I'm planning to invest through SIP in DSP BlackRock and Reliance taxsaver fund. Can anyone let me know if this is a good choice to start with ?Asked
Both Reliance Tax Saver Fund and DSP Black Rock Tax Saver Fund have performed well over the period of time. And yes, it is a good choice to invest in these funds through SIP.
ELSS is a dedicated mutual fund scheme that allows investors to save tax and also provides an opportunity for long term capital appreciation.
These are the best performer ELSS in last one year:
These all ELSS are available through SIP also.
If you are planning to invest through SIP among DSP Black Rock and Reliance tax saver fund, go with later one which is doing great as compared to former.
Detail analysis of these ELSS funds are show in this video:
Equity linked Savings Scheme is preferred by investors these days because of the tax benefits that an investor gets. An investor will get a tax benefit of upto Rs 150000 under section 80C.
Reliance Taxsaver Fund
3 year return(%) - 14.33
5 year return(%) - 23.21
Mirae Asset Tax saver Fund - -
Axis long term Equity Fund
3 year return(%) - 13.87
5 year return(%) - 22.97
Motilal Oswal MOSt Focussed Longterm Fund
Above mentioned are the returns for few of the top Equity linked Savings Scheme(ELSS). Investment can be done through SIP in any one of the funds or can be divided into 2 to 3 funds as per the choice of the investor. No tax will be charged if the investment is made for 3 years, but it is suggested by the industry experts to keep the amount invested in the fund for 5 to 10 years in order to get a good and healthy return. So it is suggested to investors that reviewing of the returns that an investor is getting should be done and then decision of continuing further with the investment or redeeming it should be taken. The above mentioned funds have been selected because of their consistency in giving returns and their downside risk is very less.