Feb 17, 2012

Best ELSS Funds 2012

Before we select the Best ELSS funds for the year 2012, let us first recall the earlier discussion:

1. Why ELSS is considered as the Best option under Section 80C?

2. How to invest in best ELSS funds

3. Best ELSS Funds for 2010

4. Which is the best option under ELSS: Dividend Vs Growth

5. 5 Guidlelines for investing in ELSS

Last time, the procedure adopted for selection of Best ELSS funds was a very detailed one…this time I’m simplifying it. Currently, there are around 37 Equity linked Saving Schemes (ELSS funds) in the market; before we choose the best ELSS, let us see the performance of
the elss category over a period of time (As on 10th Feb 2012):
Period………..Av. return…….Best……..Worst…….Sensex
1-Yr…..………3.32…………13.11………(5.93)……..1.64
3-Yr…………25.04……….35.38………14.53…..….22.53
5-Yr………….5.24…………13.11……..(2.38)………..4.07

Now, let's see the list of top performers:
As usual, this time again the Canara Robeco Equity Tax Saver (Our Aamir Khan) retains the top slot; to include it in a list of top-3 will be a disgrace because it has league of its own; nothing can beat it. So after excluding this super-star, the other top-3 elss are
1. Religare Tax Plan
2. Franklin India Tax Shield
3. Sahara Tax Gain

And if you wish to extend the list, you can include the following two ELSS:
4. HDFC Tax Saver
5. ICICI Prudential Tax Plan

However, I would like to again remind you one important point: no doubt it is important to choose the best performing ELSS funds—though a difficult task as performance keeps on changing— because even a one per cent variation can make a substantial difference over a period of time, it is more important to avoid the worst performing elss funds.

The worst five ELSS funds are listed here:

1. Escorts Tax Plan
2. LIC Nomura MF Tax Plan
3. Baroda Pioneer ELSS 96
4. Principal Tax Savings
5. UTI Equity Tax Savings

Any doubts or questions?


Also See:

1. 5 Things to Avoid while investing in Equity Funds
2. Beware of the Misleading Ads by Mutual Funds
3. How to Choose the Best Equity Fund
4. PPF—Best Debt Option under Section 80C
5. Section 80C: Investment Options for Tax Savings

2 comments:

  1. Great post..shared on FB :)

    ReplyDelete
  2. Hi Fisher,
    I have been reading your posts for one year now on various topics. I wish to clear some of my doubts regarding mutual fund investment.
    1) What is the minimum amount that need to be invested to see good returns in the long run?
    2)For example, I am investing Rs.2000 in Franklin Templeton monthly(SIP). It is getting over by next month. I wish to continue that, but also invest in one more good fund. Now, is it wise to invest Rs.1000 in Franklin Taxshield and another Rs.1000 in HDFC tax saver.

    Thanks & Regards,
    Hob

    ReplyDelete

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