January 18, 2011 7:38 pm
What do you think about Franklin India Index Tax Fund – 60,000 (SIP) to save tax?
60 K would be one single SIP as minimum monthly for FIITF is 5k
reasons are many…
Indexing is good because it is passively managed, not much dependency on fund managers, Franklin is well known for fund management whatsoever will be needed in indexing, in long run it is very difficult to “beat” the index,
India economy is still growing so lots of opportunities to discover – may explore really good opp. and get really good returns
Please let me know if I am thinking in the right direction
Lot of inherent contradictions there.
1. Min monthly SIP or a single lumpsum investment in FIITF is 500 and not 5k as per valueresearchonline.com. Also if you want to invest 60k as lumpsum you will say it as that and not SIP. If by chance, you are planning to invest 60K per month, then investing in a ELSS beyond 1lakh per year does not make much sense, unless you want to lock your money from yourselves!
2. Indexing is good only and only if the annual fund management charge is very low (in the range of 0.2-0.3%). This fund has a FMC of 1.5%. So it does not make any sense to get into it, when you can get much better returns by investing in a fund with slightly higher FMC.
3. Franklin is well known for fund management. Correct but that is for Active Management. Paying them so much for passive management does not make much sense to me.
hope this helps you.
Is 60k a single SIP or the total of all SIP is 60K !!
Why do you think indexing is good? And that too in Indian markets? Please elaborate the reasons.
I am interested in FIITF is because it’s only Index fund (as far as I know) that comes under ELSS … so Index Fund + ELSS is a great combination I thought ….
please elaborate if you diagree.. so that I can understand
I think better is HDFC Tax Saver and Fidelity Tax Advantage 🙂
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