which is best ELSS , is 1 lakh on one fund better or 4 funds with each 25k ?

#1
i'm new to mutual funds, time had come to invest 1 lkh on ELSS. Now i have below doubts


  • which are best ELSS and safe funds ? ofcourse all ELSS but if you can categorise less risky among the existing funds.

  • is there any ELSS scheme with debt funds included ?
  • Important thing which confuses me is ... is spending lumpsom on a single fund is better and safe idea or investing on multiple fund ??? i have to invest 1lkh in ELSS, if you would like to suggest me to spend on multiple funds suggest me the best 4 ELSS funds

though asking this question is stupid, what are the chances for me ending up loosing my capital amount. Though my returns are bad i don't want to loose my 1 lkh, you can suggest 5 yrs FD or PPF but i need this money so smaller the locking period better for me.


i was searching for these answers for a long time. Please help me with this.
Thank you very much in advance .
 
Last edited:

TracerBullet

Well-Known Member
#2
i'm new to mutual funds, time had come to invest 1 lkh on ELSS. Now i have below doubts


  • which are best ELSS and safe funds ? ofcourse all ELSS but if you can categorise less risky among the existing funds.

  • is there any ELSS scheme with debt funds included ?
  • Important thing which confuses me is ... is spending lumpsom on a single fund is better and safe idea or investing on multiple fund ??? i have to invest 1lkh in ELSS, if you would like to suggest me to spend on multiple funds suggest me the best 4 ELSS funds

though asking this question is stupid, what are the chances for me ending up loosing my capital amount. Though my returns are bad i don't want to loose my 1 lkh, you can suggest 5 yrs FD or PPF but i need this money so smaller the locking period better for me.


i was searching for these answers for a long time. Please help me with this.
Thank you very much in advance .
Franklin India TaxShield is very consistent and conservative fund with long term record. In general most funds from franklin are good.
Apart from it, other funds that i have used which have good long term record are HDFC Tax Saver and ICICI Pru Tax Plan. An aggressive ( and more volatile) option that invests in smaller companies is Reliance Tax Saver.

Putting lumpsum in Multiple Funds vs single fund will not reduce your risk much. It may only even out bad performance form a fund. If you want to reduce risk, use SIP.
Even then there is no guarantee that you will not loose money over 3 years. Its unlikely given current environment but not impossible. Equity cannot gaurantee that.

If its idle money, my advice is to do SIP ( or lumpsum if you prefer) in Franklin India TaxShield which is conservative. Invest In Direct version of scheme. If you are ready to take extra risk then also consider Reliance.

If its money you cannot loose, then it should not be in equity. Although unless something absolutely drastic happens, ELSS should easily beat FD over 5 years.
I do not know if there is a Balanced (with debt) + ELSS fund, never seen one.

Finally try to understand mutual fund schemes yourself to get an idea of what they do. value research, fundsindia, morningstar are good websites for it.
 
#3
Suggest to invest thru SIPs for longer periods (10 years and more) to get better returns.

You may invest to two to three funds but it is always beneficial to invest on different dates to get better returns; even if in same fund.

Recommendations for Rs. One lakh thru SIP
IPru Tax Plan @ Rs. 3,000/-
HDFC Taxsaver @ Rs. 2,500/-
Axis Long Term Equity Fund @ Rs. 2,500/-

Be patient and focus on goals rather than NAVs.

Always get advise from trusted advisor...

Happy Investing...
:thumb:
 

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