Best Tax Saving Mutual Fund / ELSS Fund to invest in 2012-13

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 2012-13 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 2012-13

  1. Canara Robeco Equity Tax Saver – The Best ELSS Fund
  2. Franklin India Taxshield – Consistent Performer – Suited for people who are looking for good return at a very low risk.
  3. Religare Tax Plan – Higher risk than above two
  4. Sahara Tax Gain – Has mid cap portfolio so high risk but high return. Invest in this if you are looking to diversify in mid caps.
  5. Taurus Tax Shield – Most volatile fund among the group. So invest only if you can take the risk.

Changes from Last Years List:

Have removed Fidelity Tax Advantage as Fidelity was taken over by L&T Finance and the fund is know as L&T Tax Advantage. L&T has still to prove its fund management skills and so its safe to keep away from this fund for fresh investment.

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 Fund1 Year3 Years5 Years10 Years
 Canara Robeco Equity Tax Saver29.7%11.9%7.9%24.8%
 Franklin India Taxshield27.0%11.3%5.1%25.4%
 Religare Tax Plan28.3%9.9%5.3% –
 Sahara Tax Gain30.0%8.8%5.2%24.5%
 Taurus Tax Shield29.5%6.9%2.6%21.0%

*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.

  1. Escorts Tax Plan
  2. DWS Tax Saving

Both the above ELSS have been consistently performing at the bottom.

2 thoughts on “Best Tax Saving Mutual Fund / ELSS Fund to invest in 2012-13”

  1. Dear sir
    1 : which mutual fund is best for average return ,safe and tax saving
    2 : any monthly investment scheme like RD for 5 years or 8 years in mutual funds

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