April 10, 2013 10:16 am
i have sortlisted below funds for tax saving:
ICIC prudential tex plan
HSBC tax saver
relaince tax saver..
Which should be choosen..
Dear rajan, here it goes. if your fund starts underperforming down the line, to come out full, you w’d have to wait till last SIP or investment. So March 2014 means march-april 2017, whereas July 2013 means july-aug 2016.
Also, if DTC is implemented in next few years (it’s still only talk as on date) & the old investors start pulling out heavily from the funds, this may impact NAV & ultimate the return for the people who are in compulsory lock in period.
Any specific reason to complete investment in next 3-4 months?
Dear Rajan, in case of any tax saver funds, please complete your investments in next 3-4 months. Please invest in growth option only for the reasons already discussed above.
not even dividend payout, as dividend below 200/- would not be given to you, but reinvested in the fund without your consent -again locking for 3 yrs! this is under some SEBI rules/guide lines. go only for growth.
Also make sure you do not go for dividend reinvestment option!
DIY for you – find out why 🙂
All are good funds. Anyone can be chosen. Not to confuse you but why not Canara Robeco or Quantum Tax saver?
If you are going to start an SIP in them, think again. Each SIP has a 3 yr lock-in. So you cannot exit the fund immediately if it is under-performing.
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