ELSS (Equity Linked Saving Scheme) General Discussions

[life2007]

Hello Vicky and Others.....

Last year after good suggestions and guidelines, I picked up Magnum Gain 93 & Birla Sunlife Tax Relief 96 for tax saving purpose. I had then put 70K in PPF and balance 30K in the above ELSS propotionately. i.e in short... 70% PPF, 15% in 1st ELSS & balance 15% in 2nd ELSS.

Since I was investing for the first time in my life and for that purpose being under tax slab for the first time, I had consciously decided the above ratio.

This year too looks good and I bet my earnings would be more or less as equal to last year. I am planning to change the ratio to 50-25-25. ie. 50% in PPF, 25% in one ELSS and balance 25% in second ELSS.

I am thinking to stick with SBI Magnum Tax 93, but am not sure about the other one ie Birla Tax Relief 96.

Vicky and others.. Please advise if can stick to both of the above ELSS funds or there are better options around. I tried best to anaylse myself with all those parameters.. beta, alpha and so on.. but I think I am dumb to an extent as of now.. as everything is going above my head

Thank you once again

Regards

Jeet

 

[suriya]

Hi Jeet ,
I am also newbee in Mutual funds. My friend suggested me to go through SIP mode and he advised me to take Sundaram BNP Tax Saver (an ELSS). This is a little thing from my side

Regards,
Suriya

 

[life2007]

Hi Suriya...

"Little Things" added up to Bigger things in life . Thank you for your input.

I shall wait for opinion from some more experts like Vicky, Mr. India and others before deciding which one should I go for....

At this point, I would like to share a point informed by a dear friend of mine. He said never invest in small SIPs for ELSS like to the tune of 1K. A moderate amount like 5K would be fine. The reason being there is a lock in period of 3 years and each SIP you invest will have to be unused for min 3 years. I dont know how it is going to affect, but shared with you nevertheless...

Thanks again

Regards

Jeet

Hi Jeet ,
I am also newbee in Mutual funds. My friend suggested me to go through SIP mode and he advised me to take Sundaram BNP Tax Saver (an ELSS). This is a little thing from my side

Regards,
Suriya

 

[mrindia]

Hello
Ur last yr choices in ELSS category were vry good. I also opted for Birla SL Tax Rel96 as my sole ELSS fund. But the current bear phase proved to be the testing time for most of the managers.
No. of ELSS u go for this time, depends on ur portfolio. If u have 4-5 funds already in ur kitty, only one ELSS should serve. Birla SL TR96 wont be a good choice.
Again both Magnum Taxgain & Sundaram taxsaver r good five star rated funds. Current gloom in the market has churned up vital stats of most of the funds. If we compare the 2, Sundaram TS has definitely handled the fall well c.f. MagnumTG. Maybe due to sitting over cash/increased exposure to debt! But this has proved to be a nice move in protecting investors money; for this very judgement/research we pay for.
You may prefer Sundaram TS over Magnum TG this year if u need a single ELSS.
Comments from peers r welcome!

mr india

 

[life2007]

Thank you Mr. India for the input.

So here we go

1st Preference : Birla Tax Relief 96
2nd : Sundaram Tax Saver
3rd : Magnum Tax Gain 93

Where are the other learned experts. Your opinion matters to newbies like me. Please put in few lines.......

Thanks

Jeet

Hello
Ur last yr choices in ELSS category were vry good. I also opted for Birla SL Tax Rel96 as my sole ELSS fund. But the current bear phase proved to be the testing time for most of the managers.
No. of ELSS u go for this time, depends on ur portfolio. If u have 4-5 funds already in ur kitty, only one ELSS should serve. Birla SL TR96 wont be a good choice.
Again both Magnum Taxgain & Sundaram taxsaver r good five star rated funds. Current gloom in the market has churned up vital stats of most of the funds. If we compare the 2, Sundaram TS has definitely handled the fall well c.f. MagnumTG. Maybe due to sitting over cash/increased exposure to debt! But this has proved to be a nice move in protecting investors money; for this very judgement/research we pay for.
You may prefer Sundaram TS over Magnum TG this year if u need a single ELSS.
Comments from peers r welcome!

mr india

 

[simphony80]

Hi I am new to ELSS, so bear with me if I sound inane.
1. All the schemes in ELSS are mutual funds? Can we not invest in individual stocks using ELSS?
2. Can someone share with me on where did they open the brokerage and demat accounts for the ELSS purpose?
3. What is the range of charges does a brokerage account carry, if you could include fine prints like hidden costs, taxes, services charges etc that will be great? All I am looking for are ranges and the corresponding brokers
4. What is the range of charges does a demat account carry, if you could include fine prints like hidden costs, taxes, services charges etc that will be great? All I am looking for are ranges and the corresponding demat account providers
5. Are there any big Govt banks (SBI etc) offering demat and brokerage accounts?

Thanks in advance for the knowledgeable input.

 

[mrindia]

Hi I am new to ELSS, so bear with me if I sound inane.
1. All the schemes in ELSS are mutual funds? Can we not invest in individual stocks using ELSS?
2. Can someone share with me on where did they open the brokerage and demat accounts for the ELSS purpose?
3. What is the range of charges does a brokerage account carry, if you could include fine prints like hidden costs, taxes, services charges etc that will be great? All I am looking for are ranges and the corresponding brokers
4. What is the range of charges does a demat account carry, if you could include fine prints like hidden costs, taxes, services charges etc that will be great? All I am looking for are ranges and the corresponding demat account providers
5. Are there any big Govt banks (SBI etc) offering demat and brokerage accounts?

Thanks in advance for the knowledgeable input.

Hi simphony80!
All ur assumptions except 1st are incorrect.
ELSS are MFs.
No D-Mat/Trading acc is required for investing in ELSS.
If you invest through ' MF agent' a usual 2.25% entry load is deducted. In 'direct' applications there is no entry-load.

Happy Investing!

mr india

 

[HarpreetWalia]

Greetings,

I am also new to the world of investing and to this gr8 site. Well people who are looking for which one to invest for this year, might want to take a look into following two schemes:

1) SBI Magnum Tax Gain Scheme - 93 (G)
2) Sundaram BNP Paribas Taxsaver (G)

How do you guys rate these two schemes in present scenario?

One more question, I am still kinda confused on how the end amount will be calculated? I mean when one scheme shows (say 40% return) at the end of 3year, how does this exactly gets calculated? (Is this compounded annually?) Just to clarify I am talking about investing via SIP.

Also, can someone please shed some light on the question raised by Suriya. I mean is it better to invest around 5k through SIP in ELSS schemes rather than say 1K? As far as know, this will only be because of getting higher returns at the end of lock in period? Any other suggestions?

 

[simphony80]

Hi simphony80!
All ur assumptions except 1st are incorrect.
ELSS are MFs.
No D-Mat/Trading acc is required for investing in ELSS.
If you invest through ' MF agent' a usual 2.25% entry load is deducted. In 'direct' applications there is no entry-load.

Happy Investing!

mr india

Thanks for the update Mr. India! But as per the following post, ELSS can be other than MFs. Could you please clarify or point me to an authentic link that contains the details? Thanks for your time!

http://www.traderji.com/brokers-demat-matters/24993-umpteenth-post-demat-brokerage-accounts.html

 

[kalwarik]

for quantum elss there is no load
make small amount of allocation to it