Best ELSS Funds for 2011

Which is the best ELSS Mutual Funds?? In this post I am listing down some of the best MFs which I have find out with the help of Valueresearchonline.com. These are tax saving funds, used by investor for saving tax under Sec 80C upto 1lac.Suitable for those investor who want to invest for longer term with tax saving.

Canara Robeco Equity Tax Saver - G

• One of the oldest Tax Saving Fundwith 18years of Good track record.
• Returns since launch is 15.42% which is good enough in such a long-run.
• Very good performance in last 5 years with 18.12% returns beating benchmark by 7.5%.
• Good 24.93% return in year 2010.
• Well diversified amount Giant, Large, Mid and Small cap companies makes its a good fund overall.
• More Concentrating towards Giant (40.75%) makes it less risky.

HDFC Tax Saver -G

• This fund has not shout much about its performance and not even appreciated among its peers but has given a best long term  record and even has ability to put all the tax saving funds in shame.
• Oldest Tax Saving Fund with 15 years of excellent track record.
• Return since launch 32.77% which is no doubt unmatched achievement for Tax Saving Fund.
• Last 5 years return are 12.58% beating becnhmark by just 2%.
• Well diversified among Giant, Large, Mid and Small cap companies.
• Becoming more aggressive by increasing its allocation in Midcap Funds.

 Fidelity Tax Advantage - G

• This fund is new fund just 5 year old but with good track record.
• Return since launch 15.39% which is good enough for new fund.
• Good performance in last 5 years with 15.96% returns beating benchmark by almost 5%.
• Good 29.24% return in year 2010.
• Well diversified amount Giant, Large, Mid and Small cap. But bit aggressive fund as 35% invested in Midcap companies.Which makes this fund bit risky.

Sahara Tax Gain -  G

• One of the oldest Tax Saving Fundwith 14years of Good track record.
• Return since launch 27.16% which is excellent in such a long run.
• Good performance in last 5 years with 13.44% returns beating benchmark by almost 3%.
• Good 20.42% return in year 2010.
• Well diversified amount Giant, Large, Mid and Small cap. But its an aggressive fund with 48.74% invested in Midcap & Small cap companies.Which makes this fund risky then other fund in same category.

Religare Tax Saver -G

• This fund is new fund just 5 year old with average track record. but shows a potential for better performace.
• Return since launch 12.8% which is good enough for new fund.
• Good performance in last 3 years with 11.10% returns beating benchmark by almost 8.5%.
• Good 22.13% return in year 2010.
• Diversified Fund among Giant, Large, Mid and Small cap.
• A little aggressive fund with 48.84% portfolio in just 3 sectors of  Finance, Energy and FMCG.

Reliance Tax Saver - G

• This fund is new fund just 5 year old with average track record.cut comes under top 10 funds in this category.
• Return since launch13.41% which is good.
• Average performance in last 5 years with 10.88% returns just beating benchmar.
• Good 22.49% return in year 2010.
• Diversified Fund among Giant, Large, Mid and Small cap. Very aggressive fund with 57.49% in Mid and Small cap companies.
• Aggressive fund with 48.28% portfolio in just 3 sectors of  Automobile, Engineering and Financial.
  

HDFC Long Term Advantage - G 

• Oldest Tax Saving Fund with 11 years with good track record.
• Return since launch 28.32% which is no doubt unmatched achievement for Tax Saving Fund.
• Last 5 years return are 10.71% equal to becnhmark.
• Good 28.37% return in year 2010.
• Well diversified among Giant, Large, Mid and Small cap companies with 52% in Giant companies. So less risky fund.

Note : This blog is not for recommendation purpose, hence, must not be treated as an encouragement to invest in above listed funds. The decision of investment in any above listed funds solely lies with the reader/investor.

Do you think all Tax Saving Mutual Funds are same...

Main purpose of this blog post is to explain investors that all ELSS or TAX SAVING Mutual Funds are not one and the same. Investor who are investing in ELSS schemes might well be aware that ELSS scheme comes under Diversify Equity Mutual Funds but they may not aware that ELSS Scheme also have Aggressive and Safer & Balanced approach. 

• Aggressive Approach - In this approach ELSS mainly bet on small and mid cap stocks and hence they have more return potential with bit of more risk. 
• Safer and Balanced Approach - In this ELSS mainly bet on Giant and Large cap stocks, which are more safer than mid and small cap stocks.

Investors needs to understand this that they should invest in that ELSS Scheme which meet there risk appitete. It is also important that they should not invest entire money in just 1 ELSS Scheme which cover both the approaches (i.e Aggressive and Safer & Balanced).

Some Top Performing ELSS MFs with there category:- 

Aggressive 

ICICI Prudential Tax Plan-G

Reliance Tax Saver - G

Sahara Tax Gain - G

Safer & Balance

Canara Robeco Equity Tax Saver -D

HDFC Tax Saver - G

HDFC LT Advantage - G

Magnum Tax Gain -G

So, next time think twice before investing in ELSS Scheme. :)

Note : This blog is not for recommendation purpose, hence, must not be treated as an encouragement to invest in above listed funds. The decision of investment in any above listed funds solely lies with the reader/investor.