Tax Saving Funds.. Please Help

[life2007]

Hello!

I have already invested in 3 Tax Saving Funds and do not wish to add more to the list. The 3 funds are Birla Tax Relief 96, SBS Magnum Tax Gain & Sundaram Tax Saver.

Out of the above, only very less amount in Birla Tax Relief 96 and is more or less dormant.

Magnum Tax Gain is not perfoming well , so any new flush of money it may not be a good idea.

Sundaram ratings have also come below from 5 to 4 in value research online.

There are great performing funds in this category like HDFC Tax Saver, DSP TAx Saver etc, I do not think to increase the number of funds.

Would you experts think both Magnum Tax Gain and Sundaram Tax Saver are good pick for this year too? Then I would divide 60% (sundaram) and 40%(SBI).

Do you support this? Please advise.

Regards

Jeet

 

[nikrod]

Hello!

I have already invested in 3 Tax Saving Funds and do not wish to add more to the list. The 3 funds are Birla Tax Relief 96, SBS Magnum Tax Gain & Sundaram Tax Saver.

Out of the above, only very less amount in Birla Tax Relief 96 and is more or less dormant.

Magnum Tax Gain is not perfoming well , so any new flush of money it may not be a good idea.

Sundaram ratings have also come below from 5 to 4 in value research online.

There are great performing funds in this category like HDFC Tax Saver, DSP TAx Saver etc, I do not think to increase the number of funds.

Would you experts think both Magnum Tax Gain and Sundaram Tax Saver are good pick for this year too? Then I would divide 60% (sundaram) and 40%(SBI).

Do you support this? Please advise.

Regards

Jeet

Jeet, Fund ratings should be taken into consideration for over long period. For example if a 4 star rated fund goes down to 3 star & stays there for more than 1-2 year, you can shun that fund. 4 stars is good enough.

I agree with you about Magnum Taxgain. But Sundaram Tax saver is still a good bet. Continue with your current funds and monitor the performance. If Magnum Taxgain performs poorly even in coming years, you can stop investing in it.

PS - No one can predict the good fund picks for this year or any year for that matter.

 

[georgeneil]

I just want to mention that only one tax saving mutual fund in your portfolio will be enough for the tax saving purpose.

 

[life2007]

HI

Thank you for such a valuable advise.

I will stick with Sundaram Tax Saver as of now then.


What exacatly you mean by shun a fund. You mean withdraw even the invested money and put it in good performing fund? OR not to put any new money but allow the old money in there.. just trying to understand the basics pls.


Regards

Jeet

Jeet, Fund ratings should be taken into consideration for over long period. For example if a 4 star rated fund goes down to 3 star & stays there for more than 1-2 year, you can shun that fund. 4 stars is good enough.

I agree with you about Magnum Taxgain. But Sundaram Tax saver is still a good bet. Continue with your current funds and monitor the performance. If Magnum Taxgain performs poorly even in coming years, you can stop investing in it.

PS - No one can predict the good fund picks for this year or any year for that matter.

 

[life2007]

Thank you!

What do you think should be my pick from above 3.. sundaram?

regards

jeet

I just want to mention that only one tax saving mutual fund in your portfolio will be enough for the tax saving purpose.

 

[nikrod]

HI

Thank you for such a valuable advise.

I will stick with Sundaram Tax Saver as of now then.


What exacatly you mean by shun a fund. You mean withdraw even the invested money and put it in good performing fund? OR not to put any new money but allow the old money in there.. just trying to understand the basics pls.


Regards

Jeet

By shunning a fund, I mean selling all the units of that fund. And perhaps putting money in another fund would be next step.

 

[nikrod]

Thank you!

What do you think should be my pick from above 3.. sundaram?

regards

jeet

Yes, I would choose Sundaram from 3 of your funds.