Advise on Discontinuing ELSS Scheme

POSTED BY Durgarao ON September 29, 2010 10:04 am COMMENTS (10)

Hi All,

3 months back i have taken HDFC Tax saver(5k SIP) using ECS facility(HDFC Savings Account) for 9months(from july 2010 to march 2011). Now i am travelling to UK for Long term(more than 2 years). Still i want to invest in MF’s. If iam correct for further months i don’t need to show any investment proofs.So i want to discontinue Tax saver SIP and want to invest in HDFC top200 for long term.Right now i am holding only one fund(HDFC Tax saver).

1)Do i need to inform HDFC bank that i am travelling while starting HDFC top 200 scheme?

2)Is it a good idea to stop HDFC tax saver and start new scheme or can i continue Tax saver itself?



10 replies on this article “Advise on Discontinuing ELSS Scheme”

  1. kumar says:

    had invested in reliance ELSS MF for 3000 per month , if I want to discontinue now will I get my 3000 rs back , pls tell and guide me

    1. The lock in period is 3 yrs for ELSS. You can get money after that !

  2. Durgarao says:

    Thanks for valuable information

  3. Your financial advisor/planner should have 3 basic qualities Competent, comprehensive & independent.

    Best way to find a right advisor is to shortlist few advisors that you feel have good knowledge.

    If you don’t know anyone start your search from – on right hand side there is a tab CFP Certificant directory. Find few local planners in your area & interview them.

    Draw a questionnaire – ask some questions that will help you to analyze them. There is nothing wrong in asking these questions. Along with education and experience, ask about his association with financial companies. Is his earning linked to his performance and if yes, by how much? These questions will answer your concerns over his advice.

    Finding a good advisor is time consuming but this will decide your financial success. Try to find a good advisor that’s right for you.

  4. Durgarao says:

    Can you suggest some financial adviser names in bangalore?

  5. Should one exit ULIP after 1 year??

    After First Year premium: ULIPs are very expensive product and bit tricky in its calculation. The expense varies anywhere from 20% to 70% of first years premium. Do check the same and if you find those heavy expenses, say thanks to your Agent & get your insurance bond laminated so that not only you but others also don’t make such financial blunders in life. (Take your call – it’s not a wise decision to throw good money to save bad money)

    Continue your PPF(NRIs can continue existing PPF account but can’t open new accounts)

    Mutual Fund portfolio construction is a complex thing & you should take help of some professional. Must adopt Asset Allocation strategy to reduce risk & increase return.

  6. Durgarao says:

    Thanks Hemanth.

    I am 24 years old,My portfolio consists of

    1) HDFC Endowment plus 2 ULIP( 3K SIP) – Start date 09/09/2009
    I already completed 1 year premium,If i stop paying the premium now itself my loss is nearly 40k, so i want to continue for 2 more years and make policy paid up after 3 years.

    2) HDFC Tax saver (2K SIP) – Start date 10/07/2010 (For 9 months)

    3) PPF Account(Monthly 1000 ) – Start date 20/08/2010

    I Can save upto 12k/month, i have financial goal for long term only(more than 10 years).
    I want to start new SIP in HDFC Top 200(2k),HDFC Equity(2k) and DSP BR Top 100(2k)

    Could you please give me your inputs on the restructuring my Portfolio ?

  7. According to my understanding right now you are not NRI & you should do it from normal saving account.

    Once you get the status of NRI than you can do accordingly.

  8. Durgarao says:

    Thanks for your views hemanth.

    One more thing do i need to change my existing hdfc account type to NRI Account if i use ECS facility for future investments while iam in UK?

  9. For simplicity purpose you can still continue HDFC tax saver but this will not provide you liquidity due to lock in period,(If you really want to redeem or do proper asset allocation)

    My suggestion is if you are moving to UK on job assignment – better construct a proper sip portfolio rather than taking just 1 sip in HDFC top 200.

    In case you want to stick with decision of discontinuing taxsaver & starting it in top 200, you need to:
    1. SIP stop request to HDFC Mutual Fund for taxsaver
    2. New SIP request to HDFC Mutual Fund for top 200

    No need to inform HDFC bank.

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