Lump-sum investment in ELSS

POSTED BY Chetan Ambi ON December 16, 2012 4:51 pm COMMENTS (8)

Hi,
I got 30k as a bonus from my employer. If my family comes to know about it money will spent on something which is not useful. Its my hard earned money so I want it to be safe. I want to go far investment where there is lock-in period. I already invested enough in PPF for this year. So I want to put this money in good performing ELSS fund for long term (3+ years). I have looked into valueresearchonline and found that some good funds below. Can anyone suggest is it good to invest in ELSS in lumpsum? Or if any other option please suggest me

Canara Robeco Equity Tax saver
HDFC tax saver
SBI Magnum taxgain

Thanking you all in advance!.. 

8 replies on this article “Lump-sum investment in ELSS”

  1. Ramesh says:

    Why not to put the money in a non-ELSS fund. Check out a balanced fund or something like Franklin Templeton Dynamic PE ratio fund (since you seem to fixed on principal protection).

    Also, QLTEF has a long exit load period (of around 3-4 years). This will keep the liquidity as well as a mental block of suffering an exit load if you want to withdraw earlier.

  2. Chetan Ambi says:

    Yes. I got your point. Thank you all for the help!!..

  3. The long term equity investor will not and should not worry about weekly market ups and downs.

    In the long run more than 5+ years decent returns can be expected. 3 years is too short to expect too much from equity.

    Also lumpsum investing should be avoided and systematic transfer plan is best for large sums..

    The point is the confusion reg. where to invest can only be solved by you. You need to be clear about when you need the money and how much it need to grow.

  4. Chetan Ambi says:

    Thanks Sekha.. My thinking is in the long run (more than 3+ years) ELSS can give good returns. rite? They are just like equity funds except 3 years lock-in period.

  5. somasekhararaom@gmail.com says:

    Hi,

    Don’t invest lumpsum at this time in ELSS. Markets are ready to falling down now. Choose a best debt fund.

    Thanks,
    Sekhar

  6. I dont know enough about FMPs to make a choice from that list. Besides they are all like new fund offers. Someone would probably make a suggestion.

    In my view your risk appetite should not govern your choice. The risk profile of your goal should decide that. When do you need the money, what for, what inflation is expected and what returns are needed to beat inflation. This should decide where you invest.

    you may not like risk but if you dont take a little risk you may not get enough purchasing power with money.

    So you could park a little in MFs and little in FMPs to give some spread.

  7. Chetan Ambi says:

    What about investing in any one of the below good FMP so that money will be safe? I dont need this money as of now. I am moderate risk taker. What is the tax treatment in FMP’s?

    http://www.valueresearchonline.com/funds/fmpnfo.asp

    Could you please assist?

  8. You can invest in a liquid fund and do a systematic transfer plan (say 5-10 K each month) into the ELSS fund if you want tax benefits (lock-in is not crucial if you can be disciplined and not touch it).

    Canara Robeco is a good ELSS fund.

    In an ELSS fund there is no capital protection guarantee.

    A 3 year fixed maturity plan gives you that, decent return. Its taxable but indexation wrt inflation will make it better than FDs

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