ELSS (Equity Linked Saving Scheme) also popularly known as Tax Saving Mutual Funds are one of the best investments you can do to save tax and create wealth in the long run. But unfortunately according to the proposed direct tax code ELSS would be a thing of past and it would no more be eligible as tax saving instrument under section 80C of Income tax.
Nevertheless Financial year 2011-12 still gives you an opportunity to invest in them and save tax. If you have not yet invested your 1 Lakh under section 80C to save tax, you might look at ELSS/ Tax Saving Mutual Funds. In an earlier post I had mentioned how you can select the best Tax Saving Mutual Fund / ELSS Fund to invest!
Following similar footsteps below is the list of “Best Tax Saving Mutual Fund / ELSS Fund to invest in 2011-12”
The table below gives the returns of these Tax Saving Funds for 1 Year, 3 Years, 5 Years and 10 Years period.
ELSS/ Tax Saving Mutual Fund | 1 Year | 3 Years | 5 Years | 10 Years |
Canara Robeco Equity Tax Saver | 5.9% | 39.6% | 16.5% | 21.6% |
Franklin India Taxshield | 0.4% | 33.8% | 13.0% | — |
Fidelity Tax Advantage | 6.4% | 34.1% | 13.1% | 23.7% |
Religare Tax Plan | 7.8% | 34.0% | 10.2% | — |
Sahara Tax Gain | 6.1% | 34.5% | 15.0% | 22.6% |
Taurus Tax Shield | -1.6% | 30.1% | 17.2% | 21.4% |
*The returns are annualized for more than 1 Year.
I thought I would give you a list of the Tax Saving Mutual Funds or ELSS you should keep away with.
All the above 5 ELSS have been consistently performing at the bottom. You can check their returns in the table below:
ELSS/ Tax Saving Mutual Fund | 1 Year | 3 Years | 5 Years | 10 Years |
Escorts Tax Plan | -6.6% | 17.1% | 0.4% | 15.9% |
JM Tax Gain | -3.2% | 20.7% | — | — |
DWS Tax Saving | -4.5% | 20.9% | 5.2% | — |
JP Morgan India Tax Advantage | -0.1% | 21.3% | — | — |
LIC Nomura MF Tax Plan | -3.1% | 21.6% | 3.3% | 13.9% |
*The returns are annualized for more than 1 Year.
As you can see in the table above even the worst ELSS fund has given an annualized return of 17% for past 3 years making it a perfect investment instrument for tax saving and wealth creation.
Everyone hates paying taxes and always are on lookout for Options to Save Tax. However…
Are you worried and confused about Lien amount in SBI? Well you are not alone.…
Get details of latest Sovereign Gold Bond Price, Issue details, taxation and how to invest.…
Download the Excel based Income Tax Calculator India for FY 2020-21 (AY 2021-22). This compares…
Piramal Capital & Housing Finance, has come out with Piramal Capital & Housing Finance Ltd…
IIFL Home Loan, the Housing Finance company from IIFL Group has come out with IIFL…
View Comments
that as per new CBDT rules,a salaried lmpeoyee whose total income is less than rs.5lakh need not submit his IT return.1. But then how will the tax payable be determined?2. If it is determined on the basis of TDS certificates, won't the tax be lesser as the TDS rates are less ?