Prajna Capital

10 best Tax Saver Funds for 2016
Investing Mutual Fund in Child Name and Benefits
ELSS SIP after three years

10 best Tax Saver Funds for 2016

Posted: 29 Sep 2016 04:19 AM PDT

Invest Tax-Saver Funds Online

Here are the top performing equity linked savings schemes, or tax-saving funds. Below are the filters used to arrive at them.

Top performers: 5-year annualized returns
Category: Equity Linked Savings Scheme (ELSS)
Schemes: Open ended
Growth plans (dividend plans excluded)
Regular plans (direct plans excluded)

Axis Long Term Equity: 19.70%

This fund made its mark in 2010 and 2011. It topped the chart in 2010 with a return of 30% and fell the lowest the very next year when the market tanked. Not only is it consistently a top quartile performer, it is often the best in its category (2010, 2011, 2013).

BNP Paribas Long Term Equity: 16.49%

From 2007 to 2010, the fund consistently underperformed the category average. Anand Shah joined the AMC in 2011 and the change was immediately evident. Since then the fund has delivered above average returns and is now quite a contender in the category.

Reliance Tax Saver (ELSS) Fund: 16.03%

You can expect volatility from this fund but it rewards investors who stay in for the long haul. Its 3-, 5-, and 10-year returns have not disappointed. Volatile performer but does deliver eventually. Currently, a little over half the portfolio is in mid, small and micro caps.

Franklin India Taxshield: 15.15%

This fund delivers by not losing ground when the market tanks. If one looks at the returns over the past decade, it has been known to underperform the category average in good markets. On the flip side, it has fallen much below the category average during bear phases. But, by and large, it is a steady performer. Its below-average performance is never abysmal and it manages to hold its own in a market carnage.

Religare Invesco Tax Plan: 14.97%

This one won't deliver an astounding return, but it is definitely stable and dependable. Over the past 9 calendar years, it underperformed the category average just once, that too by just 0.64%.

Birla Sun Life Tax Plan: 14.50%

This fund has a longer history than its sibling mentioned above, but underperformed the category average in its first four years (2007, 2008, 2009, 2010). Since then the fund has improved its performance and did well last year. The fund has a higher cash allocation than the above one but market cap allocations are similar and so are the top holdings in the portfolios.

Birla Sun Life Tax Relief 96: 14.06%

After a searing performance in 2009, the fund faltered the next two years. Since then it has been a fairly consistent performer.

DSP BlackRock Tax Saver: 13.97%

The fund tends to fall more than the category average during down markets (2008, 2011), but otherwise beats the average. However, last year Apoorva Shah, who was responsible for the fund's performance, relinquished fund management responsibility.

ICICI Prudential Long Term Equity: 13.93%

Sporadically, the fund puts up some excellent numbers as it did in 2009 (a return of 112%) and 2012 (37.63%). At other times, it also manages to do fairly well. This multi-cap offering is fairly stable and delivers.

IDFC Tax Advantage: 13.78%

In its track record of 7 years, the fund has periods where it underperforms the category average, that too by a noticeable margin. The fund shot to prominence in 2013 when it was the third best performer in the category. Unfortunately, the very next year it underperformed the category average by 8%. Thus far, the fund has not been consistent but delivers over the long term.

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Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds
Top 10 Tax Saving Mutual Funds to invest in India for 2016
Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund
2. Axis Tax Saver Fund
3. Franklin India TaxShield
4. ICICI Prudential Long Term Equity Fund
5. IDFC Tax Advantage (ELSS) Fund
6. Birla Sun Life Tax Relief 96
7. DSP BlackRock Tax Saver Fund
8. Reliance Tax Saver (ELSS) Fund
9. Religare Tax Plan
10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online
Invest Online
Download Application Forms
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
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Leave your comment with mail ID and we will answer them
OR
You can write to us at
PrajnaCapital [at] Gmail [dot] Com
OR
Leave a missed Call on 94 8300 8300

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Investing Mutual Fund in Child Name and Benefits

Posted: 29 Sep 2016 02:32 AM PDT

Mutual Fund Investment to Benefit a Minor Child

You can make investments in MFs in your child's name to meet their long-term goals such as higher education and wedding

1. Can I make a mutual fund investment in the name of a minor child?

Yes, you can make an investment in any scheme of any mutual fund in the name of a minor child. The minor shall be the first and the sole holder in a folio. No joint holder will be al lowed in a folio held by a minor. Guardian in the folio should either be a parent (i.e. father or mother) or a court ap pointed legal guardian.

Minor investments are identified by the date of birth of the investor, so when you make an in vestment you have to provide the child's date of birth and age. You will have to give a copy of age proof namely a copy of the document viz. birth certificate, passport copy , etc. evidencing date of birth of the minor and relation ship of the guardian (natural or legal guardian) with the minor. This needs to be provided while making the first investment or while opening a folio.

2. Can I do an SIP, Systematic Transfer Plan (STP) in the name of a minor?

A mutual fund will register instructions by an investor like SIP / STP in the folio held by a minor.

This instruction will be valid only till the date of the minor attaining majority, even though the instructions may be for a period beyond that date.

3. What happens when the minor child becomes a major or attains 18 years of age?

When a minor becomes a major, all transactions standing instruction, systematic transactions etc. will be suspended. The folio will be frozen for operation by the guardian from the date of minor attaining majority . Prior to the minor attaining majority, the AMC mutual fund will send a notice to unit holder at their registered correspondence address advising the minor to submit, on attaining majority, an application form along with prescribed documents to change the status of the folio from `minor' to `major'. Along with this, KYC (know your customer) acknowledgment letter of unit holder becoming major should also be provided.

4. Can I change the guardian once the investment has been made?

In case of change in the guard ian of a minor, the new guard ian must be a natural guardian (i.e. father or mother) or a court-appointed legal guardian and should submit the requisite documents namely -

(a) No objection certificate (NoC), or consent letter, from existing guardian or court order for new guardian, in case the existing guardian is alive.

(b) KYC acknowledgment letter of the new guardian should also be provided.

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Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

Leave a missed Call on 94 8300 8300

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ELSS SIP after three years

Posted: 29 Sep 2016 12:14 AM PDT

Invest ELSS SIP Online

Equity Linked Savings Schemes (ELSSs) or tax saving mutual fund schemes come with a mandatory lock-in period of three years. The lock-in period is applicable to every Systematic Investment Plan (SIP) instalment in the ELSS. You can redeem a SIP investment only after it completes the lock-in period of three years.