Good ELSS MF for tax saving

POSTED BY Rajeev Rajendran ON January 7, 2012 6:31 pm COMMENTS (5)

I am 23 years old software guy..I have to do tax saving of rs.30000 for financial year april 2011-march 2012 can anyone suggest me some good ELSS MF?I have a planned a term plan..or since there is know tax exemption for ELSS from next year can I start my investment in ULIP from now itself instead of ELSS for tax saving?need ur advice on it…

5 replies on this article “Good ELSS MF for tax saving”

  1. srivatsan ganesh says:

    Hi rajeev ,

    Nice to hear that you are also a 23yr old software guy 🙂 ., yes like others said PPF will be a good option to invest interms of tax and long term risk free investment.,

    Elss – I will suggest the same what people have suggested above as even i have invested and investing (sip) in them oly.Lets pray nothin happens nxt yr

    other than this try to invest a part in market too .For 23 yr old its not a bad option to choose


  2. Dear Rajeev, just to add in the whole sage for next year tax planning. In all probability, DTC is going to miss it’s deadline. It’s stil not passed as an Act by parliament & thus the deadline of 1st april 2012 seems impossible to reach.

    So in a sense you may invest next FY also in ELSS.





    1. both are good funds in their category.

    2. Yes . if DTC is implemented and ELSS may be out of the section 80 C. the list of investments under 80c is also not clear for the next financial yr. NPS(new pension scheme Lock in till retirement), Tax saving FD(lock in 5 yrs) are some other avenues you still have in this year.

    3. good. if u are a risk taker no problem. but do have in mind that tax saving investments should be aligned with your general financial plan.. If you have a equity and debt(ppf, fds) ratio stick on that always.

    Ppf is a very lock term investment(15 yrs) with current interest rate as 8.6 percent . the maturity amount is also tax free. So investing a part of the amount will not be a bad option eventhough you are young


  4. Rajeev Rajendran says:

    Thank you for ur valuable advice.
    1.I have planned to go with the Hdfc tax saver-15k and Fidelity tax advantage-15k is it good?I am planning for long term as u said. year since I wont be having ELSS tax saving investment option I am left with PPF,ULIP,Life insurance to invest am i right?

    3.out of the three u r suggesting PPF?it ll be giving around 8% returns right?I am not conservative since i am youngster ready to take some risk..



    1. For tax saving u can consider PPF investment as rates a higher.(if you are conservative)

    2. ELSS funds(Need to have 5 yr horizon as volatality is more in the market now a days)

    1. Hdfc tax saver
    2. Fidelity tax advantage
    3. Canara Robecco Tax saver.

    3. Pls avoid ULIP. As it is always better to insurance and investment separate.


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