Hi All
As you all might already know.. that, when the new tax code comes into effect (April 2011 ) return on all investments will be taxable. And new investment will not go into any open ended tax saving fund.section 8C will no long be present and hence ELSS will cease to exist.
a) If we make an investment in 2009/10 with 3 years lock in period, we can expect our returns only after 2012/13. i.e the ELSS performance in next 2 years will be without any new cash inflows
b)And existing customers may come out of the this tax saving instrument as they cannot save tax on investments after new tax code. Size of the funds will considerable decrease after this as result of withdrawals and no new investments
Now i have the following questions/Doubts.
1) Will the fund Houses/Managers actively manage the fund after April 2011 ?
2) How far/much will withdrawals and investments effect the existing funds ?
3) Is it a safe bet to invest in ELSS during 2010/11 ? Can we expect the returns similar to the past
4) Will the MF Industry come up with a new tax saving instrument ?
In a word what the future of Tax saving funds ?
As you all might already know.. that, when the new tax code comes into effect (April 2011 ) return on all investments will be taxable. And new investment will not go into any open ended tax saving fund.section 8C will no long be present and hence ELSS will cease to exist.
a) If we make an investment in 2009/10 with 3 years lock in period, we can expect our returns only after 2012/13. i.e the ELSS performance in next 2 years will be without any new cash inflows
b)And existing customers may come out of the this tax saving instrument as they cannot save tax on investments after new tax code. Size of the funds will considerable decrease after this as result of withdrawals and no new investments
Now i have the following questions/Doubts.
1) Will the fund Houses/Managers actively manage the fund after April 2011 ?
2) How far/much will withdrawals and investments effect the existing funds ?
3) Is it a safe bet to invest in ELSS during 2010/11 ? Can we expect the returns similar to the past
4) Will the MF Industry come up with a new tax saving instrument ?
In a word what the future of Tax saving funds ?
