Shortlisted 2 ELSS funds to invest Rs 2000/- per month –
1. HDFC Tax Saver
2. Canara Robeco Equity Tax saver
Need to finalize 1 of them; there are some pros and cons for both of them..
Can. Robeco has a substantially high expense ratio of 2.32 (HDFC is 1.85) which would definitely have a negative compounding effect over the long term.
On the other hand, 5 yr SIP returns are higher for Can. Robeco (11.74%).
Not sure how much the higher returns could offset the higher expense ratio. Also, returns could anyways change with change in market conditions.
Not sure about the management style of both the fund managers.
Any thoughts/advice?