Which ELSS to opt for

[CPP]

According to current market trends which ELSS funds are best to invest in. I have analyzed few ELSS funds & found by going through different forums that the best are probably

Sundaram BNP paribas taxsaver
Magnum Taxgain
Birla sunlife tax relief 96
Fidelity tax advantage

Looking at the current NAV's of these funds are they a safe investment, if going for an investment time frame of say 3 to 5 years.
Also are there any other ELSS funds besides the above mentioned which could be considered as a good investment?

 

[adithyapr]

All the above are pretty good pick.
Personally i prefer Sundaram and Magnum tax gain.

Check out .. Canara Robeco Tax saver .. felt its worth giving a look.

Yes regarding the time .. you always need to look MFs in a time frame of 3-5 yrs and go for SIP.

- Adithya

 

[mrindia]

According to current market trends which ELSS funds are best to invest in. I have analyzed few ELSS funds & found by going through different forums that the best are probably

Sundaram BNP paribas taxsaver
Magnum Taxgain
Birla sunlife tax relief 96
Fidelity tax advantage

Looking at the current NAV's of these funds are they a safe investment, if going for an investment time frame of say 3 to 5 years.
Also are there any other ELSS funds besides the above mentioned which could be considered as a good investment?

Hello!
ELSS are tax saving instruments. These carry a 3year lock-in period.
Sundaram Tax Saver & Magnum Taxgain both are good.

mr india

 

[CPP]

Thanks for the comments Adithya & Mr. India. From both the replies that i have received so far, it seems that choice of ELSS funds that i have initially thought of is probably correct.

I would really appreciate, if anyone can clarify one more point to me or suggest link where similar topic is discussed...........

As i am not an investment expert, neither i have too much knowledge on different fund types, so i was wondering whether investing on a fund which have performed really well in past is better than investing on a starter which has a potential to grow. E.g. if we talk of Sundaram BNP paribas tax saver fund which is an open ended fund. It has performed well in future so it's NAV will be high thus giving profit to investors who have bought the units at low NAV when this was a starter. Now if somebody like me invests in it when the market is hovering around 15000, than i am probably buying units at a high price. Now my profit depends upon, how much the NAV can rise from here. I understand that same market dependency lies with any other starter fund also, but does a past performing like sundaram continues to give better returns than a starter fund? What is the economics of this?
Further if everything is dependent on market than will a person investing today will profit only when the market rises further say goes to 17000+ & sustains there. If this is true than probably it is best to invest when the market is at a low level say around 10000. Is this correct?

Regards
CP

 

[mrindia]

Thanks for the comments Adithya & Mr. India. From both the replies that i have received so far, it seems that choice of ELSS funds that i have initially thought of is probably correct.

I would really appreciate, if anyone can clarify one more point to me or suggest link where similar topic is discussed...........

As i am not an investment expert, neither i have too much knowledge on different fund types, so i was wondering whether investing on a fund which have performed really well in past is better than investing on a starter which has a potential to grow. E.g. if we talk of Sundaram BNP paribas tax saver fund which is an open ended fund. It has performed well in future so it's NAV will be high thus giving profit to investors who have bought the units at low NAV when this was a starter. Now if somebody like me invests in it when the market is hovering around 15000, than i am probably buying units at a high price. Now my profit depends upon, how much the NAV can rise from here. I understand that same market dependency lies with any other starter fund also, but does a past performing like sundaram continues to give better returns than a starter fund? What is the economics of this?
Further if everything is dependent on market than will a person investing today will profit only when the market rises further say goes to 17000+ & sustains there. If this is true than probably it is best to invest when the market is at a low level say around 10000. Is this correct?

Regards
CP

As all of us know that market performance cant be predicted.
* In such an unpredictable scene, we can base our investments only on past record (say 5yrs) of a fund. It is a mere assumption that a fund which has given good returns through bull-bear phase over 5-6yrs has more chances to behave so in future too, but there is no guarantee.
* Fund's current NAV never affects ur profit. Its the rate of rise of NAV which counts.
* Its very true that ppl who invested at 10000 level will reap more profit than those who entered at 17000, but its difficult to time the market. So SIP route is desirable.

mr india