Top Tax Saving ELSS Funds to Invest In 2016 – This is the taxation time and search is on for the best tax saving instrument. One of the best option for tax saving is Equity Linked Savings Schemes (ELSS), this is a good way to save tax in long term with good growth rate and returns. Although this is not widely popular and accepted option for investment.
ELSS Funds having a lot of advantages over another Tax saving instruments like
- Compare to Bank Tax Saving Fixed Deposit the ELSS Funds have a lock-in of only 3 years where as in Bank’s 5 years. In PPF the lock in period is 15 years.
- Since ELSS funds are having advantage of Capital Gains hence dividends are tax free, where as other instrument except PPF (Older) are Taxed.
- Investment in ELSS gets the benefit of tax exemption under Sec 80C of the Income Tax Act.
Which are the Best ELSS Fund for year 2016 ?
It is very much difficult to choose the best fund out of so many funds running. There are many funds like
- Birla Sunlife Tax Plan
- DSP BlackRock Tax Saver Fund
- Franklin India Tax Shield
- ICICI Pru Long Term Equity Fund
- Axis Long Term Equity Fund
- IDBI Equity Advantage Fund
- Reliance Tax Saver
- Religare Invesco Tax Plan
All these funds are having good presence in the market with consistency. The process of choosing the best among these have been considered through various parameter like Standard deviation, Sharpe Ratio, Previous 5 years returns, Distribution Percentage and SIP returns. Based on analysis of all these parameter the funds have been shortlisted for investment in 2016. The Major top funds to be invested in 2016 are
- Axis Long Term Equity Funds : This fund have smartly distributed the sector hence a solid portfolio of retail driven funds.They are heavily invested in banking stocks of private sector like HDFC and Kotak Mahindra which constitute almost 14% of the portfolio. One year returns of this fund is negative but overall fund has generated a return of almost 25 per cent in the last three years.
2. Franklin India Tax Shield Fund : This fund is most popular since inception i.e. 1999. Franklin India Tax Shield Fund has given a returns of 13 per cent in the last 5 years.They are having big heavyweight of market like HDFC Bank and Infosys in their portfolio.
3. DSP BlackRock Tax Saver Fund– This also a popular ELSS investment fund for long. It was started in year 2007 and since then a good investment option. a very consistent performer in this segment of investment.
NOTE : One may choose any of the fund mentioned above based on professional help. We are just providing the information and not at all confirm about the returns of any of the funds.Get the detailed information before investment.