5 Best & Top performing Tax Saving – ELSS Funds – 2019
There are nearly 50 days to complete this current financial year 2018-2019. The date of Income tax filing will start from the April 1,2019 for the FY2018-19 (Assessment year 2019-20). Tax Rebates and Standard Deduction amount increased in the interim budget of this year, will apply for the next financial year 2019-20. There is no change on Income tax slab and its rate in the recent budget.
Most of us, using the Section 80(C) of Income Tax act during the last minute to get the tax exemption for their Taxable income. So, they are impatient and doing their tax saving investments between January and March every year, it’s not a good thing. The best time to start to invest for tax saving is at the start of the Financial year and it must be related on your Financial Goals.
Under Section 80C of Income tax act, one can save up to Rs. 1.5 lakh in a Financial year. It is also not good to put your whole money in an insurance product for Tax saving purpose. You have to take adequate insurance like taking Term Insurance Policies and get in to Tax Saving instruments(Investments) if any.
We have a variety of Investment opportunities for the Tax exemption (80C) like Public Provident Fund, 5 Years Bank Fixed Deposit, National Savings Certificate(NSC), Kisan Vikas Patra(KVP), Sukanya Samriddhi for Girl Child and Tax Saving Mutual Funds called ELSS (Equity linked savings scheme).
The above mentioned investment avenues are tax saving opportunities under the Section 80C of Income Tax Act. Generally, Tax Saving mutual funds are helping us to get tax benefits with very short lock-in period of 3 years. Tax saving mutual funds or ELSS funds are also giving better returns compared to other 80C Tax saving products in a long run.
For this current year, there are five Top and Best performing Tax Saving(ELSS) Funds in 2019 are,
- Canara Robeco Equity Tax Saver
- Axis Long Term Equity Fund
- Mirae Asset Tax Saver Fund
- Taurus Tax Shield Fund
- Kotak Tax Saver Fund
All these 5 Tax Saving ELSS funds are ranked from 1 to 5 for the current period based on one year returns. While choosing a best mutual funds one should consider about Returns, Rating, Category, Benchmark returns and more important on Risk ratios.
As per Value Research Online and Morning Star, the above funds are ranked and rated on that category. The Minimum investment for this above ELSS funds are Rs. 500/-. Mostly the expense ratio for the Best performing ELSS funds is between 2.0 – 2.75 percent. There is no exit load as it has a 3 year lock-in period for Tax Saving Purpose.
The Fund risk grade comes from Low to Average and the Standard deviation stood at 14.00 – 15.00 points in a Risk Ratio. The Market Capitalization of these five funds are more than 50,000 Crore rupees. The average return of these Tax Saving funds are about 3 to 7 percent in a one year return and the 5 year returns stood at above 15 percent in a compounding.
Axis Long Term Equity Fund and Mirae Asset Tax Saver Fund were given as 5 Star Rating, but it should not only be considered for Investing. You should look out other ratios and Benchmark returns.
Again, i say do not rush to invest in these Tax Saving funds. Decide your Financial Goals and make your investments in the presence of the appropriate Financial Advisor after April 1 or next Financial year 2019-20.
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