.Ideally you should make investment monthly using SIP option.

      If not, then you can go for other Equity Mutual funds.
      https://wealth18.com/best-top-performing-equity-mutual-funds-to-invest/

      When investing in Equities, you should have long term horizon say 5-7 years as in the short term market may be volatile.

  82. Hi Vivek,

    I just started investing in Franklin Prima plus (3000) , Franklin high growth companies (3000) and Reliance small cap fund (2000). Are these funds are good to invest and any other funds to be added to get a Good portfolio.

    Thanks
    Mani

    • Hi mani,
      These funds are performing well and can be considered for long term investment.

      Instead of Franklin Prima plus , you can consider UTI MNC fund.

  83. I have invested in AXIS, BNP, Reliance for tax saving for the last three years. Will you please suggest any other ELSS for tax saving for the Assessment year 2016-17.

  84. Hi Sir

    Where i can open mutual fund elss schemes for Reliance and templeton franklin groups in direct plan through online?
    For axis lt elss . in axismf.com
    what about rest of two …?

    THank you

  85. Hi Vivek,
    Thanks for being so kind to people like me, for whom it’s a very difficult task to take financial investment decisions.

    Till now my portfolio looks like this:
    LIC: 25k (10 year plan) I am in the 5th year
    EPF
    PPF: Invest the rest for maximum eligibility under 80C

    I have booked a flat, for which home loan will be starting next year.
    For now, if I don’t invest under PPF, I have around a lakh which I can invest in ELSS.

    Request your advice on the best options available to invest 100000. I can do this lump sum as well.

    Hoping for a detailed advice for me to go about with my money the best way possible.

    Kind Regards,
    Kanta

    • Hi Kanta,

      You can start with investing 50000 in ELSS and rest in PPF. In furue when you are more comfortable with ELSS investments, you can increase allocation.

      Some the ELSS fund which you can consider
      Axis Long term equity (G)
      Reliance Tax saver (G)
      BNP Paribas Long Term Equity (G)

      • Thanks a lot for your reply.
        If I start with 60k in ELSS.
        Should this be 20k in each ( Axis, Reliance, BNP). Or allocated in a different way?
        Would you recommend lump sum or do you advice monthly!
        Kind Regards,
        Kanta S

        • Hi Kanta,
          Yes you can allocate that way. It is better to invest via monthly SIP option so that the NAV is averaged.

          In case you have money to invest now, you can invest lumpsum as well. Or may be invest in 3 funds over next 3 months.

          • Thanks a lot once again.

            I was reading your other blog where you have mentioned being a 1st timer going through FundsIndia/agent is better than doing it direct.
            Do you still advice that?

          • Hi Kanta,

            If you are comfortable then you can go DIRECT. You just need to deposit the MF form, KYC form as well as initial cheque in MF office or point of acceptance.

            If you donot want that hassle, you can take any agent’s help. Going with online portal will not help much as you still need to fill the docs yourself without any guidance.

          • Thanks Vivek.

            If i go Direct, will I have to fill MF form, KYC form and SIP form for each fund?

            From the below, if i am investing 60,000 how many funds should i pick and which ones do you suggest are the best to go for?
            1.Axis LT Equity Fund(G)
            2.BNP Paribas Long Term Equity Fund(G) or BNP Paribas Mid Cap Fund(G)
            3.UTI Equity Fund(G)
            4.Mirae Asset India Opportunities Fund-Reg(G) or Mirae Asset Emerging BlueChip-Reg(G)
            5.SBI Magnum MidCap Fund-Reg(G)

          • Hi Kanta,

            You need to fill KYC form once. For every investment you need to fill MF Form and SIP form.

            1) If you are looking for investments for tax deduction under Section 80C, then you should look at ELSS funds. Some of the best performign ELSS funds are provided in the post above.

            2) If you have exhausted your 80C limit, then you can go for other Equity Mutual funds.
            https://wealth18.com/best-top-performing-equity-mutual-funds-to-invest/

            You can select 3-4 funds based on your investment amount.Ideally you should make investment monthly using SIP option.When investing in Equities, you should have long term horizon say 5-7 years as in the short term market may be volatile.

          • Hi Vivek,

            I managed to start with my SIP with Axis LT Equity Fund (G) by going Direct :), thanks for your advice, it was actually not at all difficult (Rs 2500 pm)

            I am still looking for advice on the other funds to invest in from the below options:
            1.BNP Paribas Long Term Equity Fund(G) or BNP Paribas Mid Cap Fund(G)
            2.UTI Equity Fund(G)
            3.Mirae Asset India Opportunities Fund-Reg(G) or Mirae Asset Emerging BlueChip-Reg(G)
            4.SBI Magnum MidCap Fund-Reg(G)

            Kind Regards,
            Kanta S

          • Hi Vivek,

            Thanks for your guidance. I have started a SIP (Direct) for below ELSS funds.
            – Reliance Tax Saver 2500
            – Axis Long Term Equity 2500
            – Birla Sun Life 96 2500

            Is there any theory on which date should we pick for SIP.

            I am now looking to invest in non-ELSS funds
            Are you please able to advice Top 3 funds for wealth generation please
            I want to invest as SIP 2000 each in 3 funds.

            Your kind advice will be awaited.

            Kind Regards,
            Kanta S

  86. Hi vivek,

    Yes iam utilizing full 1.50/- u/s 80c with above investments + HDFC YOUNGSTAR 25000/- For year.

  87. Hi Vivek,

    Pls advise

    My current investments (SIP)

    1. AXIS LONG TERM EQUITY FUND – 5000/- (from Feb-2014)

    2. Birla sunlife Tax plan – 3000/- (From Oct-2014)

    3.Franklin India High Growth Companies Fund – 2000/-(From Oct-2014)

    4. IDBI Equity Advantage Fund – 2000/- (From Jun-2015)

    5.RELIANCE RETIREMENT FUND – WEALTH CREATION SCHEME-1500/- (From jun-2015)

    Pls advise any modifications and best investiments

    • Hi,

      1) Please let me know whether you will be utilizing full 1.50 lakhs u/s 80C .
      2) I would not prefer RELIANCE RETIREMENT FUND as thee is lock in of 5 years and options are limited.

  88. Hi Vivek,

    You mentioned few funds with ‘G’ at last of fund name like Axis long term fund(G).
    What does G mean?Are there any other words like G?

    If i want to invest online through FUNDSINDIA,Will they charge for maintain account,to redeem the money after 3 years?

    Regards
    Surendra G

    • “G” means Growth Option . Other is Dividend option. You should go with Growth option

      I don’t think they charge any fees as they get commission from MF house.

  89. Which is the best tax saving scheme. ELSS or ULIP. If so, which co. Whether UTI ULIp is better for 10 years. Rs. 6,000/ invested yielded Rs. 1,15, 000 in 10 years in UTI twice. I want to invest Rs. 50,000/ . whether to be invested in one co. or in different. Please advise.

    • I normally donot like ULIP as it mix both insurance and investment. On one hand it doesnot give adequate insurance and on the other hand not enough choices for investment.

      I would prefer to go with ELSS as Investment. In addition, I will take term Life Insurance.

      If you want to invest in ELSS, you can consider
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      BNP Paribas Long Term Equity (G)

      Also, could you please provide more details about the UTI ULIP you are mentioning. Which ULIP, how much premium monthly you paid , duration and amount received on maturity.

  90. Hi Vivek,
    Greetings!!

    My current employment status as a consultant does not entitle me to hold a PF account; therefore I would need to make investments for tax saving purpose. However, I pay an annual premium of Rs 52,000 towards my LIC Policy.

    I have an income of Rs 60,00 per month and am in a position to make an investment of up to Rs 20,000 each month. Kindly suggest how do I plan such an investment (keeping in mind the tax saving component) and also the returns that I can expect in a certain period.

    Thanks & Regards,
    Vikram

  91. I want to invest 15000/ month in mutual funds. Can you suggest me a good mix of mutual funds to invest. I wanna invest atleast 8000-1000 in ELSS for tax saving. please suggest me a good mix 4-5 funds where i should invest.

    • ELSS : You can consider following ELSS funds:
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      BNP Paribas Long Term Equity (G)

      You can consider investing in following funds for long term:

      Large cap – Franklin India Opportunities (G), UTI Equity Fund (G)
      Midcap / small cap – SBI Small & Midcap Fund (G) , UTI Mid Cap (G)
      Diversified – UTI MNC Fund (G), ICICI Prudential Exports and Other Services Fund (G)

      Invest in GROWTH Option of all above funds.

  92. Hi Vivek

    Must say you are doing a commendable job.!! 🙂
    I have read many of the above comments where i already found few answers.

    Per what i read, the joint holder in ELSS funds cannot avail any tax benifits, right?

    Now i need advice as below
    1. I want to invest in Axix Tax Saver (Long Term Equity) Fund (G), amount being 1 lakh, can i invest this money all in one go only unike the SIP method where in the lumpsum amount is also received accordingly (this also i read in your above comments) so as to get the lumpsum amount after the 3 year lock in period.

    2. You are advising to diversify the funds , so should i also split 50k each in 2 separate funds, one being Axis and the other Relaince tax saver fund?

    3. I have no issues in extending the tenure to more than 3 years, just in case we need to extend it further, whats the process to stay invested.

    Thank you.!!

    • Hi Neha,

      Thanks for finding it useful.

      1) Please explain yoru 1st query.
      2) It will be good to diversify into 2 funds – the funds selected by you are performing well and you can consider these.
      3) Note that the ELSS funds have “lock-in” of 3 years and not “tenure” of 3 years. which means there is no defined maturity period (like all mutual funds), but you cannot sell it before 3 years. You can continue to remain invested after 3 years (you donot need to do any thing to remain invested).

  93. Hi Vivek,

    I m looking for ELSS funds to invest Rs 10000, pm wanted to know how i can diversify this amount in different scheme to have a good returns. Period i may keep investing for next 3 years and keep it lying as investment for atleast next 6 years. Can you please suggest me what amount i must invest in which scheme.

    Thanks
    Mohammed

    • Hi Mohammed,

      You can consider following ELSS funds:
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      BNP Paribas Long Term Equity (G)

  94. Dear Vivek

    Could you please reply my query asked on 1st July at the earliest possible.

    Thanks..
    Sukhminder Singh

  95. Hi Vivek,

    I want invest the bulk amount (5-8) lacks for childs future education.

    till now it was in FD nut now Intrest % is dropped so much.

    What is the best child plans /any other investments with low Risk and high returns?

    Thanks,
    Vijaya

    • Hi Vijaya,

      it is good that you want to secure your child future. However, the risk & returns are on same proportion. if you want low risk, the returns will be low a well.

      In the long run, Equities funds provide better returns if you remain consistent. But it involves risk as well. However, based on historic data, you could easily get 12-15 % Annual return if you are investing for long term 10-15 years.

      Please let me know if you will be willing to invest in Equity funds.
      Normally the child plans which provide safe returns, actually give returns lower than FD rates.

  96. Dear Vivek

    I posted a query seeking your view on my existing and new investments. But my post no-more is visible. Could you please confirm if it’s deleted by mistake or what happened?

    Thanks and Regards
    Sukhminder Singh

  97. Dear Vivek

    I am 32 year old; don’t have much financial burden and have following investments/insurances running at the moment.

    1. Aegon Religare Term insurance – (10000 Rs. yearly premium) – 1 Crore
    2. Medical Insurance (26000 Rs. yearly premium; including parents) – 5 lac.
    3. Other Life Insurance – 15000 Rs. yearly
    4. Mutual Funds
    Following funds’ lockin period is completed:
    a) DSP Blackrock Tax Saver Fund (G) – Current Fund Value: Rs. 39911
    b) L&T Tax Advantage Fund (G) – Current Fund Value: Rs. 37071
    c) Birla SL Tax Relief ’96 Fund-ELSS (G) – Current Fund Value: Rs. 42274
    d) Reliance Rax Saver (ELSS) Fund (G) – Current Fund Value: Rs. 36687

    Following funds’ lockin period is NOT completed yet:

    a) UTI Equity Tax Saving Plan (G)- SIP:1000/month
    b) Axis Long Term Equity Fund (G)- Lumpsum: 34500 Rs.
    c) Reliance Retirement Fund-Wealth Creation Scheme-(G)- Lumpsum: 20000 Rs.
    d) Reliance Tax Saver (ELSS) Fund – Lumpsum: 16000 Rs.
    e) IDBI Equity Advantage Fund-Dividend – Lumpsum: 95000 Rs.
    f) UTI Equity Tax Saving Plan – (G)- Lumpsum: 49000 Rs.

    I have following queries:

    1. I need to do tax savings for the current financial year. So I want to invest 10000 Rs. in lumpsum and 5000 Rs. in monthly SIP for long term (4-5 years). Please suggest a fund for lumpsum and 3-4 funds for SIP.

    2. Would it be a good idea to shift the ELSS funds (whose lockin period is completd) to Mid Cap/Small Cap OR some other category for the sake of better growth. If so, please suggest which of the completed funds should be shifted? And kindly suggest 3-4 funds to invest in non-ELSS category where the growth is higher.(I understand Mid Cap/Small Cap are not tax saving funds; Also my risk appetite is moderate; may need money after 2 years)

    Thanks & Regards
    Sukhminder Singh

    • Also, please share your views about my funds whose locking period is NOT completed yet. I mean how they look. Are they good ones OR need any changes?

    • Hi Sukhminder,

      It seems that most of your investment are under ELSS for tax saving purposes. Also you tend to invest in lumpsum, it is better to invest via SIP on monthly basis.

      1) Regarding ELSS, you can consider investing in following
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      BNP Paribas Long Term Equity (G)

      2) You can transfer some of the ELSS funds to Mid/small cap fund as they tend to give better returns in the long term (but they have high risk as well).
      Some of the good performing mid/small cap funds are given in list below
      https://wealth18.com/best-mutual-funds-to-invest-in-2014-top-performing-mutual-funds-in-india/

      You are right midcap funds are not ELSS and there not eligible for tax saving. However if your time horizon is just 2 years, I would suggest keep money in safe instruments (and not equity funds) – Bank FD, Debt / Liquid funds.

      3.Regaridng your existing funds, I personally donot like – Reliance Retirement Fund-Wealth Creation Scheme. Actually all “Retirement funds” as there is unnecessary lockin upto 60 years of age and no extra benefit.

      • Hi Vivek

        As mentioned in my earlier post, I have ALREADY invested in ‘Reliance Tax Saver (ELSS) (G)’, ‘Axis Long Term Equity Fund (G)’.
        1. So would it be a good idea to invest in these two more?
        2. Could you please suggest latest top 3 funds to invest in small and mid cap?

        Thanks
        Sukhminder Singh

        • Hi Sukhminder,
          1) You can top-up in these 2 funds. Also, you may add – BNP Paribas Long Term Equity (G)
          2) In small/mid cap segment, you can consider – SBI Small & Midcap Fund (G) , UTI Mid Cap (G), DSP-BR Micro Cap Fund – RP (G), Can Robeco Emerg-Equities (G)

  98. Hi Vivek,

    I’m investing RS 2000 PM through SIP in Axis long term equity fund growth (direct) Since May 2015. Now I’m planning to invest RS 1000 PM in ELSS. Please suggest few ELSS funds for good returns in the future.

    Thanks for the valuable suggestions…

    Regards,
    Harish

  99. I am investing in 4 mutual funds through SIPs of Rs 1000 each per month. I have invested for more than 7 mnonts.They are as:
    1. HDFC Mid Cap Opportunities Fund -G
    2. HDFC Equity Growth
    3. HDFC Top 200
    4. Birla Sunlife Pure Value fund.

    Shall I continue with them or any other suggestions. Also suggest best Tax saving MF.

    • Hi Sumant, these funds are performing Ok but not the best. Give it another 6 months and then review as to whether switch or not.

  100. Hi Vivek,

    Please clarify one thing regarding ELSS. I have a total SIP amount of 6000/pm in 6 different plans. Now after 15 years, I have crossed the 3 years lock in period for all SIP done till 12th year. That way I have invested 8,64,000 (6000 x 12M x 12Y) till 12th year.

    Now my query is whether I can select all these SIP in bulk & withdraw the money if I need a huge amount?

    Regards,

    Pranjal

  101. Dear Vivek,

    I’m planning to invest 1lakhs in Tax Saving Mutual funds from the options which you have provided.

    I’m also planning to invest 2000/month in SIP only as an investment and for growth and not for TAX savings.

    Can you please let me know which is the best SIP for growth for a period of 3-5 years.

  102. Hi Vivek,

    I’m in invested in following ELSS mutual funds since March, 2015

    Axis Long Term Equity Fund (G) 5000 Rs
    Reliance Tax Saver ( G) 5000 Rs
    Franklin India Tax Shield (G) 5000 Rs
    HDFC Long term advantage fund (G) 5000 Rs

    Though I started pretty late, but I’ll stay committed to these funds for 3-5 years or even longer SIP.
    I also have other investments like FD (sum up to 30 lakhs on family member’s names), some ULIPS amount upto 60k/ year. ELSS will take care of my 80C limit. However, I believe I can contribute around another 30K/ month for investment.

    Please advise, where to invest 30k month? What are my best options for where I can maximize the returns? I’m ready to invest for long duration (8-10 years).
    I was initially thinking about opening a PPF account for 1.5 lakh/year + 1.5 lakh/ year (Sukanya Samridhi account for my daughter). Do you think these will be wise investments?

    Or if you can direct me to something with better returns over a period of 12-15 years?

    Thanks
    Sachin

    • Hi Sachin,

      1) You can consider opening PPF account as it gives tax free income and risk free returns. I would not advise Sukanya Samridhi account as the withdrawals are restricted.

      2) Over the long period, equity funds give better returns. You can consider 2-3 funds from Large Cap, Midcap & Small Cap, Diversified and 1 Sector fund from the list below :

      Franklin India Oppor. (G)
      UTI Equity Fund (G)
      SBI Blue Chip Fund (G)

      SBI Small & Midcap Fund (G)
      Birla Sun Life MNC Fund (G)
      Can Robeco Emerg-Equities (G)

      UTI MNC Fund (G)
      Franklin High Growth Cos (G)

      Reliance Pharma Fund (G)
      ICICI Pru Bkg & Fin Serv-RP(G)

      https://wealth18.com/best-mutual-funds-to-invest-in-2014-top-performing-mutual-funds-in-india/

      • Hi Vivek,

        Just a small doubt, Sachin has already an investment related to 80C.

        but how can PPF account give a taxfree incomce ?, If i invest in ELSS above 1.5l/py will it be taxable ?

        or is PPF better than ELSS ?

        • Hi Sandeep,

          1) Interest on PPF Amount is tax free. Also any capital gain on ELSS fund is tax free (even above 1.5 lakhs). – So from tax perspective , both are OK.
          2) Both PPF & ELSS are different instruments – PPF provide guaranteed interest, while ELSS is based on market conditions.(Equities).
          So rather than putting everything in one basket, it is better to split the investment into ELSS & PPF both. If one is Ok to take risk, then full amount can be invested in ELSS.

  103. Hi Vivek,

    i am planning to invest Rs. 5000 p.m, however since I am a beginner with basic knowledge on MF’s, I am thinking of investing in ELSS through Scripbox, Fundsindia, Fundsmart, etc. Please advise if it would be a good option or would I need to invest through irrespective sectors. Also, I have learnt from your posts that 3-5yrs is not enough to reap good returns, hence wanted to know if we can extend the lock-in period from 5ys to 7-10yrs

    • Hi Sophia,

      You should invest in ELSS if you have not exhausted the 80C limit. If you have already exhausted 80C limit, then you can go for normal Equity funds.

      ELSS fund have lockin of 3 years only, but you can remain invested as long as you want.

      ELSS : You can consider following ELSS funds:
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      BNP Paribas Long Term Equity (G)

      Other funds – You can consider investing in following funds for long term:

      Large cap – Franklin India Opportunities (G), UTI Equity Fund (G)
      Midcap / small cap – SBI Small & Midcap Fund (G) , UTI Mid Cap (G)
      Diversified – UTI MNC Fund (G), ICICI Prudential Exports and Other Services Fund (G)

      Invest in GROWTH Option of all above funds.

      The names you mentioned are Online distributors of mutual fund. You can invest via them or you can take help of Mutual fund agent or your bank as well.

  104. sir,
    i am a retd lt col. I am 67 years old I want to invest in ELSS through SIP for tax saving purpose. please guide.

    • Please note that ELSS is Equity fund and therefore risky as returns are dependent on market conditions.

      ELSS : You can consider following ELSS funds:
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      BNP Paribas Long Term Equity (G)

  105. Hi Vivek
    I want to invest 20000 per month for 3-5 yeast plz suggest the best plan so that I can start my investment

      • Hi
        Yeah I have exhausted my 80 cc limit so tax saving is not my priority can you please suggest 2-3 best mutual funds to invest…I have 2lc in hand which I want to invest right now…is it better to invest lumsum or through SIP

        • Hi Barkat,
          it is better to invest via SIP in installments.

          You can consider investing in following funds for long term:

          Large cap – Franklin India Opportunities (G), UTI Equity Fund (G)
          Midcap / small cap – SBI Small & Midcap Fund (G) , UTI Mid Cap (G)
          Diversified – UTI MNC Fund (G), ICICI Prudential Exports and Other Services Fund (G)

          Invest in GROWTH Option of all above funds.

  106. Hi sir,

    I have one query regarding SIP in ELSS fund. If I invest 4000/Rs every month in any of best ELSS fund given by you, as you said the locking period will be 3 years. When I invest every month, the invested each SIP will be lock for 3 years. In case of any lumpsum money requrement after 3-4 years, I am not able to get the money. Each invested SIP has to withdraw as monthly STP or only but not lumpsum.
    Can you give your opinion.

    • Hi Manjunath, You are correct. the lock in of 3 years is applicable for each individual SIP.
      So if you have money requirement after 3-4 years, then monthly SIP in ELSS is not good option.

  107. Hi Vivek,

    I’m seeking more advice from you for my father; He now has 5y to retirement and he ‘now’ wishing to plan his retirement. He can save/invest 20K pm. He can not afford to take risk at this juncture. He needs 1.2L PA in 80C till retirement.

    Accordingly we have set planned together for him as follows
    10,000 pm in ELSS schemes
    2,000 pm in liquid/gilt funds
    5,000 pm bank FD
    3,000 pm NSCs

    Kindly provide your views and suggestions for him; whether this allocation is suitable or not ? Kindly suggest how he can get the maximum out of these 5 years to be in a better financial position at the time of his retirement. His retirement benefits cumulate to 2L and he has savings 1.5L as on date. Kindly suggest suitable treatment to this savings as well the retirement benefits. (He has 4L health insurance from employer & no other personal health insurance cover)

    Do enlighten us more about liquid/gilt funds or (other options if any) for some assured income with returns slightly more than that of the FDs and NSC. For ELSS we plan to allocate these 10K in ELSS schemes of AXIS, Reliance and IDFC.

    • Hi Amit,

      if your fathe rcan remain invested for 5-7 years, then you can consider investing in ELSS funds. Note that ELSS funds invest in Equities and depend on market conditions. Over the 5-7 year time frame, normally they give good returns.
      The ELSS funds selected by you are performing well.

      As his employer health cover will not be available in future, it is better to get pwn health insurance. May be you can add him as part of family floater policy.

      You consider investment in Arbitrage funds, which provide returns similar to Bank FD and risk free and more tax efficient.
      https://wealth18.com/arbitrage-funds-should-you-invest-in-it-details-review/

      • Thanks Vivek;

        I’ll definitely look for arbitrage funds as an alternative to Bank FD as risk free & tax efficient option for him; because for him the tax liability at exit will also matter much.

        Please comment on the liquidity of arbitrage funds. How much time it generally takes to redeem the units in to cash ?

        (Awaiting for your response to an earlier query – related to my investments)

  108. Hi vivek Jain Ji,
    I have read comments in his section, i have observed that you are giving free and unbiased financial advice to the readers, wat wil u get out of it ?

    • i came here to find second ELSS, first being axis which am investing in.., i did some research den picked up reliance tax saver and franklin tax shield, out of two reliance has higher beta value, higher standard deviation and lower alpha still it is beating franklin in returns be it one, three or five year duration. why is it like that, is calculation given wrong ? or is my approach wrong ? what are your charges as financial planner ? will be waiting for your reply, do it when you are relatively free.

      • Hi Hari, Reliance tax saver is giving better returns. it will be mainly because the stocks picked by the fund manager as well as his timing.

    • Hi Hari, I am writing this blog in my free time and solving reader queries. May be I will start full time financial planning after sometime.

  109. Hi Vivek,

    Sorry i have another query how about investing in NPS. We get the tax rebate under 80CCD1B-Additional NPS Employee Contribution over and above of 1.5l of 80c.

    Which are the good options and how it works

    Active choice – Individual Funds {Equity (E), Corporate bonds (C)and Government Securities (G) Asset classes}
    Auto choice – Lifecycle Fund

    NPS also allows you to choose from any one of the following entities to manage your pension fund

    HDFC Pension Management Company Limited
    ICICI Prudential Pension Funds Management Company Limited
    Kotak Mahindra Pension Fund Limited
    LIC Pension Fund Limited
    Reliance Capital Pension Fund Limited
    SBI Pension Funds Private Limited
    UTI Retirement Solutions Limited

    Regards
    Neha

    • Hi Neha,

      You should go with Active choice.
      In Active choice, you can choose 50% in E (Equity) and 50% in C

      Most of the following pension fund managers have given similar returns:
      SBI
      UTI
      ICICI
      Reliance
      Kotak

  110. Hi Vivek,

    I am 29, planning to invest 3k more in ELSS for saving tax and acquire good amount for future. I started investing 1k pm in HDFC tax saver growth- remaining 11 more SIP out of 61.What should i do after this 61th SIP is gone shall i reinvest or amount will be credited to my bank account directly. which are the good options to invest in ELSS. Same withMy husabnd has to start investment 5k pm for tax saving purely in elss which will be the good options for him as well

    for my my pf deduction is- 25000pa

    PPF- 100000- ( 10000pm in 10 installments)

    lic – 11368 PA

    MF- 12000pa

    I understand i am a only with the short fall of 2000 rs pa to meet limit of 1.5l of 80c. but still want to invest considering if i am not able to make PPF to re 1l by the end of financial year.

    one more query how about investing in NPS ( Atal pension yojan).

    Thanks for you valuable time and comments in advance.

    Regards
    Neha

    • Hi Neha,

      You / your spouse can consider investing in following ELSS funds:

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Franklin India Tax Shield (G)

      Note that once you finish your SIP, it is better to remain invested for long term so that you get good returns for your future.

      2) Atal pension yojna may not be that lucrative option. The returns are expected to be lower than PPF…

  111. Hello Sir,

    I am planing for investments and upto 15k per month for ONLY 3 years and I will be happy if it includes tax savings. I have the following queries

    I am not lookin for investing in stocks. And my risk appetite is moderate.

    1. What should be my portfolio of investments ?
    2. If you are recommending the entire 15k to be in ELSS. How many funds should it be diversified in ?
    3. And i dont have much time n knowledge about mf. Hence should i go for an agent based or DIRECT and which option to choose among Growth and DIVIDEND

    • Sir,

      Actually i could invest upto 20k per month.
      The reason I am saying three years is, I would quit my job after 3 years and I would start up something. Hence I may not be in a position to pay monthly installements.

    • Hi Hari,

      if your time horizon is only 3 years, then investing in any Equity funds (including ELSS) will be risky as in the short term , the market may not give good returns.

      1) In that case, you should look into the fixed interest investment e.g. Tax Saving Bank FD

      2) Even if you want to invest in ELSS, you can allocate 15000 into 3 funds.

      3) You should choose GROWTH option. DIRECT plan is better but you can go via Agent as well.

  112. Hello,

    Great work done by you sir,getting huge amount of information.

    I have a dbt regarding holding NAV’s in Demat and not holding in demat, can you please explain advantages and disadvantages over this.

    I have a trading+demat account but it doesn’t allow to trade on MF’s, My sole purpose of investing is only ELSS tax saving and i would like to buy it directly from website.

    I am thinking to invest around 6K/pm could you please suggest.

    • Hi Sandeep,

      Holding Mutual funds in DMAT will have additional cost e.g. charges on buy/sell, dmat charges etc.

      However, if you buy directly from the mutual fund company, these charges will not be applicable.

      You can submit the form online at mutual fund company website and then print and send the documents by post. Alternatively, you can visit the mutual fund branch office or take help of mutual fund agents / distributor.

      You can consider investing in following funds
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Franklin India Tax Shield (G)

      • Thanks a lot Vivek,

        After reading here made an investment of 9k + 1k SIP everymonh in Reliance TaxSaver MF 🙂

        I wish to make another two lumpsum + 2k SIP’s thinking of FranklinTemplate,AxisLongTerm ,please suggest.

        • Hi Sandeep,

          ELSS : You can consider following ELSS funds:
          Axis Long Term Equity Fund (G)
          BNP Paribas Long Term Equity (G)

          • HI Vivek,

            I have started SIP in FT,RelMF,Axis MF,IDFC MF a total of 6500 pm.

            and i am thing to start an SIP in BirlaSunLife ELSS MF.

            Is it good to diversify with 5 MF’s ??, or shall i continue with the above four which i am investing already.

            I have looked into BNP also but it doesn’t allow online so couldn’t invest in it.

          • Hi Sandep, there is no merit in over-diversifying when your investment amount is not huge.

            It is better to stick with 3-4 good funds rather than 10 funds in the portfolio as it will be difficult to monitor the performance.

  113. Dear Vivek,

    Thank you for your regular posts on different investment option and sharing you feedback. Encouraged by your posts I have just started investing in ELSS. Please see below my funds and share your feedback.

    Details of funds

    1. HDFC TaxSaver-Growth – 1000/month (Looking to stay invested at least 5 years)
    2. Axis Long Term Equity Fund – Growth – 2000/month (Looking to stay invested at least 5 years)

    Queries:

    1. How to calculate ELSS returns (Kindly let me know the maturity amount for both funds, and also share the calculation process)

    2. Is it possible to increase the investment amount

    3. Please suggest more funds to invest (Both Tax saver and normal option)

    • You can consider following ELSS funds
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)

      Please note that the ELSS returns are based on the market. There is no foxed guaranteed returns. The returns are calculated based on the NAV.

      You can always increase / decrease the amount.

      Regarding additional funds, please let me know what are your goals and time horizon. You can see the best performing funds below

      https://wealth18.com/best-mutual-funds-to-invest-in-2014-top-performing-mutual-funds-in-india/

      • Dear Vivek,

        Thank you. My goal is to get handsome return and I am eyeing at 5-10 years horizon. I already have Axis fund through SIP (Rs. 2000), please let me know if I can increase this amount to 5000.

        • If you have not exhausted the Section 80C deduction limit of Rs 1.5 lakhs, then you can consider other ELSS funds:

          Reliance Tax Saver (ELSS) (G)

          If you have exhausted the limit, then you can invest in other Equity funds:

          SBI Small & Midcap Fund (G)
          SBI Blue Chip Fund (G)

  114. Hi Vivek,

    Can u please suggest the plan which can give my sister good return.

    She is 35 years,single. Her monthly income is 10,000/-.
    1.She has cash of 1 lac in bank.
    2.she can invest Rs. 1,500/- per month.

    Thank you

    • Can she invest for long term. Whats her view for investing in Equity Mutual funds.

      To start with she can consider investing in Franklin India Opportunities (G) fund

      • Hi vivek,

        She can invest for 5 to 10 years. We don’t know much about MF.

        Can u please guide What she can do with the lump sum amount of 1 lac.

        Thank you

        • Hi Sandhya,

          As the time horizon is long, you can consider investing in Equity funds. However it is better to invest in installments (via monthly SIP option) so that you invest at multiple market levels. She can start a monthly SIP of Rs 8000 so that the money is invested over a period of 1 year.

          She can consider investing in :

          Franklin India Oppor. (G)
          SBI Small & Midcap Fund (G)
          UTI MNC Fund (G)
          HDFC Balanced Fund (G

          If she has not exhausted 80C deduction limie of Rs 1.5 lakhs and has taxable income, she can consider ELSS funds:

          Axis Long Term Equity Fund (G)
          Reliance Tax Saver (ELSS) (G)

          As this is first time she is investing in mutual funds, she can tale help of any mutual fund agent / distributor / banks.

  115. As the markets are heading downward in recent times and expected to go down further with poor monsoon forecast;

    should I consider pulling out funds from FDs/RDs and inject them in equity MFs with a long term investment goal and capital appreciation/gain point of view; or

    should I do the exact reverse and inject more in FDs/RDs?

    • Hi Amit,

      Over the long term, Equities give more returns that FD (provided you invest systematically over long term).

      So you should consider investing in Equity funds for long term.

      • Thanks Vivek;

        I’ve started investing (since May-15)
        2000 pm in HDFC Mid-cap opportunities fund- Growth (through HDFC bank intermediary) and
        2000 pm (4X 500 SIPs 5,12,19,26) in Axis Long Term Equity Fund – Direct Growth (direct online)

        I shall be able to save (& invest the same) 10,000-12,000 pm (total including current investments) from next Nov. Additionally I’m planning to included Birla SL MNC fund – Direct Growth. This FY I need 24,000 in 80c (after HRA exemption, PF contribution and LIC premium are being considered)

        I’ve FDs and RDs worth 2,50,000 maturing in November; I pay 25000 pa in 4 LIC policies (Jivan Saathi, Jival Saral – 2 each in my & wife’s name) with total some insured 5L (Term 25y)

        I’ve plan to accumulate 1 Cr. Rs in next 30Y (till retirement)
        If I break this long term cumulative goal in to shorter term goals-
        1L after 5y from now for girl child’s school entry costs
        7L after 7y from now for a car
        20L after 10y from now for initial payment for a house (may take additional loan)
        8L after 18y from now for girls child’s education
        (all these values are future values and the 1 cr after 30Y value is also inclusive of all these; i.e.; some 50-60L at 30Y would be good enough for me)

        Kindly comment on current holdings and future investment strategies.
        What funds to be added/deleted from the folio as well allocation to them.
        How much should I continue in FD/RDs?
        For gir child I can manage 25-30K PA for Suk. Smri. Yo. in addition to the saving/investment budget. I can add 10-12% every year to the amount available for investment.

        • Hi Amit,

          1) For 80C limit, do you still have shortfall after investments in Axis long term equity ?
          2) You should take a term insurance policy – as your current sum assured is too less. Normally you can get insurance of Rs 50 lakhs for less than Rs 10000 in year. You can compare the online life insurance.
          3) For long term, instead of Sukanya Samriddhi, you should consider Equity funds as chancesa re that you will get better returns.

          4) If you invest Rs 12000 per month for next 30 years, that should take care of your retirement and other goals.

          For other long term investments, you can consider investing in following funds for wealth creating:

          Large cap – Franklin India Opportunities (G), UTI Equity Fund (G)
          Midcap / small cap – SBI Small & Midcap Fund (G) , UTI Mid Cap (G)
          Diversified – UTI MNC Fund (G), ICICI Prudential Exports and Other Services Fund (G)

          Invest in GROWTH Option of all above funds

  116. Hi Vivek,

    I am planning to invert 5000 per month. What should i do? Go for single plan like axis long term equity plan or divide them and go for 2 or 3 plans.

    Please suggest.

  117. But i am investing in HDFC Top 200 since last 4 years. Should i drop this plan or move ahead with same.

  118. Hello,

    Presently I am investing in following mutual funds via SIP. Plz go through it & give your valuable response or suggest me for better investment if any.

    1. HDFC Top 200 – 1500/ Month
    2. HDFC Mid Cap opportunity – 1500/ Month
    3. Axis Long Term Equity- 3000/ Month
    4. Reliance Tax Saver- 2500/ Month
    5. Franklin India Pension Plan – 1500/ Month
    6.Franklin Build India Plan- 1000/ Month.

    Thanks for your response.

    • I personally do not like the MF Pension plan – As such pension plan has no addtional benefits but they carry a 3% exit load for any withdrawal you make before the age of 58. May be you can stop Franklin India Pension Plan and go for normal ELSS plan.

      2) Instead of HDFC Top 200, you can go for Franklin India Oppor. (G)

  119. Hi,

    Thanks for the article.
    I have a Lump Sump of 150000 in hand to invest right now as part of the yearly Tax Saving.
    I am planning to invest as Lump Sump coz If I don’t the funds will be utilized elsewhere.

    I have outlined the below 3 funds for a Lump Sump investment of 50000 each with a Lock In of 3 years. I will keep the funds invested if the market is not performing fairly post the Lock In Period and withdraw at suitable time.

    Axis Long Term Equity Fund (G)
    Franklin India Taxshield Fund (G)
    Icici Prudential Tax Plan (G) Regular Plan

    I am opting for 3 years coz I might have a few commitments to meet 3 years down the line. If the funds are giving good returns I could withdraw them and meet the same.

    Please suggest your inputs on the same. I am planning to make the investment on 1st June 2015. Hence please respond.

    Regards,
    Naman

    • You can consider

      Axis Long Term Equity Fund (G)
      Franklin India Tax Shield (G
      Reliance Tax Saver (ELSS) (G)

      It is better to invest monthly (rather than lumpsum). However, if your situation is that you can invest in lumpsum, you can go ahead.

      Other option will be to invest in respective fund’s Liquid fund and then do a STP into ELSS fund.
      e.g.you invest Rs 50000 in Axis Liquid Fund and then submit STP form so that money is transferred monthly from Liquid fund to Tax Saving fund.

  120. Hi Vivek,
    I have a 5 month old kid and I want to start investing for his future (10-15 year time frame). Rather than going for Child plan, I have decided to take one term plan and invest rest in SIP which could give me tax benefit as well. Please suggest if my planning is right. I can invest 6000 per month, so should I put all the money in one ELSS or buy two. I am looking for high return funds.

    Thanks,
    Arvind

    • Hi Arvind,

      That’s a sensible decision to go with combination of term plan + Mutual fund rather than Child plan.
      You can consider following ELSS funds

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)

  121. Hi Vivek,

    My salary is 9 lakhs per anum. I already investing in LIC jeevan saral(15k PA), Kotak Assured income plan(25K PA) and Franklin Templeton Tax shield G(1000 PA- SIP).
    nd i want to invest 4000/- PM in ELSS. Can i opt for these two and split 2k each ?? pls advise.

    Axis Long term Equity Fund(G)
    Reliance Tax saver(G)
    nd if i continue above funds for 10 years, can i get the 80c tax benifit for these 10 years ???

  122. Hi Sir,
    My salary is 3 Lacks PA. and i am want to invest in ELSS as my taxable amount is 50 K
    My investment is as below.
    Axix Long Term Equity Fund 1000/Pm
    LIC 1100/ PM
    I can Produce 2000/ Pm House rent Receipt.
    So can u please suggest me that do i need invest more amt in ELSS.

    • Hi Sachin, As you need to invest Rs 50000 u/s 80C, then you can allocate the money accordingly.
      Axix Long Term Equity Fund is one of the best performing ELSS.

      Re House rent, do you get HRA from your employer.?

  123. Hi Vivek

    I am 28 and want to invest in MF. I would like to opt for ELSS tax saver. As I am new to this, I request to suggest me the better investment methods.

    My budget is 2500/- per month for 3 years
    which one are the best ?
    How can I invest? Should I open a DMAT account or any other option?
    What could be the returns after 3 years.

    As I am completely new to this process, please suggest me a processed investment procedure which I can acquire good returns.

    • Hi Nirmal,

      First of all, you need to understand, ELSS are tax saving Mutual funds which invests in Equities. The returns are not fixed and dependent on market conditions. So you should invest systematically for long term.

      You donot require DMAt to invest in MF. You need to get your KYC done first . See how to invest in Mutual funds

      https://wealth18.com/how-to-invest-in-mutual-funds-in-india-online-offline-options/

      You can consider investing in following funds

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Franklin India Tax Shield (G

  124. Hi,

    Currently I have 4 MF through SIP of Rs 1000 each.

    a) Reliance Tax Saver – G (ELSS)
    b) Reliance Retirement Fund- G (ELSS)
    c) SBI Emerging Business Fund- G
    d) DSP BR Small & Mid cap – G

    Now, I want to go for 2 more SIP of Rs.1000 each. But my temptation is to go for 2 ELSS funds. Please suggest what to do? If I am OK with my plan, then please suggest the best ELSS plans available. If not, then also please suggest the other funds where should I invest.

    Also, please suggest how long should I hold on to these funds?? I want to continue with all the funds for minimum of 20 years from now.

    Regards,

    Pranjal

    • Hi Pranjal,

      Please let me know if you have alredy exhausted RS 1.5 lakh investment limit u/s 80C or not ?
      If not, then you can additionally invest in ELSS funds.

      If you have exhausted 80c Limit, then you can consider other funds like –
      Can Robeco Emerg-Equities (G)
      UTI Equity Fund (G)

      Also, instead of Reliance Retirement Fund, you should switch to other ELSS fund. Reliance Retirement Fund charges 1% exit fees if you withdraw before 60 years of age. You can consider other ELSS funds like
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)

      • Hi Vivek,

        Thanks for your kind response. I haven’t exhausted the limit. Somehow it goes upto 1 lac.

        You suggested me to go for Reliance Tax Saver (G). But I already have that. Regarding Reliance Retirement fund, I don’t intend to withdraw the fund before 60 years.

        Please see my investment break up again:

        a) Reliance Tax Saver – G (SIP of 1000)
        b) Reliance Retirement- G (SIP of 1000)
        c) DSP BR small & mid cap- G (SIP of 1000)
        d) SBI Emerging business – G (SIP of 1000)
        e) PPF (monthly 1000)
        f) Sukanya Samriddhi A/c (monthly 1000)

        Now Suggest what more should I invest. Which ELSS funds should I opt for? Also are my MF plans are OK or should I think of shifting?

        And finally, please let me know, is it OK if I choose to continue investing in these MF for 25/30 yrs or so? My current age is 33.

        Regards,

        Pranjal

        • Hi Pranjal,

          You can consider additional ELSS funds like
          Axis Long Term Equity Fund (G)
          Religare Invesco Tax Plan (G)

          Regarding, Reliance Retirement- G, I am not big advocate of these retirement funds as they do not give additional benefits as compare to normal ELSS mutual funds.

          These funds are good for long term perspective. It is better to review the performance atleast every year.

  125. Please let me know what is the difference between Axis Long Term Equity Fund – Direct Plan – Growth and Axis Long
    Term Equity Fund – Growth. As Axis Long Term Equity Fund – Direct Plan -growth is showing as not ranked whereas
    the Axis Long Term Equity Fund – Growth as very good to buy on mutual fund meter. If I am already investing in Axis
    Long Term Equity Fund – Direct Plan should I switch to Axis Long Term Equity Fund (without direct)? Please
    suggest…..

  126. Hi Vivek,

    I can invest around 30k max in SIP.

    All are long term. 10 to 15 years.

    I am ready to take risk. So majority can be invested in Equity based funds.

    I was planning to take Finanical Advice from Jagoinvestor but for some reason they have stopped that services till July 2015.

    Please suggest me some good funds.

    I invest in IDFC Premier Equity Fund Growth plan monthly 5000 for the past 1 year. Apart from that not investing in any SIP.

    Thanks
    Vasan

  127. Hi Vivek,

    I recently started investing in the HDFC Tax (G) plan (April 2015; Rs. 1500/- per month). Is it possible to shift to other funds like Axis long-term growth or ICICI’s plan.

    Regards
    Warrier

    • If you want you can stop the investment in HDFC Tax.

      You can then start fresh investment in Axis / ICICI Tax plan. However, the investment already made in Axis, will be locked for 3 years.

  128. Please let me know what is the differance between Axis Long Term Equity Fund – Direct Plan – Growth and Axis Long
    Term Equity Fund – Growth. As Axis Long Term Equity Fund – Direct Plan -growth is showing as not ranked whereas
    the Axis Long Term Equity Fund – Growth as very good to buy on mutual fund meter. If I am already investing in Axis Long Term Equity Fund – Direct Plan should I swcith to Axis Long Term Equity Fund (without direct)? Please suggest…..

    • Hi harish,

      Direct plans are just one option for the same mutual fund scheme.
      You make saving in direct plan as no commission is paid to agents. It is allowed only if you make investment directly.

      Read more about direct plans
      https://wealth18.com/earn-more-from-direct-plan-of-mutual-funds/

      e.g. Over last 1 year, Axis Long Term Equity Fund (G) has given return of 49% , while the DIRECT plan has given 51%. (benefit of 2%)

      Agents / Banks will not prefer you to invest in Direct plan as they will not get any commission. So you need to submit the form directly to the company. Make sure that in the form , where broker code is to be written, you enter “DIRECT”. and in the plan name you add the word “DIRECT”

  129. Please let me know what is the differance between Axis Long Term Equity Fund – Direct Plan – Growth and Axis Long Term Equity Fund – Growth. As Axis Long Term Equity Fund – Direct Plan -growth is showing as not ranked whereas the later one as very good to buy on mutual fund meter. If I am already investing in Axis Long Term Equity Fund – Direct Plan should I swith to Axis Long Term Equity Fund (without direct)? Please suggest….

  130. One imp question, please answer :
    I have read this line.

    But in case of a SIP each installment is a purchase transaction and each of these installment is locked for 3 years from the day it is invested. It works on the First-in First-out (FIFO) method. So in case you wish to withdraw entire amount you invested in 3 years through SIP, it will take 6 years. Be clear of it and then take a decision to invest

    Is it true?
    So at end of 3 years, if am investing by sip monthly, I can not withdraw at end of 3 years?
    Because End of 3 year also, i am paying monthly.
    So last monthly amount also will be having 3 year lock in right? so it will practically take 6 years to withdraw?

    • You are right.

      If you investing monthly then you can withdraw that amount only after 3 years of that installment.

      So SIP amount invested in Jan 15, can be withdrawn in Jan 18
      SIP amount invested in Jan 16, can be withdrawn in Jan 19
      SIP amount invested in Jan 17, can be withdrawn in Jan 20
      SIP amount invested in Jan 18, can be withdrawn in Jan 21

  131. if i invest 2.5k in axis and reliance and franklin, does the number of shares they buy will be same?or there is no concept like number shares buy in elss? also out of these some funds might have started early like 15 years before and axis like funds might have started may be 5 or 7 years, is there any advantage of buying newly started funds than very old funds?

    • As long as funds have decent history, it should be OK. I would not prefer to invest in funds are are very new as do not have any history.

      Different funds can invest in different shares or different quantities.

  132. Sir,Please suggest me which is the best ELSS MF for investment for tax saving.

    I want to invest 5000 Rs per mount & my knowldge will be going trough below mutual funds.

    1.ICICI Pru tax plan-1000
    2.Axis long term equity(G)-1000
    3.Rliance Tax saver (ELSS)G-1000
    4.Birla SL tax relief 96-1000
    5.SBI magnum tax gain -1000 plz suggest is good.

  133. Hi vivek
    I am 27 years old. My monthly income is around 38k. I don’t have any ppf ac.even I have not invested a single penny in elss or any other tax saver scheme. Now I I want to invest right from d beginning. But d prob is lack of knowledge. I have read so many articles about elss but no body tells whom to contact? Is dere any option available to invest online ? Or I have to go to d respective branch. Plz guide me as I am just a begi

  134. Also if I stopped 3 years tax saving plan after one year , then can I will get returns for one year or not. Is there any way to stop 3 years tax saving plan after one year if performance of scheme is not good.

    • In ELSS scheme, there is no requirement that you need to invest amount every month for 3 years.
      The 3 year lock-in means that whatever investment you make , you cannot withdraw earlier than 3 year.
      You can make only 1 time investment Or you can invest for any number of months.

  135. Hi,

    i took SBI tax saver scheme for 3 year , from this May . So can I get returns in after 3 years for first year installment or I have to wait again 3 year after last installment.

    • You can withdraw / shift the ELSS investment after 3 years of making that installment.

      For investment made in May 2015, you can withdraw / switch in May 2018
      For investment made in June 2015, you can withdraw / switch in June 2018 and so on.

  136. I want know what is 3 year locking period means , it is for first investment date or from last investment date. How many year required to get all fund return. can i change scheme after 3 year locking period completed ?

    • Hi, The 3 year lock-in period is applicable for each investment.
      You can change the scheme after 3 years.

      e.g. if you start a SIP every month from Jan 15- Dec 2015, then the 3 year lock-in, for each month will be Jan 2018 – Dec 2018

  137. Hi Vivek
    I am 39 now and want to invest MF, very confused where to start with, I want to opt for ELSS Tax saver

    My budget is just Rs.3000/month for 3 years
    1. Can i bifurcate it into atleast growth based portfolios
    2. Which one are the best to invest
    3. How much i will get in return after 3 years
    4. Where should i go to open it or what is the procedure to open it

    Please help

    Thanks
    Shamik

    • Hi Shamik,

      First of all, you need to understand that ELSS is an Equity mutual fund and therefore has similar risks. It is not similar to PPF etc. The returns and risks are dependent on stock market conditions.

      Though there is a lock in for 3 years, but you should be able to hold for longer duration if market is not doing well in that year. Ideally for any Equity MF, your investment duration should be long term (7-10 years)

      1. Best ELSS funds you can consider are:
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Franklin India Tax Shield (G

      2) The returns are not guaranteed. over the last 3 years, the returns were 15-20% . However it is not sure that you will get the same returns. Ideally you can expect around 12-15% over long term.

      3) You can invest in MF through agents or directly. You need to first get your KYC done.
      If you go through an agent, he will help you with KYC as well.
      You can approach your bank (as they are agents as well) or go to MF office branch. You can also visit MF site and then submit the form and send them by post.

  138. Hi,
    I am investing in AXIS LONG TERM EQUITY FUND – GROWTH PLAN. And want to know whether it is coming under RGESS to save tax apart from 80c section. If not plz suggest some good ones.

  139. sir.my income is 25000 per month.i want investment in elss so suggest me.also i want child for eduction plan my child is 9 months old..

    • Hi Raj,

      Do you want to invest in ELSS to claim benefit u/s 80C. You can consider the following:

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Franklin India Tax Shield (G

      Regardimg, the Child education plan, do you have something specific in mind. You should take a term life insurance policy for security. For investment, you can build a portfolio from Mutual funds.
      If you invest Rs 3000 per month for 18 years, you can build a corpus of Rs 23 lakhs (assuming 12% CAGR return)

      Some of the best funds you can consider are:
      https://wealth18.com/best-mutual-funds-to-invest-in-2014-top-performing-mutual-funds-in-india/

      UTI Equity Fund (G)
      ICICI Pru Focused Bluechip Eqty (G)

      Birla Sun Life MNC Fund (G)
      SBI Small & Midcap Fund (G)
      Can Robeco Emerg-Equities (G)

  140. Hi

    I am looking for an investment of around 60000 for 3 years in ELSS which can help for my Tax savings plus an amount required for the down payment of home purchase after 3 years. What is the best way to invest. Pls suggest.

    • Hi, You can consider following ELSS funds
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Franklin India Tax Shield (G

      Please note that as these are Equity based funds, the time frame of 3 years is too less. You should invest for a longer term. It may be possible that the market are not performing well for few years when you need money, so you should be able to hold the investment for long term.

  141. Dear Mr.Jain,
    Hello sir, I want to invest in some ELSS funds I have been investing in Franklin India Smaller companies for the past 1 year. I invested about 200K…does this fund fall under the ELSS category? If not could you please name some funds both High risk funds and Low risk Funds..I already investing most of my money in Equity so I am looking for something with medium risk. And I ok for a lock in period of 3 years…I am 31 I have invested 60% of my money in Equity 10% mutual Funds 20% in FD….I need to invest about 80K an year as I have an insurance policy for which I pay approx 85K…..

  142. Dear Vivek,
    Based on my knowledge and understanding the teachings from this post and comments therein; I’ve selected following funds for investing both ELSS and ‘non-elss’ type. Kindly provide your views and comments

    Axis Long Term Equity Fund (G) (15000 in 8-10 SIP installments till April-16)
    Reliance Tax Saver (ELSS) (G) (15000 in 8-10 SIP installments till April-16)
    Birla Sun Life MNC Fund (G) (10000 in 8-10 SIP installments till April-16)
    Franklin (I) Smaller Cos (G) (10000 in 8-10 SIP installments till April-16)
    JPMorgan (I) Smaller Co. (G) (10000 in 8-10 SIP installments till April-16)

    I have 60K to invest this year out of which I need only 30K as tax saving investment. I can stay invested up to 5-6 years, provided no emergency financial crises arises. (For that reason only I dont want to ‘lock’ entire amount in ELS and keep some amount liquid)

    Kindly provide your views.

    Thanks in advance.

    • Hi Amit,

      The funds selected are good for long term.
      Note that other 30K you are investing in small/mid cap fund, which has higher risk. So you should remain invested for long term.

      • 1) I invest 1000 in a fund on 7th of every month as 12 separate investments (not SIP of a lump commitment) – total 12,000 in 12 months
        2) I invest 12000 rs in 12 SIP installments of 1000 each on 7th of every month

        Does it make any difference whether I invest in either style 1) or 2) ?

        • It does not make any difference.

          In the first option (not using SIP), there are chances that you will forget to invest . If the market is high on that date, you will think lets wait for tomorrow to invest. The whole idea of discipline get lost.

          Also many MF require a minimum of Rs 5000 investment as Lumpsum investment.

  143. vivek bhai,

    If i invest 2500 in axis mf or relaince mf or any other mf per sip, is it some thing like for 2500 rs they buy a share?
    So the number of shares they buys using the 2500 rs using my money , will be same in axis elss and relaince elss or hdfc tax saver?
    Or there is no concept like number of shares in ELSS funds?
    The point i am thinking is , in ur blog there is chart which shows AUM( 2015), for some funds its very high comparing to other funds. Probaably it might be because they have not completed 10 years or 15 years.
    so if i buy a elss fund which has complted 15 years the AUM will be high. If i buy elss which is less than 5 years AUM will be less. So is it better to invest in ELSS with small amount in ur chart, or the elss which is not complted 15 years? please correct me if am non-sense. i just assuming things based on the reading.

    • Hi, AUM is total fund managed by that company for that scheme. For e.g Axis ELSS is managing approx 3000 crores.

      it is not necessary that funds with less AUM is better or funds less than 5 years is better. You should look at the performance of funds over past few years.

  144. Hello Vivek,

    I’m Anurag, pretty new to the ELSS/Mutual fund thing. I’m 30 and till date I have been investing only in PPFs & LICs for the tax saving & safe returns. I’m thinking to invest some money in ELSS, upto 40k annually. I’m totally new to these schemes, could you please advice a good scheme to me? I’m looking for investing upto 10-12 years.

    Thanks,
    Anurag.

    • Hi Anurag,

      It is good decision to invest in ELSS for long term. You can consider following funds:
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Franklin India Tax Shield (G

      You should select GROWTH option for these funds.
      It is better to invest monthly via SIP option.
      You can either invest through agent or directly with Mutual fund house (by entering DIRECT Option in the form)

  145. While selecting sip , there is an option like ” perpetual sip”does any one tried that? if i select that will it be hard to withdraw my investment after 5 or 10 years if i want?
    Or should i select normal ” end date ” for sip payments?
    If i select end date, Do renewal task is hard ? or can it be easily done?

    • Even if you select perpetual SIP, you can stop it whenever you want.
      Also, the renewal is not hard, you can do so by submitting the form when the renewal is coming due.

  146. What are the differences in between the Direct-Growth, Regular-Growth, Regular, Groath, Divident, which is benificial to the investor.

    • There are 3 options
      Growth
      Dividend
      Dividend re-investment

      In terms of mode, there are
      1) DIRECT – If invest directly with MF house
      2) Regular – if invest with agents

      Investor should opt for “Growth” option. If possible DIRECT mode.

  147. Hello Sir,

    I would like to invest RS 2000 PM in Axis Long term Equity Fund (G) through SIP. Please suggest where to invest Axis Mutual Fund Office or Fundsindia or anything else which one is good. Also, please tell me what is the difference in investing from them on it.

    Thanks……

  148. Hello,

    After reading through your comments and suggestions. Plan to invest in Axis Long Term Equity (G) through SIP — monthly RS. 2000. But the confusion is where to invest? — Axis Mutual Fund Office or FundsIndia or anything else which is good. Please suggest and tell me the difference on it.

    Thanks…

  149. Hi Sir,

    I would like to invest in ELSS through SIP. Which one is best to go for it. Please suggest. I’m new to this, pls. tell me how to buy the ELSS through SIP.

    Thanks in advance.

    Regards,
    Harish

  150. Hi Vivek ji,
    I want to know that if there is any locking facility for ELSS mutual funds as the growth fluctuats and we can not exit load prior to three years. But if there is lock facility then we are able to lock the earning. Otherwise there might be a loss if the NAV got down. So please tell that if there is such facility or not?
    And please give your contact details because we want to start a company and we need consultation of an experienced CA.
    Thanks

    • Hi Rajesh,

      ELSS is Equity based mutual funds and the NAV / Returns are dependent on market conditions. The NAV will fluctuate on daily basis depending on the market price of underlying shares.

      There is no lockin for earnings. However, if you remain invested for long term, the chances of getting better returns are higher.

  151. my entry is new for sip investment, i have planned 1 lack p.a. saving for tax saving 10000 p.a., i have planned 40 persent of basic p.f. deduction from my salery (50000 p.a. appx)…is it right step ??..and remaining 50000 p.a. saving in which plans..?? what should i do..? please suggest

    • Hi Sandeep,

      Are you salaried employee / business ?

      You can consider investing in following ELSS funds for tax saving:
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Franklin India Tax Shield (G)

      You can invest in PPF for the balance amount.

      You can also consider to take a term insurance policy.

  152. Hello Sir,
    I use to have 3 ELSS Funds SBI Magnum from 2010,HDFC Tax Saver from 2012 and CanaraReboco Tax Saver from 2013,I stopped All my ELSS fund in year Jan-2014 as I purchase Home so paying HomeLoan is sufficient for it,but Again from May-2015 again I want to Start any 1 ELSS Fund for my daughter future which is going to be minmum 10 year long ,So please let me know which fund should I start among the above 3 or shall I start any new,BTW FYI among all these funds I got maximum return from SBI.
    Your Suggestion will be appreciated.

      • I am planning to invest 5k per month, do you recommend 2.5k on above funds?
        Are these plans good only for 2015 year? do you think in long run like 10 years will these funds perform well?

        • These funds are performing well over last 5 years. Though it is not guaranteed, but these are expected to perform well in future as well. It is always advisable to review the portfolio every 6-12 months and make adjustments.

          • Hi Vivek bhai,

            Adjustments? You mean if any of my ELSS funds are performing bad, is there any option like switching or adjusting SIP amount?
            Also I pourchased a folio( axis) online and assosiated my folio. Do I just select the SIP amount or is there any option like selecting any funds inside ( Axis Elss long term )

          • Hi, Within 3 year of lockin period, you cannot switch the ELSS fund. However, you can switch it after 3 years.
            You can always adjust the SIP amount i.s. increase or decrease the SIP amount.

            CAn you explain a little about the way you invested? Did you invest via Axis MF website.? Whle investing you need to select AXIS Long term Equity (ELSS) Plan.

          • Hi Vivek bhai,

            I have purchased from axis mf website.
            The scheme which I have chose is ” AXIS LONG TERM EQUITY FUND DIRECT GROWTH-GROWTH” is it axis elss which you are suggesting?
            I just have associated the folio number to the axis mf online account and 500 rs in it. Where I can select SIP and monthly adjustments like ( increasing and decreasing the sip )
            Please advise .

          • Yes this is the ELSS fund – AXIS LONG TERM EQUITY FUND DIRECT GROWTH-GROWTH

            In Axis MF account online, you can increase or decrease the SIP amount there.

  153. Hi Vivek,

    Thanks for the previous post more details on tax saving funds. I got the clear idea on this funds. I would like invest go for investment on axis long term and reliance tax saver. I have already share khan online demat account. In share khan for demat account holder there is option to invest mutual funds by online. Should i need to invent by share khan or do i need to open some direct mutual fund account? Is this the good idea to invest from share khan? Could you please share your thoughts.

    Thanks in advance.

    • Before buying from ShareKhan, please check what charges they levy for their Mutual fund transactions. Also note that with them you will not be able ot invest in “DIRECT” Mutual fund plans.

      If you want to invest in “DIRECT” Plans, you need to go directly to MF office or Inventor centres and not through any distributors. Going direct will save you approx 0.5 – 1% in annually.

  154. Hi Vivek,
    I would like to invest 4-5000 pm in an ELSS tax saver.
    I would like to invest about 3500 pm in an equity linked fund and 1500 pm in a debt fund.
    Kindly suggest the two best funds i can make this investment into and you would highly recommend.
    I would like to stay invested for a minimum of 10 years and looking at wealth creation to have a corpus enough to buy myself an apartment, I am currently 29 years of age and my salary is about 5 lacs p.a.
    I would also like to know if it is possible to either increase or decrease the amount allocated into each fund whilst staying invested?

    • Hi, You can consider following funds

      For ELSS
      1) Axis Long Term Equity Fund (G)
      2) Reliance Tax Saver (ELSS) (G)

      For other funds:
      UTI Equity Fund (G)
      SBI Small & Midcap Fund (G)

      Reliance Dynamic Bond (G)
      UTI Dynamic Bond Fund (G)

  155. Hiii vivek
    i m working in IT COM WITH 40k pm.and i want to start investment in MF FOR tax saving n good return.this time i m 27 yr old.
    i can invest 10k-15k per month,i m confused in taking
    ELSS,PPF N LIC POLICY.I WANT TO invest in all these.but how to start and where we invest for better tax saving n returns.plzz suggest.

    • For tax saving, you can invest upto rs 1.50 lakhs u/s 80C. You can allocate amount to PPF, Insurance as well as ELSS Tax Saver funds.

      For ELSS funds, you can consider investing in
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Franklin India Tax Shield (G

  156. I would like to invest 24k in ELSS with a 2k SIP. Please suggest whether it is good to invest in 2 different funds or one? if so on which all Funds? I want to invest for a long term 10-15 years.

  157. Hello Sir,

    I am new in mutual fund investment. Need support.

    I am looking to invest in ELSS.

    Can you please suggest me best 3 or 4 ELSS funds to invest based on current market performance or situation ?

    As per my analysis, Axis long term equity & Franklin India Tax shield are good one.

    I saw top 10 performing, but confused which one to select.

    Hopping for quick support.

    Thanks.

    • Hi jalpesh,

      You can consider following ELSS funds
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Franklin India Tax Shield (G
      Religare Invesco Tax Plan (G)

  158. Hi

    I need to invest 5000 pm in elss , please advise in which scheme shud i invest as i have heard lot for axis or birla sunlife , i have a query look as ther is an 3 yr lock in period for exit , so if i i pay 2000 pm * 36 as (3yrs ) then can i withdraw my complete amount 72000 or fund value as on date after 3 yrs , full withdrawal .
    Plesae advise the best way to invest for tax savings .

    • ELSS funds have 3 year lockin period and the lock-in is applied for each investment amount.
      so amount invested in May 2015 can only be redeemed in May/June 2018
      so amount invested in Jan 2016 can only be redeemed in Jan/Feb 2019
      so amount invested in Jan 2018 can only be redeemed in Jan/Feb 2021

      You can consider investing in
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Religare Invesco Tax Plan (G)

  159. Hi Vivek,

    As per your advice provided above , I planned to invest around 5000 every month using SIP . Right now I bought Axis Long Term Equity (G) for 2500 . Automatically System generated SIP start date s 01 May 2015 . The order was placed. When I tried to buy another fund , SIP start date is displayed as 01 June 2015. Why is that so?? I am not able to modify also. And I have searched for Reliance Tax Save(G) . I couldnt able to find it. Please help.

    • Some funds require application before 30 days to start a SIP.

      The fund name is Reliance Tax Saver (ELSS) Fund (G)

      How are you investing in these funds? Through their website or other online portal?

  160. I am planning to invest Rs 5000/month in Reliance Tax Saver (ELSS) (G) Fund.
    Kindly, suggest will it be the best investment in any ELSS ??
    And for how many years either 3 or 5 will be best??

    • You can split your investment in

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)

      ELSS funds have lockin for 3 years. However, for any equity funds, you should have long term horizon.

  161. Hi Vivek,

    thanks for your doing great job. I have two big confusion question on SIP and lump sum amount
    1.For SIP investment : I can withdraw money only after 3 years (For Every SIP has 3 yrs lock-in period)
    2.Lump sum amount : I don’t have any idea on how market status goes on
    3. I will start SIP from next month so after 1 year I will deposit lump sum amount in the same ELSS Mutual fund?
    4.please suggest me two best ELSS funds for my tax saving and I’m looking after 5 years with good returns

    please suggest and thanks in advance

    Thanks,
    Vishwanath

    • You can consider investing in following ELSS Funds
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)

      1) In case of ELSS SIP, each SIP will have a lockin of 3 years.
      2) it is better to invest via SIP rather than lumpsum as you can average the investment price.

      • Hi Vivek,

        Thanks for your good suggestion, As you suggest so I have started investing in
        1. Axis long term equity Fund- direct -growth – 2K per month for 3 years SIP
        But I have not interested for Reliance so can you suggest me some more (another 3 ElSS Mutual funds) so I want to reduce my tax deductions.
        1)I have invested in PPF from last years -do I need to split amount for both?
        2)I will invest some other MF like large cap, mid & small cap funds?
        3)I will invest another 3 more ELSS MF (SIP for 1K per month)?

        please suggest me and thanks in advance

        -Vishwanath

        • Other ELSS funds, you can consider are:
          Franklin India Tax Shield (G
          Religare Invesco Tax Plan (G)
          ICICI Pru Tax Plan (G)
          BNP Paribas Long Term Equity (G)

          1. You can split your investment in PPF & ELSS
          2. Apart fro Tax saving, if you wish to invest for long term wealth creation, you can consider start investing in Equity funds ( Large cap, mid cap, diversified etc). Some of the best performing funds are listed below
          https://wealth18.com/best-mutual-funds-to-invest-in-2014-top-performing-mutual-funds-in-india/

          • Thank you again !

            As per your suggestion and my research I have started my SIP for below funds, pls have look

            1.ELSS : Axis long Term equit -2K
            2.Large Cap : ICICI Pru Focused Bluechip Fund
            3. Mid & Smal Cap : HDFC Mid-cap Opp. Fund
            4.Diversified Fund : Franklin India High Growth Comp Fund
            5.Balanced Fund : HDFC Balanced Fund

            all are 1K for every month SIP. Please let me know your opinion. Im at good and balanced protfolio? for 5-10 years wealth creation.

            Thanks,
            Vishwanath

          • Hi Vishwanath,

            You have chosen good funds and allocated money sensibly. Going forward, you can increase your SIP in Mid/Small cap as they give higher returns provided you remain invested for long term and invest systematically.

  162. Hi Vivek,

    My monthly salary is 38,000. I am investing 8000 every month in FD. Below is my mutual fund investment details. I am planning to invest additional 1000 in 2 Mind & Small cap funds each. In this case i am investing 1/3rd of my income in mutual funds. For next 2 years i don’t have any commitment. Can you advice whether my decision is right or risky?

    ELSS Tax Saver:
    Axis LT Equity Fund(G) – 3000/month
    Reliance Tax Saver (ELSS) Fund(G) – 2000/month

    Large CAP:
    ICICI Pru Focused BlueChip Eq Fund-Reg(G) – 1000/month

    Small & Midcap:
    Franklin India Smaller Cos Fund(G) – 1000/month
    Birla SL MNC Fund(G) – 1000/month

    Diversified Fund:
    Franklin India High Growth Cos Fund(G) – 1000/month
    UTI MNC Fund(G) – 1000/month

    • Hi Ram, The funds you selected are good from long term perspective.

      The mantra is that you continue your SIP every month for long duration and remain invested.

  163. Sir, i am searching some good aveues to invest somewhat around 15000 per month. Right now i am contributing Rs. 6000 pm in PF (compulsory contribution is Rs. 3000 only) and Rs. 3000 pm in PPF. Further i am making annual payment of Rs. 27000 towards LIC. I am 27 yr old and want to invest in best. Further i am willing to invest in MF through SIP or ELSS but i am suggested that since the markets are at peak and bound to correct i should wait and watch or invest in debt funds or in PPF.

    Kindly advice me that how could i re allocate my saving targets if i am not interested to invest much in PF or PPF.

    • If you are investing for long term in Equities, you should not think about the current market levels. there is no guarantee that market will go down. Also if it goes down, you may not be investing all your money at that time.

      Investing via SIP option help you to average your price and remove the sentiment aspect and systematically invest money every month and brings discipline to your investment.

      As you have not exhausted your 80C limit, You can consider following ELSS funds
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)

  164. Hi Vivek,
    Thanks for sharing such a good article with us.
    I have query regarding ELSS Vs Tax FD which is better option with lump sum amount and why ?

    I have already started my SIP but i need to save more 7k to 8k for FY-16, my opinion is reinvest this more every 3 years for next 15+ years . Please suggest me, whether i m wrong or right
    Or is there any ways to maxmize the return as i am looking for long terms.

    • Hi Shalabh,

      Though TAX FD provide deduction u.s 80C, its interest is taxable. So post tax the returns will be less than 6.5% (if 30% tax bracket).

      In that sense ELSS is better if you are investing for long term. If you invest systematically, the chances of getting good returns with ELSS are higher.

  165. I am Shivkumar Kurnawal (age 34 year) working in a BSNL, Public sector Undertaking as a Jr. Telecom Officer at Pune.
    My son omkar Kurnawal (age 4 years) now taking admission for L.K.G., My wife is homemaker. We are family of three.

    Sir, i want suggestion/guidance for investing money for the education of my son & want plan for retirement.

    Now he his of 4 year old. At his age of 17/18, i.e. after 13/14 year his higher education will start may be medical/engg/Management as pr his choice, so i want certain lump sum about minimum of 40 lakhs.

    My Salary & current investment details are as given below

    After deductions of home loan EMI take home pay is=30,000/-

    My home expenses=17,000/-

    Personal/Home Loan=12, 00,000/-
    of which Rs.2,00,000/- is paid, Monthly EMI of Rs.15,000/- deducted from my account.

    My PPF account- investing —-Rs.12000/Annum……..currently hold Rs. 50,000/-
    My Son, Omkars PPF account— Rs. 6000/annum………currently hold Rs. 6000/- opened in dec-14

    Towards Employees providant fund my salary deduction is
    7000/- which is 12 % of basic salary+DA

    My Current Investment detail are as follows:—

    1. HDFC Children Gifts – Investment Plan – Direct Plan – Growth ——–Rs.25000/- lumpsum invested in month of oct-2014

    SIP:

    HDFC Mid-Cap Opportunities Fund – Growth – Equity – Diversified—- Rs.1000—monthly
    2. Reliance Growth Fund – Direct Plan – Growth – Equity – Diversified—Rs.1000-monthly
    3. SBI Blue Chip Fund – Growth – Equity – Diversified—-Rs. 5000—–one time investment
    4. Reliance ELSS fund: ———Rs.500—monthly.

    Insurance:

    SBI E-SHIELD POLICY FOR Rs. 30 lakhs for year of 30 year—– yearly premium is —Rs.7500.

    KINDLY SUGGEST suitable investment strategy to meet my goals.
    Pl. intimate me if any other details are required.

    Thanking You.

    PL GIVE YOUR CONTACT NUMBER SO THAT I WILL CALL YOU SIR .

    • 1) Your yearly PPF investment is Rs 18000 = which will be approx Rs 5 lakh after 14 years
      2) HDFC Children Gifts – Investment Plan may grow to approx 80-90K after 14 years
      3) SBI Blue Chip Fund of Rs 5000 may grow to Rs 18000 after 14 years
      4) Your 3 ELSS of Rs 2500 per month, may grow to Rs 10-15 lakhs (assmuning 12-15% CAGR)

      In total based on your current investment, the balance will be approx Rs 16-21 lakhs after 14 years.

      You should invest additional Rs 4000 per month for next 14 years, you accumulate another Rs 20 Lakh. SOme funds you can consider ~:
      Large cap – Franklin India Oppor. (G), UTI Equity Fund (G)
      Midcap / small cap – SBI Small & Midcap Fund (G) , UTI Mid Cap (G)
      Diversified – UTI MNC Fund (G), ICICI Prudential Exports and Other Services Fund (G)

  166. Hi Vivek,
    Thanks for sharing such a good article with us.

    I have query reagarding ELSS Vs Tax FD,which is best option for lumpsum amount and why?

    I have already started the SIP in ELSS, i want to save more 7k or 8k in this FY-16. My point is to reinvest that amount in after 3 years repeatly for next 15 years. So it is a wise decision or a wrong decision ?

    So please provide your input on above question,so then i could proceed further.

    Thanks,
    Shalabh

    • Hi Shalabh,

      Personally, I will go for ELSS especially becuase of following reasons:
      1) Interest on Tax saving FD is taxable, but ELSS capital gain is tax free
      2) FD interes tis fixed approx 9%, but ELSS can give better returns in long term.

      If you re-invest the amount repeatly, your long term wealth will not grow. As your investment amount will be same and only the profits will be added. However, if you continue investing additional amount eac year, you will build corpus for the future.

  167. Hi Vivek,

    It was very useful post by you which helped me to know a bit about ELSS.
    Can you please let me know how to buy Axis Long Term equity fund elss?
    Will the duration of investment be fixed/decided at time of purchase of bond or it can be changed later On.
    And what will be procedure for withdrawing money after 3 years/5years? Will it be given to me in form of cheque or direct NEFT transfer?

    Sorry some questions may look silly to you but hope you understand as i am totally new to ELSS. Thanks in advance.

    • Hi Rohit,

      You can buy the fund either through the mutual fund branch or through agent / bank.
      You can also submit the form online Axis Mf website and then take print and sent by post.

      https://wealth18.com/how-to-invest-in-mutual-funds-in-india-online-offline-options/

      ELSS funds are fixed for minimum 3 years. After that you can remain invested as long as you want. There is no fixed period.

      At the time of withdrawing money, you just need to submit the withdrawal form and the money will be credited to you account in 2-3 working days.

  168. Sir, I would like to Invest Rupees 1000/- each into three different ELSS as SIP during the financial year 2015-2016 for the lock in period of three years. Can you suggest me good funds?

    • You can consider investing in following 3 ELSS funds which are performing well

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Franklin India Tax Shield (G)

  169. I want to invest in ELSS but dont have any idea in which to invest and how to select…..Can u please give some basic knowledge about it

  170. Hi Vivek,

    I need to invest in mutual funds and thus thinking of going for ELSS for tax saving and would like to claim max benefit.
    My horizon is till first half of 2018 i.e 3yrs. I will invest for nearly 15 months in an SIP and then pull out in 2018. Please suggest if ELSS is suitable as I need to save tax as well as invest but the investment made after 2-3 months would not complete 3yrs.

    Please help as I need to start early.
    Thanks in advance.

    • You are correct. Each SIP amount will have lock in for 3 years. So if you want to withdraw all money at once, you may not be able to do so.

  171. I want to invest Rs.40,000/- in ELSS and Rs.3,000/- pm in tax saving SIP for the FY2015-2016. Please suggest where to invest?

    • HI Anurag, ELSS and tax saving SIP is same thing.
      You can consider following ELSS funds :

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Franklin India Tax Shield (G
      Religare Invesco Tax Plan (G)

  172. Hi Vivek,
    Me n my Wife having salary of around 30k so we want to invest in ELSS so what would be the right ELSS n how much ?
    kindly guide me ?

    • Hi Prashant,

      Investment in ELSS will also depend on how much you are investing in other products to claim deduction us 80c. also it will depend on your goal and risk appetite.

      If this is the first time you are investing via mutual funds, you may start with small amount to understand it much better.

      You can consider following ELSS funds :

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Franklin India Tax Shield (G
      Religare Invesco Tax Plan (G)

  173. Hi Sir,

    I have plan to save a minimum amount to my daughter & son for future needs
    please advice me which plan will be taken and what is the minimum amount per month

  174. Also If i am am investing through SIP( monthly) for ELSS ,
    Lets say i am investing 1000 per month and can i invest 2000 on some months ?
    OR the monthly investments have to be fixed?
    What will happen if i miss one or two monthly investments?

    • Hi, Monthly investment amount is fixed. However, you can invest in lumpsum in any month you wish.
      Even if you miss 1 or 2 installment, there is no penalty. But if you miss 3-4 installment, the mutual fund company will cancel the SIP subscription and then future installments will be stopped.

      • thank you for reply. you are doing an awsome job here.
        the tax benefeit is only for first year only? or can i use it for all years i am investing?

        • The tax benefit will be available in the year of investment. if you continue investing in 2nd year, you can claim tax benefit in 2nd year as well.

  175. I am new to investment. i am eraning 6.5 lakh per annum, I paying house rent ( 126000) per annum . and PF extra. I have onle LIC which I pay 50040 per annum.
    I have started a PPF account this march. But not yet start investing yet.
    I can spare 7000 per month for investment.
    should i invest only on ELSS? if yes how should i split the amount?
    Should I also invest in PPF?
    If start investing on both, the tax benifit will be only for the first year only?

    • The tax benefit will be available for the amount invested in that year. For investment in PPF or ELSS in this year, you will get tax benefit this year. For invest in next year, you will get tax benefit in next year again.

      You can split amount between ELSS and PPF.

      You can consider following ELSS funds: Axis Long term equity, Reliance Tax Saver

  176. Hi Sir,

    I wanted to start investing in Mutual Funds. I have short listed Reliance and Axis Tax saver Fund Direct

    Can you please help me how much can I invest per month in order to save tax and growth

    ++ I have planned to invest 2500 in each Reliance and Axis tax Saver
    ++ Can you help me to select mutual funds so that I can make balance in Income and Tax saving as well.
    ++ My total investment plan would be somewhere 10k permonth

    Thanks
    PIyush

    • Hi Piyush,

      You should invest in ELSS funds, if you ahve not exhausted your 80C Limit.

      For amount over and above that, you can consider investing in other funds :
      arge cap – Franklin India Oppor. (G), UTI Equity Fund (G)
      Midcap / small cap – SBI Small & Midcap Fund (G) , UTI Mid Cap (G)
      Diversified – UTI MNC Fund (G), ICICI Prudential Exports and Other Services Fund (G)

  177. Dear Sir

    I am new to mutual funds. I plan to invest approx. Rs 50,000 in ELSS to save tax and at the
    same time, get good returns on my investments. Can you please suggest me which
    fund or funds I should opt for, invest as a lump-sum or as SIP, for what
    duration, and how to go about this investment-through an agent or directly
    online?

    Regards

    Dr.Syamal Modi

    • Hi Mr Modi,

      You can consider investing in following ELSS

      ELSS – Axis Long term equity, Reliance Tax Saver, BNP Paribas Long Term Equity (G)

      It is better to invest via SIP mode.

  178. Hello Sir,

    I am Nitin. I am very new in share market. I want to invest in ELSS MF. Can u suggest what is good for me. i want to invert in SBI mangum tax gain or HDFC Tax Saver(D) with in 3 or 5 year locking period.

    • Hi Nitin,

      All ELSS fund have 3 year lockin period. After that you can remain invested as long as you wish.

      You can consider – Axis Long term equity, Reliance Tax Saver

  179. Hi,

    It was very useful post by you which helped me know a bit about ELSS.
    Can you please let me know how to opt for HDFC tax saver elss bond. Shall i choose some other and what shall be duration of investment?
    And if we invest for say 5 years, can we withdraw money in between 3-5 years? will be waiting for your response. Thanks.

    rohit anand singh

    • Hi Rohit,

      When you invest in ELSS, the minimum lockin is 3 year, You can redeem anytime after that.

      You can go other Axis Long term equity , Reliance Tax saver etc.

      You can invest online via their website or visit any mf agent

  180. Hi Vivek,

    I wold like to invest 10K to Mutual fund,please suggest me a balance investment plan with good return.

    i am planing to intrest this money for long term and for 15years.

    Cheers
    Deepak Nanda

    • Hi Deepak,

      For long term, you can consider following funds:

      Large cap – Franklin India Oppor. (G), UTI Equity Fund (G)
      Midcap / small cap – SBI Small & Midcap Fund (G) , UTI Mid Cap (G)
      Diversified – UTI MNC Fund (G), ICICI Prudential Exports and Other Services Fund (G)

  181. Hi Vivek,

    Thanks for your information.If i invest under ELSS scheme ( lock period is 3 yrs )
    1. Axis long term equity ( money invest 20k)
    2.Reliance tax saver. (20k)
    3.ICICI Pru Right Fund.(20K)

    If ” Axis long term equity (elss and open-ended) is not doing good” Can i switch the money to Reliance tax saver fund (ELSS and open-ended) with in the lock period ? it is possible to do ? Will this affect 80C ?

  182. Hello,
    I have just started my job last year and need help on how much and where to invest?
    For the first time, invested around 1.25 lacs in PPF alone but wish to diversify and invest to gain higher returns. Can spare about 3-4 k p.m.
    Your help is really needed!

    • Hi Bhavna,

      You can invest via Mutual funds. If you have exhausted your 80C limit, you can invest in Mutual funds other than ELSS.

      You can consider

      Large cap – Franklin India Oppor. (G), UTI Equity Fund (G)
      Midcap / small cap – SBI Small & Midcap Fund (G) , UTI Mid Cap (G)
      Diversified – UTI MNC Fund (G), ICICI Prudential Exports and Other Services Fund (G)
      ELSS – Axis Long term equity, Reliance Tax Saver

  183. Hi Vivek,

    I want to go with online SIP. I have already chosen some MFs.
    Can you pls guide as how to start with the purchasing.
    does it require to fill KYC first and submit it in the designated branches
    or what are the steps we should follow for online purchasing.

  184. I want to start Mutual Fund investment thru SIP for wealth creation after 10-15 years horizon.
    My net salary is 80k & currenlty running HL EMI of 32k, pls suggest for plan for selecting MF for growth in initial phase & fixed in later part of investment. Monthly plan is 5000/-

    • Hi Pravenn, You can consider following funds

      Large cap – Franklin India Oppor. (G), UTI Equity Fund (G)
      Midcap / small cap – SBI Small & Midcap Fund (G) , UTI Mid Cap (G)
      Diversified – UTI MNC Fund (G), ICICI Prudential Exports and Other Services Fund (G)

  185. Hi Vivek,

    I am planning to invest Rs. 10,000 (5,000 each for me and my wife) in ELSS through SIP and I am looking for longer term investment (almost 20 years). Can you please suggest some good fund and the procedure of investment?

    Along with that, can you please suggest any good scheme for children (for education etc.) as well?

  186. Hi Vivek,

    I am planning to start a SIP from April 2015, planning to have a SIP for 5 – 7 yrs (invest 12K).

    If you could please advise on MF’s under ELSS for Investments.

    I have been reading you Blog for quite sometime,
    1. Axixs Long Term Equity Fund (G) / 3K
    2. ICICI Pru Tax Plan (G) / 3K
    3. Franklin India Tax Gain Shield (G) / 3K
    4. SBI Magnum Tax Gain (G) / 3K

    I have a account with ICICI Direct, would appreciate your kind advise.

    Thank you!

    Shekhar

  187. Hi Vivek ,

    Thanks for such a informative post.

    I am working into IT and planning to invest around 8000 pm for tax saving and good returns perspective. I am okay for a long term perspective of 10-15 years. I am planning only for SIP and not one shot amount.

    Can you suggest me a break up of this amount 8000 on different ELSS schemes alongwith prioirty or any other alternatives options are also fine.

    Looking forward for your reply .

    Thanks
    Rishi

  188. Dear Vivek,

    I am new to MF . I dont know anything about it. Since I want to save tax through ELSS I am planning to invest in it. So please guide me to which one to buy. By reading this article , Axis Long Term Equity Fund (G) is better . But can I use SIP in this Fund or its a one time Investment?? Please clarify it. I am ready to invest around 50k !!! Thanks in Advance

    • Hi, Yes you can invest via SIP or lumpsum. But SIP is preferred.

      You can consider Axis Long term equity , Reliance TAx saver fund.

  189. Hi Sir,
    iam 25 yrs , working in central Gov. PSU. i want to invest 30k immedieatly and 7000 PM thereon. I want to keep the amount for 4-5 Yrs . Pls suggest any ELSS , MF or SIP . how to split my money .

  190. Hi Sir,

    Im new to the mutual funds investments. As a kick-start , I would like to invest from Rs. 2000 – 5000 for tax benefits. Please suggest a good ELSS fund. With your above suggestions, understood that these are at market risks. I would like to go with short term -3 year locking period. Kindly suggest.

    • Hi Deepa,

      All ELSS funds has lock-in period of 3 years. After that you can remain invested as long as you want or withdraw money.

      You can consider
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Franklin India Tax Shield (G)

  191. Hi Vivek,

    I wants to know if i invest say Rs 20000 in ICICI Prudential Export and Other Services Fund(equity fund), will it be recognize in tax saving and can i declare in my Investment declaration and what is the percentage applicable i.e 100 % of amount invested in this scheme can be counted as tax investment declaraation.

    • Hi Dhruv,

      ICICI Prudential Export and Other Services is Diversified Equity fund and NOT ELSS fund. So you cannot claim any tax deduction for investment in this scheme.

  192. I am planning to start investing in MF’s, take the ELSS (SIP) approach.
    I am planning to put some 10k every month for next 3 – 5 years (I have been following your blog).

    If you could please help/ advise on the following MF’s, (again I have been following your blog).

    1. Axixs Long Term Equity Find (G) – 2 K
    2. ICICI Pru Right Fund (G) – 2 K
    3. SBI Magnum Tax Gain (G) – 2 K
    4. Franklin India Tax Sheild (G) – 2 K

    I have some liabilities, hence I’ll not be able to invest or buy anything for next few yrs.

    Also, I have a dumb question, what if I continue with my SIP for next 3 -5 yrs, than stop and don’t; withdraw my money for next 5 yrs.
    Meaning only withdraw for my daughters education purpose, would there be benefits, would the money grow beyond the said tenure.

    I would appreciate your help/ advise.

    Thank you!
    Shekhar

    • Hi Shekhar, The funds selected are Ok. However, ICICI Pru Right Fund is close ended fund, so you should ignore it.

      You can continue your SIP for next 3 -5 yrs, then stop and don’t withdraw my money for next 5 yrs – the money will remain invested in the funds. yes the money will grow / decline beyond that time based on the market conditions.

  193. Thanks Vivek for being so helpful.
    I intend to invest around 60k in ELSS this year (before 31st March) – better late than never!
    I dont really need the money after 3 years and can keep it longer, provided its paying returns.
    Can you please share your opinion on how many products and which products I should split this 60k?
    My risk behaviour is Medium. So at least some of my funds should be Balanced.

    Awaiting your response as 31st March gets closer 🙂

    • Please note that risk profile for all ELSS funds would be more or less same as the underlying investment is 100% equity.

      You can split your investment in 3-4 ELSS funds
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Birla SL Tax Relief 96 (G
      Religare Invesco Tax Plan (G)
      Franklin India Tax Shield (G

  194. Hi Vivek,

    I am planning to start investing in MF’s, take the ELSS (SIP) approach.
    I am planning to put some 10k every month for next 3 – 5 years (I have been following your blog).

    If you could please help/ advise on the following MF’s, (again I have been following your blog).

    1. Axixs Long Term Equity Find (G) – 2 K
    2. ICICI Pru Right Fund (G) – 2 K
    3. SBI Magnum Tax Gain (G) – 2 K
    4. Franklin India Tax Sheild (G) – 2 K

    I have some liabilities, hence I’ll not be able to invest or buy anything for next few yrs.

    Also, I have a dumb question, what if I continue with my SIP for next 3 -5 yrs, than stop and don’t; withdraw my money for next 5 yrs.
    Meaning only withdraw for my daughters education purpose, would there be benefits, would the money grow beyond the said tenure.

    We would appreciate your help/ advise.

    Thank you!
    Shekhar

  195. I am 28 years old and heard of elss.i can invest Rs. 5000 pm.I n which elss fund i should invest so that i can get good corpus amount till i turn 45 years?

    • Hi Atul,

      You can consider investing in following ELSS funds :

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)

  196. Hi Vivek,

    Hope you are doing good. My salary package is 4.5L/annum. Last month i have started SIP for the following 2 funds
    1) Axis LT Equity Fund(G) – 3 years 3000rs/month
    2) ICICI Pru Focused BlueChip Eq Fund-Reg(G) – 1 year 1000rs/month

    Now, i am planning to invest on the following funds.
    1) SBI Long Term Advantage Fund – Series II – Regular Plan (G) – 3 year 1000rs/month
    2) Franklin India Smaller Companies Fund – Growth – 3 year 1000rs/month
    3) SBI Magnum MidCap Fund – Regular Plan – Growth – 3 year 1000rs/month
    4) UTI Mid Cap Fund – Growth – 3 year 1000rs/month

    For tax saving i have Axis LT Equity fund. But that will come only 36,000/annum. Shall i invest more money on that plan or i can go for some other ELSS tax saver plan. If yes, shall i go for Reliance tax saver?. Please suggest and guide me on this.

    • Hi ram,

      Reg 80Climit, your PF also counts in that. So factor that in as well. If you have balance limit in80C, you can consider further investment in ELSS.
      Reliance Tax Saver (ELSS) (G), Franklin India Tax Shield (G) are performing well.

      SBI Long Term Advantage Fund is also ELSS , so please factor that as well. This is new fund and do not have much history. it is better to go with the schemes having good track record.

  197. i am an existing MF investor n now planning to go for ELSS . i have checked few, but want to know about Axis Long term Equity Fund? my time horizon is 10 year. also want to know should i go for Direct plan or Regular growth plan ? does it make serious difference?
    Regards
    Vib

    • Axis Long term Equity Fund is one of the best performing ELSS funds, you can consider this fund.

      Normally the difference between regular plan and direct plan is approx 0.5% – 1% of corpus amount. e.g. If yu are investing rs 5000 per month (RS 60000 per year), the maximum different should be approx Rs 600/year.

      • What is a direct plan ?

        I am planning investments of about Rs. 100,000/- in the next few days…so, would appreciate reply soon.

        I plan to invest in Axis Long Term (G) and ICICI Prudential Tax Gain / Franklin India Tax Shield. Are these Okay ?

        How do I go about investing without the load of a broker’s commission ? I do not do banking via the internet. So, per force, the payment mode for the investments will be either by cheques or RTGS / NEFT.

        • Hi Nainish,

          Direct Plan are plans where no distributor is involved. You need to submit the forms directly to the mutual funds office or points of acceptance.
          Make sure that on form, you write “DIRECT” in broker code column.

          Basically, distributor gets some commission upfront & then per year (0.5 – 1%). If you invest in DIRECT Plan , you save on that cost.

          Regarding the funds, they are performing well.

  198. Hi,

    Could you suggest me which plan has low risk between Axis Long term equity Fund and Reliance tax saver?So that I could invest for tax saving?

    • Hi, As ELSS funds invests in Equities, they are riskier as compared to Bank FD etc.
      From a retail investor perspective, both should be treated as similar risks.

  199. Hi,
    I am new to mutual fund, I am planning to invest in mutual fund for tax saver? I want to know whether our principal amount will be safe or Is their any risk in the principal amount itself if the market falls or the company’s shares goes down?

    • As the ELSS / Tax Saving Mutual funds invests in Share market , the capital is also at risk.
      However, if you invest for long term & systematically , then based on the historic data, it tends to provide good returns.

      Though there is no guarantee.

  200. Hi Vivek,
    I a planning to invest Rs 3000/month in SIP IN AXIS LONG TERM EQUITY FUND how much amount will I be getting at the end of 10 years and I am planning this for tax exemption and I dont want to take risks so Could you please suggest me a scheme which has low risk in tax saver?

    • Hi Suresh, Al ELSS equity funds have market risk as they invest in Equities (Shares).
      if you want a risk free investment, then you can consider PPF, NSC, Tax Saving bank FD etc,

  201. Hi Vivek, Good day !! I am new to ELSS, but upon doing R & D with FD,PPF,ULIP,NSC i feel ELSS will be good option to go for Tax saving + Good returns when to above mentioned schemes.

    My age is 27.

    I can invest around 8000 PM, so thought investing on 4 funds 2000 each…

    Tenture will be – 15 yrs

    I have seen u all the posts about top performing funds.. i will start from April month onwards…

    If i ask you to tell top 4 funds to select for me based on my above plan, which you will be selecting for me?

    Regards,
    Sudhakar PR

    • Hi, You can consider following 4 funds
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      BNP Paribas Long Term Equity (G)
      Religare Invesco Tax Plan (G)

          • Thanks Vivek !!

            Below my portfolia wt i thought to proceed.

            Axis long term equity – 2000 – 5 yrs
            Reliance Tax Saver – 2000 – 7 Yrs
            BNP Paribas long term equity – 2000 -10 Yrs
            Religare Tax invesco Plan – 1000 -15 Yrs
            Franklin India Tax Shield – 1000 -15 Yrs

            Initially i thought of putting all for 15 yrs then i thought it would be good if we get money at certain periods will helpful.

            1. Let me know the 5 funds which i selected is fine or u want to suggest anyother fund apart from this 5?

            2. Is that amount which i chose is wise decision or any suggestion pls?

            3. Will that yrs selection like above will work or put all in 15 yrs?

            Kindly let me know ur thoughts pls.

  202. Sir, I have just invested Rs.1 Lac in ICICI Pru Wealth Builder II to get sec. 80C benefit.

    Please advise me ( with the goal of maximum possible long-term return ) where I can invest another Rs.50,000/- (specifying the mutual fund, or other scheme / plan ) so as to obtain full Rs.1.5 Lacs benefit u/s 80C

    Regards,

    Deep.

    • Hi Deep,

      You can consider investing in other ELSS fund – Axis Long term equity

      Regarding the ICICI Pru Wealth Builder II is ULIP plan and you will not be able to withdraw money before 5 years. If you surrender before 5 year, the money will be kept separately and will be paid after 5 years.

  203. Hi Vivek,
    I have recently started investment in mutual funds to diversify the investments, earlier I use to invest in the conventional schemes
    I am holding following 2 MFs
    SBI Pharma Fund – Regular Plan – Growth – @ Rs2000/month
    BSL Frontline Equity Fund -Growth – @ Rs2000/month

    I am thinking to invest in ELSS funds as well from the coming financial cycle 2015-16. Please suggest it would be a wiser option if I would continue with the above MFs along with ELSS funds

    Thanks,
    Sankalp

    • You can consider following ELSS funds, it will give you 80C deduction as well,.

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Religare Invesco Tax Plan (G)

      Your current funds are performing well. Just that Pharma fund is sector specific fund and carries higher risk.

  204. Hi,

    I am planning to invest in the following mutul funds through SIP.

    SBI Blue Chip Fund (G) – 5000
    Canara Robeco Emerging Equities (G) – 2500.

    Please advice

    Thanks
    Manjula

  205. Hi Vivek,

    Sorry about the emotional angle, but then at the age of 37, I am kind of starting fresh.

    I have a Job, but then need to plan for a secured life for family, daughters education.

    My priority is my daughters education, by no means want her to live a compromised life.
    Further I need to plan for a permanent Nest/ Shelter for us.

    I have 3 LIC’s premium together is Rs 11700/- I also invest PPF (60k – 70k), every financial year, merely for tax reasons.

    I am planning to start investing in MF’s, take the ELSS (SIP) approach.
    I am planning to put some 10k every month for next 3 – 5 years (I have been following your blog).

    If you could please help/ advise on the following MF’s, (again I have been following your blog).

    1. Axixs Long Term Equity Find (G) – 2 K
    2. ICICI Pru Right Fund (G) – 2 K
    3. SBI Magnum Tax Gain (G) – 2 K
    4. Franklin India Tax Sheild (G) – 2 K

    I have some liabilities, hence I’ll not be able to invest or buy anything for next few yrs.

    However, my primary objective is to secure my daughters education, further see if I can get home for us.

    Also, I have a dumb question, what if I continue with my SIP for next 3 -5 yrs, than stop and don’t; withdraw my money for next 5 yrs.
    Meaning only withdraw for my daughters education purpose, would there be benefits, would the money grow beyond the said tenure.

    We would appreciate your help/ advise.

    Thank you!
    Shekhar

  206. Dear Vivek,

    I want to invest 3.5 lakh ,
    Will you pls suggest me the best investment plans, so that i can get good returns in 3 years.

  207. Hi Vivek,

    Sorry about the emotional angle, but then at the age of 37, I am kind of starting fresh.

    I have a Job, but then need to plan for a secured life for family, daughters education.

    My priority is my daughters education, by no means want her to live a compromised life.
    Further I need to plan for a permanent Nest/ Shelter for us.

    I have 3 LIC’s premium together is Rs 11700/- I also invest PPF (60k – 70k), every financial year, merely for tax reasons.

    I am planning to start investing in MF’s, take the ELSS (SIP) approach.
    I am planning to put some 10k every month for next 3 – 5 years (I have been following your blog). Planning to start from April 2015, covered for this financial year.

    If you could please help/ advise on the following MF’s, (again I have been following your blog).

    1. Axixs Long Term Equity Find (G) – 2 K
    2. ICICI Pru Right Fund (G) – 2 K
    3. SBI Magnum Tax Gain (G) – 2 K
    4. Franklin India Tax Sheild (G) – 2 K

    I have some liabilities (family legacy), hence I’ll not be able to invest or buy anything big for next few yrs.

    However, my primary objective is to secure my daughters education, further see if I can get home for us.

    Also, I have a dumb question, what if I continue with my SIP for next 3 -5 yrs, than stop and don’t; withdraw my money for further 5 – 10 yrs. Meaning only withdraw for my daughters education purpose, would there be benefits, would the money grow beyond the said tenure, would it be sufficient for her to graduate from good institutes.

    We would appreciate your help/ advise.

    Thank you!
    Shekhar

    • Hi Shekhar,

      First of all , it is good thing that you are planning your finances for your family’s future.

      Regarding ELSS, you can consider following ELSS funds :

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Franklin India Tax Shield (G
      Religare Invesco Tax Plan (G)

      If you continue investing for next 3-5 years and then stop, your balance will be remain invested and may increase/decrease depending on market conditions. However, the corpus may be lower as the investment is only done for 5 years.

      If you invest 8000 per month, you would have invested Rs 4.8 lakhs over next 5 years.

          • Hi Vivek,

            Sorry coming back, you just made me realize that, 4. 8 L would not help me with my goals.

            I am 37 and looking forward to accumulate somewhere near 50 L, by the age of 50.

            My daughter would just finish her SSC, by any chance you can advise as to how can I achieve this financial goal (may be amount I should really try and SIP).

            Also, a personal request, by any chance you would be available for a call.

            Appreciate your help. Thank you!

            Shekhar

          • Hi Vivek,

            Sorry, coming back to you again.

            I am planning to invest some Rs 15000/- in SIP for next 5 – 7 yrs.

            If you could please advise as to how do I go about the distribution.

            Axixs Long Term Equity Fund (G) / Rs 4000/-
            Reliance Tax Saver (ELSS) (G) / Rs 4000/-
            Franklin India Tax Shield (G) / Rs 4000/-
            Religare Invesco Tax Plan (G) / Rs 3000/-

            Appreciate your help. Thank you!

            Shekhar

          • Hi Shekhar,

            Is there a particular reason, why you want to invest all Rs 15000 in ELSS funds?

            You can get benefit u/s80C only upto Rs 150000. The limit also includes your PF deduction.

          • I am covered for tax (School Tuition Fees, LIC & PPF).

            I have no plans to buy a property now, don’t want to get into any liabilities, until I have secure our future.
            Hence, more keen to accumulate money as much as I can in next 5 – 7 yrs (primarily for daughters reason).

            I can invest 15000 – 20000 per month (rather want to, move fast towards education goal; willing to take a moderate risk).
            Feel free to advise, suggest on the investment, will abide/ respect you notion.

            I also got my demat (ICICI Direct) account done now. I am a layman to the entire Investment, MF, ELSS etc.
            Further to your advise I’ll need to seek guidance as to how do I go about procedure/ technicalities.

            Thank you for being so prompt, we appreciate your good work…helping me my family with our good tomorrow.

            Shekhar

          • Hi Shekhar,

            You can invest in Mutual fund without DMAT account.
            1)You just need to get your KYC done and then submit MF investment form. You can take help from a Mutual fund agent or your bank for initial investment. They will help you with KYC and initial form filing.

            You can consider following funds:

            UTI Equity Fund (G)
            Franklin India Oppor. (G)

            Can Robeco Emerg-Equities (G)
            SBI Small & Midcap Fund (G)
            Reliance Small Cap Fund (G)

            UTI MNC Fund (G)
            Franklin High Growth Cos (G)

            See how to invest in Mutual funds
            https://wealth18.com/how-to-invest-in-mutual-funds-in-india-online-offline-options/

  208. Hi,

    My age is 30 Years. I have below portfolio.

    Monthly Income : 40,000

    LIC Jeevan Saral : 48000 Per Annum

    PPF : 50000 Per Annum

    NPS : 84000 Per Annum

    Aviva Term Plan : 50,00,000

    Medical : 100% covered by our office.

    i have following questions.

    1. I recently married and i want to build a corpus for our children. i want to start SIP of 2k-4k. Please suggest best suitable funds. Should i go for only ELSS or both ELSS and Large Cap both. i want tax benefis also while investing.

    2. i started LIC jeevan saral in 2010 and already paid 6 installments. should i continue till 10 years to get back my money. as i checked they will pay me 2,20,000 instead of 3,00,000 i have paid if i surrender today. if i surrender i will cost me a loss of 80k

    • Hi Gagan,

      As the limit for 80C is Rs 1.5 lakhs, you should exhaust it with the existing investments.
      For additional investments, you can consider other Equity funds:

      UTI Equity Fund (G)
      Can Robeco Emerg-Equities (G)
      SBI Small & Midcap Fund (G)
      Birla Sun Life MNC Fund (G)

      2) It is now better to remain invested till maturity. otherwise you will unnecessary bear the surrender charges.

  209. Hi Vivek,

    I want to invest Rs 150000 in ELSS in order to save tax for the financial year 2014-2015. As I have not done any investment so far, I have to invest the lump-sum amount, So please advise soon what to do? & where to invest?

    Your immediate response is highly appreciated. . .

    Thanks

    • You can select 3 funds from the list above and invest.
      If possible, try to invest on different days so that you can get investment in multiple price limits.

  210. Hi Vivek,

    I am 27 years old earning around 50k per month.
    Below are the SIPs in which I am investing since last 1.5 years. Please suggest should I continue with these or not?
    Also, I want to start investing 4000 more every month in some tax saver SIP. Which would be most suitable for me?

    BSL Gold Fund – Growth – Direct – 2000 per month
    BSL Frontline equity Fund – Growth – 1000 per month
    HDFC Top 200 Fund – Growth – 1000 per month

    I am looking for gain in next 3-4 years so advise accordingly.

  211. Hello Vivek,

    This is one of the most informative website that I came across. Also Kudos to you for individually replying to each of them. My aplogies if some of my below queries have been already answered before. I tried reading almost each of them yet I did not find a reply hence seek your advise
    1. Are ELSS as instruments a flavour for investing in the current scenario or can I safely treat them as tools to systematically invest and see growth in my savings over a long term? I asked this as some time back MFs were there and then ULIPs.
    2. I have an investment horizon of 15-20 years and want to start with a SIP of Rs 5000/- invested in a couple of funds to spread the risk. Can this SIP amount be increased at a later date? Can I also exit these funds and shift the investment in other funds that are better performing.
    3. Based on the amount invested i.e. in my case Rs 60000/- does the entire amount get invested to purchase of NAVs or some amount is deducted towards fund management/admin charges etc? In case there is can you please explain the working for the same?
    4. While claiming a tax benefit is that on the amount that is invested within a financial year or the aggregate amount?
    5. Are there any entry or exit loads?
    6. At the time of exit or maturity is the total amount (principal + return) tax deductible?

    Thanks in anticipation of your reply and please keep the good work.

    Regards
    Jaideep

    • 1. ELSS are a category of Mutual funds specifically for tax saving. it is a tool where you can systematically invest and see growth in savings over a long term. You can use ELSS if your 80C limit is not exhausted.
      Otherwise you can also consider other category of Equity mutual funds – Largecap, micap, diversified etc

      2. If your investment horizon is long term, then you should consider Equity mutual funds – Largecap, micap, diversified, ELSS etc
      You can start new SIPs , increase amount of existing SIP etc. You can exit the funds or redeem it, just check the exit fees which depends on time & category of funds. For e.g. some funds charge 1% if you exit within 1 year etc.

      3.Entire fund will be invested as there is no entry load now. However, all the expenses of MF company is already factored in their NAV.

      4. U/S 80C, you can claim tax benefit for the amount invested in ELSS in that financial year. There are no tax deductions available for other categories of MF. However, Long term capital gain received from Equity funds are not taxable (if sold after 1 year)
      5. There are no entry load now. there is no exit load for ELSS. For other funds, Exit load will depend on fund category & time horizon.
      6. At time of redemption of ELSS funds after 3 years, the amount received is not taxable. There is no maturity in ELSS funds. There is a lockin for 3 years, however you can continue or remain investment for many years after that as well.

      Hope this clarifies.

  212. Dear vivekanand
    Iwant to invest 3000 pm for my children future for long term of about 15 yrs. Kindly suggest which elss will be better for such llong period.

    • There are no additional costs involved. However,every fund has a expense ratio which varies from 0.50% to 2.5% which includes all the charges & costs involved for MF companies. this is not charged separately and reflected in NAV.

  213. Hi Vivek,

    I am planning to invest about Rs.120000 in ELSS to save tax. Can you please clarify the following:

    1) I am looking at Axis Long Term Equity (G) and Reliance Tax Saver (G). Can you suggest me an appropriate split of 120000 in which i should invest in these funds? Should i also look at any other fund or are these two sufficient?

    2) I have not made any declarations for the FY 2014-15 and because of which there has been a considerable tax deducation (around 40000) from my pay. So i am planning to make this 120000 investment before March 31st,2015 and file IT Returns so that i will get a refund. This means i must make a lumpsum investment. I would like to know is this a better strategy or should i make SIP investments considering that market is high now and with SIP my average cost price per unit falls in the long run.

    3) Should i make this investment online or visit the bank and do the transaction? How do i ensure that there are no agents/middlemen in this process?

    • 1.You can split the amount into
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G
      ICICI Pru Tax Plan (G)

      2. Ideally SIP is better strategy, but in your case, you have no option but to invest lumpsum investment before 31-Mar-2015. May be for next year (2015-2016) you can invest via SIP from April 2015.

      3. If you want to invest in DIRECT Plan, make sure you write that in Plan name as well as Broker code field in the form. You can invest either via Mutual funds online website or visiting the Mutual fund office / submitting form at their authorised centres. Please note that Banks are agents of MF, so they may not accept form with DIRECT written on it.

  214. I wish to invest in ELSS scheme under tax saving. Out of top three schemes listed in above article which one is best? I wish to invest for 3 years with 10,000 . I am investing for the first time in mutual funds so pls suggest me the time frame, amount and best scheme with lower risks.
    Thanks

    • Hi Ankit, ELSS funds is a Equity based scheme. So you should normally have long term view in mind. it may give good returns in 3 years, but if not you should be able to hold it longer. Normally Equity should have a time horizon of 7-10 years and it beats the returns from other asset class.

      You can consider investing in Axis Long term Equity fund.

      • Thanks for your reply. I wish to know that is it the right time to invest in equity shares as the merket is at its peak. Also publish an article on commodity funds like gold or crude oil etc.
        Thanks

      • thanks for your valuable comments. I wish to know that whether this is the right time to invest in the market or not. Both sensex and nifty are at higher values. pls suggest the right time for a new invester like me.
        Thanks & Regards.

        • Hi Ankit, it is always difficult to know the right time to invest.
          So it is always better to invest small sums of money over a period of time and invest for long term.

          The best option is to invest via Equity mutual funds for long term using SIP mode & Growth option.

      • Hi Vivek,

        I am planning to invest 4000 in ELSS through SIP for tax benefits and have been advised to spend as following:

        Axis long term equity fund-2000
        Reliance tax saver-1000
        Franklin India Taxshield-1000

        I had a plan of investing for 5years but have been advised to invest for 3years.
        As i am being told that if the fund doesn’t perform well in 3yrs i get an option for extending the tenure.

        Could you please suggest on this.
        Should i spend for 3yrs and later extend the tenure based on the market?
        or
        should i spend for a long period of time as mentioned in your article?

        could you also help me with the fund selection and money to be invested on each fund?

        • The funds selected are performing well. By Investing Rs 4000 per month, you will invest Rs 48000 in an year & claim deducted u/s 80C.

          While submitting SIP form, you can choose any duration 12 months or any period. That duration is for SIP investment. There is no restriction if you stop paying before that period.

          Any investment done in ELSS, will have lock in for 3 years. However, you can remain invested after that as well.

          Note that SIP duration & ELSS lock-in period is two different things.

  215. Hello Vivek,

    I am very new to ELSS and thinkining to invenst 2500.00 monthly into the ELSS programe . I can you please give me some good ELSS scheme name to invest . Also I would like to confirm some of my doubt as below :

    1. ELSS will be 3 Year Locking period .Suppose in 3rd year my ELSS is not performing well , can i extend it for more years.
    2. In ELSS i need to pay the money only the first year rand can show the ammount into the same Fiscle year Tax exsumption ??
    3. Can you please give me some breakup for the investment. Monthly 2500.(can be devided)

    Thanks
    Amber

    • 1) 3 year lockin period only mean that you cannot sell within 3 years. You can keep the investment as long as you want.

      2) No, Like Other investments, You can claim the benefit only in the year of investment.

      3) You can consider following ELSS funds :

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G)
      Franklin India Tax Shield (G
      Religare Invesco Tax Plan (G)

  216. Hello Vivek:

    Thanks for valuable information. A small question I have roughly 50000 which I want to invest in ELSS for tax savingwould it be wise to invest in ELSS in one go or PPF would be much wiser.

    thanks
    Amir

    • Both are different options. PPF is safe fixed income while ELSS is bit risky with potential for higher returns in long term.

    • Growth option is better to accumulate wealth.

      Some of the best performing ELSS are:
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G
      ICICI Pru Tax Plan (G)

  217. I want to invest 25000 today. Please suggest shall i divide the amount in ELSS and PPF? I have already made 40k of investment in LIC (old investments, no new, not doing any more). If i have to divide the amount into ELSS and PPF, please guide for the amount distribution – i mean for a good expected growth how much one should invest in ELSS for how much period? you always recommend 5 yrs which is fine with me.

    I have invested in EQUITY / SBI Magnum Tax Gain Scheme – Regular Plan – Growth. Shall i put more into this? Or do you recommend other better options?

    Looking forward to your guidance.

    Thanks
    Ravi

    • Hi Ravi,
      depending on your risk appetite,you should allocate the amount. to start with you can do 50:50 split, going forward you can increase allocation to ELSS.

      You can consider following ELSS:

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G

  218. Hi,

    I am just 24 years old and unmarried. I am working in a private sector company and my monthly income is approx of Rs 50000 Per Month. I am planning to investments in Mutual Funds through SIP only.

    Can u suggest which fund is better for Tax Saving Purpose .

    And also suggest, apart the Tax Saving Funds, whether i should opt for Large Cap or Mid Cap fund.

    Pls also note that i can invest up to Rs 8000-10000 per months or should i increase the investment amount. As such i have not made any target amount that is required in future, pls suggest ???

    Apart this please also suggest that to making diversified portfolio , should i start Fixed Income securities like FD & RD to mitigate the risk which could be arise due to Equity Bases Investment .

    • Hi Ritesh,

      To make a diversified portfolio, you need to invest in Equities, Fixed income, gold etc….

      First of all, you need to make sure that 80C deduction limit of Rs 1.5 lakhs is utilised.

      Reg ELSS, you can consider investing in

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G]
      ICICI Pru Tax Plan (G)

      Regarding other funds, you can consider:
      UTI Opportunities Fund (G)
      Reliance Small Cap Fund (G)
      UTI Mid Cap (G)
      ICICI Pru Value Discovery Fund (G)
      Reliance Equity Oppor – RP (G)

      SBI Dynamic Bond Fund (G)
      ICICI Pru Corporate Bond (G)
      Birla Sun Life GSec – LTF (G)

      HDFC Gold Fund (G)

  219. sir i want to know if I invest 25000/- in any MF thru agent rather than direct online purchase then how much amount (Apprx.) will i loose in 3 years as agent commision deducted from NAV. Agent already giving me 1% commision in begining.what would you suggest.

    • Depending on the MF scheme, the agents commission are 0.40% – 1% per annum in normal schemes and 3-4% in ELSS schemes.

  220. Hi Vivek,
    You are really doing a fabulous job. Keep up your great work. After going thru your post, which was so easy to clear to follow, I decided to invest in ELSS.
    I have a quick question. What if I invest my money in one of the ELSS portfolio for 3 years (as that’s the minimum) and after 3 years, unfortunately the market shows down and I dont want to withdraw that money, Could I extend my time period to 1 or few more years? And withdraw the money once everything look good?

    Your reply would be highly appreciated.
    Thanks

    • Hi Sudhir, It is not necessary to withdraw money after 3 years. You can keep the money invested as long as you want …..

  221. Hi Vivek,

    I am planning to invest Rs 3000 approximately in ELSS SIP with a locking period of 3 years, will I get a guaranteed return more than any banks FD interest rate after 3 years for the amount invested.If yes how much minimum % I can expect to get at the end of 3 years I got this doubt because currently the market is at all time high till date I guess. Please advise.

    Thanks

    • Hi Ashok,

      There is no guarantee that ELSS will give more returns bank Bank FD. As the ELSS are Equity based funds, there returns will be dependent on the market conditions. It may be more or less than Bank FD interest.

      If you are looking for risk free return, you should invest in Tax Saving FD.

    • ELSS funds are eligible to claim deduction u/s80C (under overall 80C limit of Rs 1.5 lakhs)
      If you sell then (after 3 years lockin),any capital gain will be tax free.

  222. Vivek..Hi

    I plan to invest in the following funds as SIP of Rs 1500 per month in each fund .Please advise if my choice is fine

    Franklin Build India Fund (G)
    Axis Long term equity fund (G)
    Birla Sunlife top 100 (G)
    relaince Tax Saver (ELSS) G
    Franklin High Growth companies (G)

    • Franklin Build India is a Thematic Infrastructure fund ( has high risk) – though it is performing well now
      Other funds are performing well also.

      Regarding Axis Long term equity & Reliance Tax saver – these are ELSS funds eligible for deduction u/s 80C. If you have already exhausted 80c limit, then you can consider investing in other funds.If not, then you can invest in ELSS funds and claim deduction.

  223. Hi Vivek,

    I want to know in which mode [online or via broker], the tax saving MFs can be taken.

    What are the prons and cons for both modes [online vs broker].

    Regards,
    Krishna

  224. Vivek

    Wanted to know that are all profits exempt from Tax in ELSS after lockin of 3 years is over? As in if today’s ELSS investment I am redeeming after 10 years, is the entire sale proceed for me to keep and total profit I have made is exempt from an kind of income tax?

    Also, what are the taxation norms for non ELSS mutual funds?

  225. Dear Vivek,

    I have invested an amount of 30K last year in ELSS – IDBI Equity Advantage Fund – Regular Plan – Growth. I am impressed with the returns till date. From this year onwards, I would like to invest in SIP mode, an amount of 5K per month. Could you please suggest the break up of the amount and EELS Schemes to invest.

    Thanks
    Upendra

  226. hi
    i want to start investing in elss with a low amount of 2000/ p.m. please suggest me what to do
    should i go with one plan or more than one please help
    and suggest the plan also want to invest for a long time

  227. Vivek, could you please clarify the calculation of ELSS funds returns. If the absolute return is quoted as 185% after 5 years, does it mean that I get 18500/- for the money 10000/- which I have invested, is it I got a benefit of 8500/- or 18500/-. I mean is that I would have 28500/- amount with me now.
    I am little confused with the term absolute returns and normal returns…. or does these both have difference of one being calculated in money and other in %, is this is the only difference between the both.

    • Hi, If the absolute returns is shown as 185%, it means that on an Investment of 10000, you get an additional 18500, so a total of 28500.

      Normally, there are 2 type of returns shown – one is absolute return and another is annualized return.

      Annualised return show the average return per annum. & Absolute return shows the total return over the period.

  228. Hi Sir,

    I am planning to invest 1 lakh in this financial year for tax benefits. As I dont want to get interests, I found ELSS suitable for me. I dont know how this works actually.. From my reading I learn the below things, please correct if I am wrong:
    – I can split my 1 lakh to two ELSS plans in ICICI and Reliance.
    – My amounts will be locked there for 3 years.
    – I get my money only after 3 years with any additional return. There will not be any interests paid.
    – I dont have to pay taxes for additional returns.

    Please correct me if I am wrong; and also give me your kind suggestions if there are any other best alternative than ELSS which dont play with interests.

    Thank you

    • Hi Nissar,

      ELSS invests in Equity (shares) so there is always risk that stock market is not good in short term. So even if the lock in period is 3 years, you should be prepared to wait for long term if the market is not well at that time.

      So in ELSS , you will not get interest but the NAV will change & you will have long term capital gain/loss. The returns are tax free.

      You can split the amount into the following
      Axis long term equity (Growth)
      Reliance Tax saver (Growth)
      Icici pru tax plan (Growth)

      For your lumpsum investment in this year, try to invest smaller amounts in different weeks, so that you can diversify the price.

      For next year, rather than doing lumpsum investment in Feb or march, you should start investing monthly from April via SIP option.

  229. Dear Sir

    Please suggest a portfolio spread of 5 different funds that I can invest @ Rs 2000 per fund totaling to Rs 10,000 which will give the best returns

  230. hello vivek,
    to save tax (80C section) for current financial year i need to save 90K, i planned to go for ELSS, insted of SIP i prefer to invest 30K+20K+20K+20K in different ELSS frunds, Please suggest me suitable ELSS funds and otions

    • You can consider investing in

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G
      ICICI Pru Tax Plan (G)
      Franklin India Tax Shield (G

      For this may be you can plan to invest in smaller amounts till March 2015.

      You can invest RS 10000 per week for 8 weeks so that investment time is diversified.

  231. Hi,

    My Age is 24, am interested to invest 2500 monthly in ELSS.Am already investing 2500 to ICICI pru life stage 2 ULIP plan 20PT,yearly 25000(7yrs PPT-20PT) to HDFC classic assure (endowment),500 each to relaince small cap and reliance growth fund.

    please better place to invest and to reap good benefit.

    thanks
    Velan

    • Hi Velan,

      Re ELSS, you can consider investing in
      Axis Long term Equity
      Reliance TAx Saver

      ULIP normally has higher charges and also do not provide adequate insurance.

  232. sir, i wish to invest Rs 100000/- now for the purpose of tax savings under 80c
    kindly help me
    my details are as under
    age 56yrs
    teacher by profession and a beginner (in this line of investment in ELSS) but i have gone through articles on ELSS but got more confused
    wish to keep my invest ment for 4-5 yrs

    i wish to know
    name of the companies to invest
    whether to invest in different cos or on co

    i wish to have moderate returns with more emphasis on safety
    thanks in anticipation
    seema gupta
    delhi

    • Hi, safety of investment is more important, I sugest you should go for fixed rate investments under 80C. like Tax saver FD or NSC etc

      You can consider putting small amount in ELSS. But for short term (3-4 years) it is risky. If you want to invest in ELSS you can consider:

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G

    • CRISIL has ranked the Mutual fund schemes. “Direct plan is just an option for particular scheme. The nature of risk or ranking doesnot change whether you are investing in normal or Direct plan.

      By investing in Direct plan, you will save on the distribution charges paid by MF to agents. It will be reflected in higher NAV of direct plans. Normally the difference will be approx 0.25% to 1%

  233. Hi Vivek.

    I have invested certain amount in ELSS – “IDBI Equity Advantage Fund – Regular Plan – Growth” an year back, and I am impressed with the returns. I did it in lumpsum amount. Now I would like to invest an amount of 5K/month using SIP route. I would appreciate if you could please suggest plans. Investment is for good returns and tax savings. Looking forward from you.
    Thanks

    • Hi Upendra,

      You can consider investment in following ELSS funds:

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G
      ICICI Pru Tax Plan (G)

  234. Hi Vivek,

    I am 31 years old & self-employed professional & makes around 50 lac pa.I’m planning to invest 50k pm through SIP in following ELSS mutual funds for tax saving as well as growth purpose for 10-15 years.

    Here is the list of ELSS MF that I’ve filtered after your recommendations as of now:

    1. Axis long term equity fund (G) – 10000
    2. Reliance Tax Saver (ELSS) (G) – 8000
    3. HDFC Long term advantage (G)- 8000
    4. HDFC top 200 Fud (G) – 8000

    I’m still looking for another 2 ELSS growth fund to put in another 16k (8000ea/). Can you advise, which other 2 can i invest into?

    I’ve been blessed with a baby girl lately & want to make sure that I plan about her future expenses (education, marriage, well-off life). Also I already have 30 lac invested in FD for a period of 24 months, which will mature in the 4th quarter of this year.

    Just to add, I’m a beginner & have no idea about market. Would you advise to take help from financial advisor or dealing direct considering all these mutual funds will have lock in period of 3 years, once I invest. I mean I will just have to make sure ECS run through my bank on above funds for 3 years & then can check, how has those fared in due time, since I’ll not be able to switch for 3 period of 3 years.

    Lastly, what you do estimate will be my corpus at the end of the 15 years by investing 50k monthly at the average rate markets has given in last 10-15 years?

    Thanks in advance
    Mike

    • 1) HDFC top 200 Fud (G) is not ELSS Fund. Other ELSS fund you can consider are:
      Franklin India Tax Shield (G
      SBI Magnum Tax Gain (G)

      2) You are right. ELSS funds have a lockin period of 3 years. But you should have a longer horizon in mind as 3 years is short for Equity based investments. There is a possibility that market is volatile in short term., but generally over longer term it give better results.

      3) If you invest Rs 50000 monthly for 15 years, then your corpus may be approx Rs 2.5 crore ( assuming 12% CAGR)

  235. Hi,

    I wish to invest Rs. 10,000 lumpsum (& not via SIP) in tax saving ELSS for this year. Which ELSS would you suggest I should buy?

    Thanks & Best Regards,
    Pradhan

  236. I am new in ELSS fund trading, but I found this option is available under Icicidirect.com
    I want to know the what are brokerage terms or ELSS buy or sell fees to get this funds.

    • Hi Rahul, You can invest in ELSS funds through ICICIdirect as well. They charge Rs 100 as transaction charges for lumpsum investments.
      For SIP, they charge Rs 30 or 1.5% which ever is lower.

      Alternatively, you can invest directly to the Mutual fund house and no charge will be applicable.

  237. Hi vivek,
    I have the plan to invest lumpsum of 80k in the following order for tax benefits (2014-2015).
    Reliance tax saver G -30 k for 10 years
    Axis bank long term equity G – 30 k for 10 years icici pru tax G – 20k for 10 years.

    The above same order I ve the plan to invest through sip mode from March 2015 onwards.
    I need your valuable corrections and suggestions.

    • Hi Sundar, these funds are good ELSS funds.

      While for this year, you can invest in lumpsum and it is better that from April 2015, you invest via SIP option.

      Even for lumpsum this year, you can try to invest in Feb & March in different weeks / days.

  238. Hello Sir:

    I have a sum of Rs. 1,50,000 that I would like to maximize instead of just letting it sit idle in the bank savings account. I have an ICICI ULIP plan plus LIC and these two take care of tax saving. Kindly suggest me where I should invest this amount. I was thinking of an ELSS option, of investing in a number of funds. Kindly list the ones I should invest in… Or even any other kind of investments I could maximize the growth.

    Thanks…
    Alex

    • Hi Alex,

      1) What is your time horizon for this investment? Can you keep it invested for long term ?
      2) Which ICICI ULIP have you invested in . How much is premium, sum assured, duration, year of investment & maturity
      3) Which LIC policy have you invested in . How much is premium, sum assured, duration, year of investment & maturity

      I am asking about ULIP & LIC as normally insurance policies donot provide good returns and also not enough life insurance.

  239. Hi Vivek,

    Thank you for all your valuable time and timely service and responses, given to us. I`m truly grateful.

    In the last 3 years, (2012, 2013 and 2014), for the TAX benefit, i have invested, 50K for each year in SBI MF (believe its in SBI MAGNUM). This year i have invested 1.5 lacs in L&T MF and HDFC MF respectively, both for TAX benefits. None of the above were SIP investments though. These were direct ONE TIME payments.

    My questions are;

    Should i roll over on maturity and continue with SBI MF? Is it possible to transfer funds from one MF to another? How do i do it?

    Secondly, is L&T and HDFC MF safe bets? Or is there nothing Safe in MF`s?

    Had i read your article on MF a few days earlier, i would have definitely went ahead with AXIS MF alone, as i guess its the leading MF in the country.

    Your help is greatly appreciated.

    Secondly, any suggestions, tips or tricks, are always welcome.

    much thanks and kind regards,
    Jovy

    • Hi Jovy,

      1) There is no roll-over required. You are free to sell the ELSS funds after 3 years. It is not possible to transfer from one mutual fund to another. However, you can sell one MF and then invest in another MF.

      2) ELSS MF invests in equities/ shares. So the returns are impacted by share market. However, as the fund selection is done by experts, you can professional expertise . So normally it is better to invest via MF rather than direct purchase of shares.
      Also the risk is diversified as for smaller amount you are investing in large number of companies.

      Are you investing in HDFC Tax Saver & L&T Tax advantange fund? You can switch to following funds:

      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G
      ICICI Pru Tax Plan (G)

  240. Hi Vivek,

    I want to invest in Reliance tax in lump sum amount. Whether lump sum investment in the above top 2 funds are as good as through SIP.

    Thanks

    • Hi Amit,

      Irrespective of the fund scheme, the SIP option is more to invest at multiple levels and systematically every month. The quality of fund remains the same.

  241. Hi Vivek,

    Greetings for the day!!!

    I am 32 year old and working with a automobile company. My monthly salary is Rs.60000/-
    My investment & Insurance portfolio is as given below:

    INSURANCE:
    1. Rs.39200 PA for Life Insurance(HDFC Term Insurance Policy 7500000/-, BSLI Term Insurance 2500000/- & LIC Money Back Policy 260000/-)
    2. Rs.10500 PA for Health Insurance (Cover of Rs. 600000/- for Self & Family through Apollo Munich & IFFCO TOKIO)

    INVESTMENT:
    1. SIP in UTI Equity Fund Rs.1500/-PM
    2. SIP in UTI Opportunity Fund Rs.1500/-PM
    3. SIP in UTI Mid Cap Fund Rs.1500/-PM
    4. PPF contribution of Rs.3500/- PM
    5. EPF Contribution Rs.36000/-PA

    In addition, I am repaying Rs.8500/-PM against CAR Loan & Rs.5500/-PM against loan taken to buy a plot.

    Now my Questions are:
    >Should I make changes in my investment plan? Is investing in PPF a good option as compare to ELSS ?
    >I want to invest Rs.3000/-PM in ELSS, Please suggest some good schemes for time horizon 15 years.
    >I want to take a Land in next 2-3 years, for which I would require 4-5lakhs for Initial Payment. Please suggest investment options to achieve this goal.

    Thanks & regards,
    Yogesh

    • Hi Yogesh,

      1) Life Insurance – how much premium are you paying individually in each life insurance policy.
      2) Health Insurance – how much premium are you paying individually in each life insurance policy.

      3) Regarding investments in mutual funds, these funds are good. However, you are investing only Rs 4500 per month. If possible, you can increase the investment amount.
      Regarding ELSS, you can consider Axis Long term equity & Reliance Tax saver fund

      4) You cannot compare PPF with ELSS. PPF is long term (15 year) product with fixed interest while returns from ELSS is not guaranteed.

      5) if you need money in next 2-3 years, you should consider investing in fixed interest product like Fixed deposit, Recurring deposit etc. For that you need to save approx. 12000 per month in a Recurring deposit.

  242. Hi Vivek,

    For this financial Year, 2015-16, I would like to take Tax Saving ELSS funds. I understand there is a lock-in period of 3 Years. If market is not performing well, I’ll leave it until I get a decent value as we have option in open ended scheme.
    Planning to invest through SIP around 6K every month. Could you please suggest me a portfolio to distribute my funds.

    • Hi Uday,

      You can consider investing in following ELSS funds
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G
      ICICI Pru Tax Plan (G)

  243. Hi, I want to invest In Axis long term Equity fund but when i went to online axisbank mutual fund site, it was mentioned Axis Long Term Equity Fund Direct Growth Growth whose nav value was 31.67 , please tell as i want to invest in growth plan and direct payment mode what should i opt for as when i choosed Growth option it was showing broker code and i dont want to give broker charges as i am applying direct.

    • Hi Dhruv,

      Once you select the Axis Long Term Equity Fund Direct Growth Growth, Under the Broker detaisl column – “DIRECT” will be ticket automatically, and you cannot change it. Under Direct option, there will be no broker code.

  244. Hi Vivek,

    I am working in IT and my age is 27. I am planning to invest 10000 pm through SIP in the following ELSS mutual funds. I am planning to invest in elss to save sax and I know that it comes with 3 year lock in.
    1. Axis long term equity direct plan – growth – 5000 pm
    2. Reliance tax saver fund direct plan – growth – 5000 pm

    I am planning to invest from feb 2015. Please suggest if I should invest in these funds or should I consider other funds.
    Any extra suggestions are welcome. Thanks in advance.

      • Hi Vivek,

        I was also thinking if I should split the 10000 amount in 2 funds mentioned above or 3-4 funds. Please suggest. If I should split into 3-4 funds then please suggest the remaining funds.
        I read all your post. You are doing a great job.
        Thanks in advance.

  245. Dear Vivek,

    Good to see you putting in your time and efforts in spreading this awareness !
    My querries are as below :
    1- I want to plan 4 best Open ended MFs ( horizon min 5 yrs – 7 yrs ) , pls suggest , min 1500 in each – are HDFC equity , Franklin India Prima Plus and Can Robecco emerging equity good ?
    2- To avail 80 C benefits – pls suggest 3 best ELSS , and if I opt SIP mode that means effectively locking every SIP for another 3 yrs ? either 1500 in each or Lumpsum. Are Reliance Tax saver , Can Robecco Tax saver and Axis Long term Equity good ?
    3- How are guaranteed /assured return plans ? Like Kotak assured savings plan / HDFC click2 protect ? Is it wise to go for ULIPs now ?
    4- My key requirements are property purchase in next 5-7 years ( 60 lacs ) / Child education needs in next 15 yrs. (40 lacs ) What should be my monthly allocation planning & instruments ?

    Thanks !

    • Hi Nishant,

      You need to invest approx. 8000 per month to get approx. 40 lakhs after 15 years (assuming 12% return). You can consider investing in following funds @ 2000 each :
      ICICI Pru Focused Bluechip Eqty (G)
      Reliance Small Cap Fund (G)
      UTI Mid Cap (G)
      Reliance Equity Oppor – RP (G)

      https://wealth18.com/best-mutual-funds-to-invest-in-2014-top-performing-mutual-funds-in-india/

      ——–

      Regarding property purchase in 7 years for 60 lakhs, I think you should consider accumulating the down payment and not the entire amount? What you are trying to achieve – the down payment or entire 60 lakhs ?

      —-
      2. Re SIP in ELSS , yes you are right, every SIP amount is locked in for 3 years. You can go for:
      Axis Long Term Equity Fund (G)
      Reliance Tax Saver (ELSS) (G
      ICICI Pru Tax Plan (G)

      3.HDFC Click2Protect is not Sving plan. it is pure term life insurance plan and you will not get any maturity amount. The sum assured is paid only in case of death. As this is term insurance plan, it is one of the cheapest life insurance option.

      Kotak assured Savings Plan is a Life Insurance plan with maturity benefit. As such plans cover both insurance and savings, they do not provide high retuns . Normally such insurance plan, give returns in the range of 5%p.a

      Rather, You should consider taking a term life insurance plan and invest the balance money via mutual funds.

      Please message if you have more queries.

  246. Hi Vivke,
    I want to invest under section 80c-150000. I have made some investment already,
    Reliance tax saver-40k.
    Axis long term-30.
    Thinkning for franklin temp-30k Or please suggest where to invest remaining 80k
    Thanks
    saqib

      • hi vivek
        i am new to this mutual fund thing. my salary is 25ooo.. and my age is 25. i want to invest 10000 in Reliance Tax Saving mutual Fund. Not lumsum amount..i will break this in 2000.rs *5 for 10 years. is that sound good? is it profitable? should i choose 5 different funds? or i should invest 5 time (2000rs) in Reliance Tax Saver Fund…. please let me know
        god bless u

        • Hi Viraj,

          Do you want to invest Rs 10000 every year or just one time?
          How much monthly amount you can invest over long term ?
          Do you any tax liability and do you claim full deduction of Rs 1.50 laks u.s 80C.

          As Reliance tax saver is ELSS fund with 3 year lock-in which is eligible for 80C deduction.

          • thank you for replying…

            i can invest 10000 per month…for 10 years..just wanted know best investment plan for me..

          • You can consider investing in
            ICICI Pru Focused Bluechip Eqty (G)
            Reliance Small Cap Fund (G)
            UTI MNC Fund (G)
            HDFC Balanced Fund (G)
            SBI Dynamic Bond Fund (G)

            Invest in Growth plans via SIP on different dates

  247. Hi Vivek

    so far i didn’t invest in anything. Hence, i want invest rs 80000 in this month itself for getting tax benefits. pls suggest for good return. Eagerly waiting for your valuable suggestions

    • Hi Sundar, Hope you have read the details of ELSS funds in the post above.
      You can consider investing in
      Axis Long term equity
      Reliance tax saver
      ICICI Pru Tax plan

      Pls note that ELSS funds has 3 year lock-in. But as it is equity based fund, you should have long term view.

  248. Hello Sir,

    I’m 27 yrs old new to MF and have planned to invest in 4 Equity MF monthly through SIP mode

    1. Axis LT Equity Fund(G) 1000 Rs/PM for 25 yrs
    2. Reliance Tax Saver (ELSS)Fund(G) 1000 Rs/PM for 25 yrs

    3. HDFC Mid-Cap Opportunities Fund(G) 2000 Rs Rs/PM for 5 yrs
    4. Franklin India Smaller Cos Fund(G) 2000 Rs Rs/PM for 5 yrs

    Considering I stay invested in 1 & 2 fund for my tax saving & as retirement plan, 3 & 4 fund to accumulate wealth and latter use this corpus to invest in property. Are these funds good enough or can 3 & 4 be replaced with other funds like UTI Mid Cap Fund (G)/Reliance Small Cap Fund (G)?

    Please suggest

    Regards,

    Vinay

    • Hi Vinay., the funds selected are good and performing well.
      However, the time duration for 3 & 4 is less as you mentioned for 5 years. Small/ Midcap carrys higher risk and therefore you should have long term view,

  249. hi vivek

    In jan 2012 i have invested lumpsum amount 25000 in hdfc tax saving plan. now three yrs. completedand amount is double. so, should i reedem that amount and reinvest in other plan (like axis tax save, reliance tax saving etc) or keep that amount as it is. from this yr. onward should i switch to other tax saving plan(axis or relaince)

    thank you

    • HDFC tax saving is also performing well.

      But if you redeem it and invest it again in same or other fund, then there are both pros & cons
      Benefit- you can claim 80C benefit again in the year of new investment
      disadvantage- there will be lockin of 3 years again as it will be new investment. Also, there will be no additional investment from your side so future corpus will be less.

  250. I am confused between the two funds ICIC Pru Tax Plan and Axis Equity Long Term. Could you please suggest?

    Note: I also want to take risk profile into consideration.

  251. Hi Vivek,
    ICICI Pru RIGHT Fund in closed for online direct investment. Can you suggest a comparable one. I have already invested in Reliance Tax saver & Axis Long term equity.

    Regards,
    Lokesh

  252. Hi Vivek,
    Kudos to you for such a informative information . I want to discuss with you my futures plans.
    I’m new to Investment and mutual funds.My age is 24. My monthly income is 30000 PM, I’m saving 5000 Rs, to RD and took 15000 tax saver FD plan. I want to invest in MF and Equity/shares and want the tax benfits from ELSS plans.
    Could you please advise me ,which plans and techniques will be suitable to grow my money and for tax benefits.
    Please guide me on this.

    I eagerly waiting for your reply.
    Thanks in advance.

  253. Hi Vivek,
    I was just going through your articles its very useful,
    I’m just planning to start investing in 6000pm in MF’s. already I have some LIC policies upto 65000 per year.
    I want to invest 6000pm in MFs for 10-15 years. I’m planning to invest in following funds
    Please let me know if my fund selection is right

    Franklin templeton – 2000
    Axis Long term equity growth fund – 2000
    Reliance Longterm equity fund Growth – 2000

    if I invest like this after 10years how much I can get it.

    Regards,
    Sha.

    • 1) Are you planning to invest in MF & claim tax benefit. If yes, then you need to invest in ELSS funds only.
      2) Which Franklin templetom fund are you planning to invest in>

      If you invest Rs 6000 per month for 10 year, you can expect corpus of Rs 14 lakhs ( assuming 12% CAGR)
      If you invest Rs 6000 per month for 15 year, you can expect corpus of Rs 30 lakhs ( assuming 12% CAGR)

  254. Dear sir,
    I am 25 years old and earning 40000 every month.
    I have started investing 2000 every month in ppf.
    I want to invest 15k every month.
    Goals:-
    1. I want to get partial returns from the investment after 5 years with which I can buy a house.
    2. The other parcel of the returns, I need after 15-20 years.
    I have no exposure to any equity funds.
    Kindly suggest way forward in investing.
    Thank you sir in advance.

    • 1) how much money do you need / expect after 5 years for house down payment ?
      2) are you claiming full 1.50 lakhs u/s 80C

      For long term, you can invest in equity funds. You can consider investing in

      ICICI Pru Focused Bluechip Eqty (G)
      ICICI Pru Value Discovery Fund (G)
      Reliance Small Cap Fund (G)
      UTI MNC Fund (G)

      If you are not claiming full 80c deduction, you can also invest in elss funds.

  255. Hi Vivek,
    I need to invest Rs 80000 to take advantage of the limit under 80C. I want to break-up this amount into some conservative & ELSS investment as I am new to ELSS Can u help me out with suggesting a break-up and some funds and amounts where I should invest?

    • 1) For 80C, you can consider investing in PPF, LIC premium, 80C FD , ELSS etc (depending on your risk appetite)
      https://wealth18.com/80c-tax-saving-options-deductions/

      2) If oyu are new to ELSS, may be you can consider investing say Rs 25000 to start with in 3-4 funds from the list above. Invest over the period of next few months to claim 80C deduction for this year. From next year, you should invest in ELSS via SIP mode on a monthly basis/.

      • Hi,

        Please let me know the investments made under SBI Magnum Midcap fund-Growth covers 80C deductions or not.

        Thanks in advance.

        • SBI Magnum Midcap fund is NOT an ELSS fund and therefore no eligible for 80C deduction. Only ELSS funds are allowed for 80C deduction.

  256. DEAR SIR,
    I am interested in investing elss tax schemes to cover my tax liability ,pl guide me or give me a valuable advice so that I can invenst 50,000/- in my plan to split 50,000/- to 25000/- each and invest in axis LT EQUITY FUND AND ICICI PRU RIGHT FUND.
    PL GUIDE ME

    • Both Axis Long temr & ICICI RIGHT are best performing ELSS funds. You can consider investing in them.
      You can also consider spreading the investment over next 2 months so that you invest at various price points & average price.

  257. Dear Vivek,

    I am currently investing INR 1.1 lacs in two Ulips ( Pure Pension plan -HDFC). Should i stop these and invest in ELSS for the next 20 Years. What your suggest, should i start ELSS or continue with the Ulips.

    Besides, i also invest some INR 30,000 each month in 5 funds
    1 ICICI PRU DYNAMIC -G
    2.L&T INDIA VALUE
    3. UTI EQUITY
    4. HDFC BALANCED
    5.BIRLA SUNLIFE FRONTLINE EQUITY

    Please advise this is my second try to get your advise.

    • Hi Rahul,

      1) Re ULIP, can you please give more details – name of policy, premium amount, duration, sum assured, when ntaken , maturity etc

      2) consider investing in ELSS if you want to claim deduction u/s 80C. there is lockin of 3 years

      3) These funds are OK but not that great. may be check the best funds from the list above.

      • Dear Vivek,

        Thanks for your reply. The Ulip i am investing in Unit linked pension plus. I invest 100000 each year in this . Duration is 20 Yrs, purchased in 2008.

        Also, i plan to invest in Reliance Tax Saver fund – ElSS.

        For mutual funds my time frame is 10 yrs min. I also invest in Franklin India Blue chip.

        Need help to streamline.

        • Reliance Tax Saver fund – ElSS is good ELSS Funds

          Regarding other MF investments, you can consider

          ICICI Pru Focused Bluechip Eqty (G)
          Reliance Small Cap Fund (G)
          UTI MNC Fund (G)
          UTI Mid Cap (G)
          HDFC MidCap Opportunities (G)

          regarding ULIPS, I think that the surrender value will be quite low. But you can always call them and check what will be the surrender value on that date.

  258. I want to invest Rs.8000/ for income tax savingsc under 80 C
    (FY 14-15) in low risk ELSS fund. Please suggest the nname of the fund.

    • Hi Supratim, there is NO LOW risk ELSS fund. Please note that all ELSS funds are Equities based, so they invest in Shares.
      Normally you should have long term view when you are investing in ELSS / Equities fund. You should not become impatient with daily market movements.
      If you invest for long term & systematically, the chances of getting good returns are high.
      For e.g. Axis Long term Equity fund (G) is an ELSS fund which has given following returns over last 5 years
      2010- 30%
      2011 – (-15%)
      2012- 34%
      2013 – 16%
      2014 – 50%

      You can select 2-3 ELSS funds from the list given in post above.

  259. Hi Vivek,

    Could you please post your personal email id over this site, I need to send you some documents to understand the fund switching in TATA AIA Lakshya Plus Policy, I completed 3 years of locking period and now TATA AIA provides the Investors to switch the mutual funds among 8 mutual funds. I am not able to understand for what each Fund stands for and what exactly they do.

    Thanks
    Uday…

  260. Hi Vivek,
    I am a 24 year old fresh out of college investor.
    I have a salary of Rs 75,000 pm.
    Out of this I have a Recurring Deposit in the Bank for Rs. 25, 000 pm.
    I keep Rs 25, 000 pm for my everyday expenses and living.
    So I have Rs. 25, 000 pm left which I want to invest in Mutual Funds and/or ELSS and/or FD
    I know I have read your posts and will choose the growth plan and the Direct option while investing in ELSS/MF

    I wanted to know that:
    1. Should I split this amount 25K in ELSS or Mutual Funds. [Once I have decided I can choose equity(large cap/small cap), debt or gold].
    2. How would you suggest a good break up of Rs 25 K in a month can be invested. I will be keeping a lookout on my investments and track them quarterly. Once you can tell me the break up I can choose the best plans which you have listed on your website.
    3. Is making an FD advisable. I am relatively young staying with my parents so my risk appetite is strong.
    4. I have already covered my 80C limit by saving Rs. 1.5 lakhs in my PF.

    I am looking to start my own business/ entrepreneurial dream in about 5 years. Thats why I am making such heavy investments. I have a strong RD for my liquidity needs which might arise in the future.

    Thanks for being such a good human being and helping so many others. More power to you!

    Shiv

    • Hi,
      I am sorry. I thought just generally all questions were answered and not selective ones.
      Anyways thanks for the information in the article. Have a good life.
      Thanks

    • Hi Shiv,
      First of all congrats on getting such a good salary package as a fresher.

      If you are already covering 80C deductions, then rather than looking into ELSS, you can consider all range of mutual funds.

      You can split your Rs 25000 investment as follows:

      Equity funds – 15000 ( Large cap – 4000, Small & Mid cap – 8000, diversified – 2000, Sector funds-1000)
      Debt funds – 7000
      Gold fund – 3000

      2) FD is not advisable as the interest is taxable. So the post tax returns are much lower.

      Feel free to ask more queries , if you have any further doubts.

      thanks

  261. sir,

    i want to invest in elss pls suggest me my monthly salary is 50000/- and i am invest in lic at present 61500/- and ppf 15000/- per years.

    • Hi, You can invest in ELSS if you have not yet exhausted your limit for 80C – Rs 1.50 lakh.
      How much is your PF deduction every month?

  262. Greetings from Krish.

    Would like to thank you for your great efforts in maintaining this live portal. I am sure it is a definitely a very practical and educational portal for general public and getting to see everything at one place is really great for me.

    Would need the recommendation on the following.

    I am 40 years aged. I am looking in for long term Investment. My financial baker (Bank Manager) has suggested to invest in the below MF with a monthly investment of Rs2000/ each.

    ICICI Prudential Focused Equity; Prudential Discovery Fund; HDFC Top 200 Fund; DSP Black Rock TIGER Fund; IDFC premier Equity Fund.

    My questions,

    1) Would like to know, if I can I go ahead with these 5 MF’s or is there any possible downside on each one.

    Would be great to hear from you while you can. Thanks.

    Regards,
    Krish

    • Hi Krish,
      Thanks for finding the site useful.
      Regarding these funds, they are performing well and you can consider investing in these.You should keep long term view.

  263. Hi Vivek,
    Cheers.My Annual income is 13,65,000.I don’t have any major savings for showing in tax exemption[1,50,000] for 2014-15.I have completely read your above blog and I am considering to invest in the below tax saving MF’s.Can you please let me know if
    1) The below funds are good for Tax saving.
    2) If I invest in them today Will I be able to show to show them in 2014-15 and have tax exemption on them?
    Axis Long Term Equity Fund(G)
    Reliance Tax saver [ELSS](G)
    ICICI Pru Tax plan-Regular Plan(G)
    BNP PAribas Long Term equity(G)
    SBI Magnum Tax gain or SBI Magnum midcap fund(G)

    • If you invest in these funds before 31 Mar 2015, you will be able to claim deduction u/s 80C upto a total limit of rs 1.50 lakhs.

      You can split your ELSS investment in following 3 funds
      Axis Long Term Equity Fund(G)
      Reliance Tax saver [ELSS](G)
      ICICI Pru RIGHT

      It is better to invest periodically every month/ week rather than investing all amount at once.

  264. Hi Vivek,

    Firstly, I appreciate your efforts to respond to each of the questions on your site. and your site is very useful and informative.

    I am new to mutual funds and would like to start investing in ELSS via SIP 5000 per month starting from January 2015. I am thinking to invest 5k in Reliance Tax Saver fund looking at some good returns in the last year.

    Is it a good decision or should I split the amount and deposit in multiple funds (if yes, Please give me alternatives from your list).

    Thanks in advance.

    • Hi Jayanth, Thanks for finding the site useful.

      Re your query, you can consider consider investing in 2 funds : Axis Long term, Reliance tax saver.

      You should keep in mind that ELSS are Equities based fund and the returns are not guaranteed. Normally the returns are good over long term 5-7 years. You should have long term view and not an expectation for 1-2 years.

  265. Hi Vivek,

    Thanks for extending your valuable advice for all the enthusiasts!!
    I have a monthly salary of around 65k and my age is 25 years.
    As of now I have been saving in RD but want to switch to MFs.
    I can shell out around 15k/month for different SIP.
    Could you please help me with a portfolio??
    I would like to add a tax saving component as well!!

    Looking forward to your reply soon!!

    • 1) you can consider Axis Long term Equity, Reliance tax saver
      2) You will get the tax benefit in the year you make the investment. If you need tax benefit next year, you need to invest again next year.

  266. sir, myself a doctor in govt job…earning 79ooo p.m…i have invested in fixed deposits 1.5L for tax benefits in 2014…n in icici maximizer 5 wealth builder plan (1lakh) for 5 years….kindly suggest me if am doing right or not…n wat should i do moe…my husband is also a doctor…earning 60k p.m…we have our monthly expenses around 45k….he is planning to open ppf accnt for tax benefits

    • 1) You should consider opening PPF account. It is for long term 15 years. See details below
      https://wealth18.com/public-provident-fund-scheme-ppf-account-features-tax-benefits/

      2) Investing in Tax Saving FD is not the best idea. because the interest on that FD is still taxable every year. You can consider investing in ELSS fund with long term view.

      3) ICICI Pru Wealth Builder – Maximiser Fund V is a Unit Linked Insurance Plan. If you discontinue the policy before 5 years, there will be discontinuation charge. As the insurance amount in ULIP are not good, it is better to take a separate term insurance policy for higher sum assured.

  267. Dear Vivek

    Great Article!

    I wanted to ask, i was making an investment of 3k per month through SIP in following Plans 1 k each
    1. Reliance Tax Saver (ELSS) Fund
    2. HDFC Tax Saver – Divedend plan
    3. HDFC Top 200 Dividend option

    I am done with 3 years now, and i have seen good returns, should i continue with the same. I intend to invest further 2 k per month. Which one should i invest in?

    Please advise.

    • Hi Nitin,

      1) If you intend to build corpus amount for the future, you should remain invested and also continue to put more investment.

      2) As you have taken dividend option, some money is paid to you periodically. However, for long term wealth creation, you houdl switch to GROWTH option.

      3) You can consider investing in
      ICICI Midcap fund
      Reliance Equal Opp fund

  268. Hi Vivek,

    I am an IT executive and earning Rs.100000.00 per month whereas i am very poor in investments because i have only one Life insurance which is giving me Rs.25000.00 tax saving benefit per year so need to know which are all the area where i can invest and i can take benefit of Tax saving out of it.

    Please help me with your valuable suggestion on this.

    Thanks
    Ahmad

  269. Hello Vivek,

    Good Afternoon. I appreciate your valuable efforts and time on this topic. As many of the fellow investors, I am looking to invest in ELSS and Open ended mutual funds.

    1. I need to invest 10K lumpsump in one ELSS MF, can you suggest.
    2. I would like to start at SIP from April’15 for amount 3-4K in ELSS funds, can you suggest 3-4funds to diversify.
    3. I want to start a SIP immediately (5K per month) for open ended MF, suggest 1-2 funds please.

    Regards,
    Ashish

  270. Vivek sir,
    My monthly income is 42000. I do not have more information regarding to ELSS fund. I need to invest 2000 per month in ELSS fund.
    Please suggest me suitable fund. I don’t know how to open account for ELSS fund means from where and how it can purchase.

  271. Hi Vivek Jain,

    Greetings for the Day!

    I am most interested to invest in ELSS funds with a perspective of earning high returns which would be tax saving funds too at the same time. So, May I kindly request you