Tag - Section 80C

December 2013

Top 10 ELSS Mutual Fund Investments for 2014!!!

Section 80C investments, ELSS, Mutual Funds investments, Tax saving , Tax planning

Most of the investors have begun to ask about investing in ELSS Mutual funds as we are nearing March. As you are aware, ELSS investments can be claimed as deduction u/s 80C (up to a max of 1 lac)

Here is the list of top performing ELSS Mutual funds.The list is based on past 5 years performance One can also choose and invest based on past 3 years performance. Since the ELSS as locked in products for 3 years, it does not make a lot of sense to compare or invest based on performances of less 1 year.

Top 10 ELSS based on 5 years performance are :
Scheme Name
1. ICICI Pru Tax Plan 25%
2. Canara Robeco Equity Tax Saver 22.4%
3. Quantum Long Tax Saving 22.2%
4. HDFC Long Term Advantage 21.8%
5. Franklin India Tax Shield 21.1%
6. L&T Tax Advantage 20.9%
7. Reliance Tax Saver 20.6%
8. IDFC Tax Advantage 20.4%
9. DSPBR Tax Saver 20.3%
10. Birla SL Tax Relief 96 19.7%

Happy Investing…..


November 2012

Section 80C Tax saving investments

section 80C, tax saving investments, ELSS, PPF, NSC, Senior Citizen Savings, Pension Funds,

Income during an income year of an Individual is assessed for tax under Income Tax Act 1961. It is general tendency of assesses to commence savings during the end of the Income Year, mostly to seek exemption from Income Tax thus reducing Income Tax liability. They have to combine their savings with financial planning

Section 80C 
Under section 80C, a deduction from taxable income is allowed subject to a limit of 1Lac.

The following investment routes can be used to avail this tax benefit.

  1. Life insurance premium paid for traditional products.
  2. Unit-linked insurance plans (ULIPs).
  3. Pension plans.
  4. Repayment of the principal component of home loan.
  5. Employee provident funds (EPFs).
  6. Equity linked saving schemes (ELSS).
  7. Tuition fees paid for children.
  8. Five-year tax saving bank deposits.
  9. Public provident funds (PPFs).
  10. National savings certificates (NSCs).
  11. Senior citizen savings schemes (SCSs).
  12. Stamp duty and registration charges.
  13. Infrastructure bonds.
  14. Pension funds.
  15. Post office time deposit – five years.

Tax Planning involves making investments with the objective of minimizing the tax liability and maximizing returns. Ideally, one should carefully  plan and invest through the year rather than at the end of the year in order to take the tax advantages.


July 2010

Why you should never invest in ELSS , Dividend Reinvestment Scheme !

Why you should never invest in ELSS , Dividend Reinvestment Scheme, Section 80C, Mutual Fund Investment, Tax Saving Planning.

Equity Linked Savings Scheme (ELSS) is an instrument which many investors use to get advantage in Section 80C, Rs 1 Lac, deduction in Income.

There is a 3 year lock in in these schemes.

If you choose the Dividend reinvestment Scheme, then the reinvested portion gets locked again for 3 years from the date of dividend.

Even if the schemes declare dividends once every three years , part of your investments can be locked in for ever.


1.  Do not opt for Dividend Reinvestment Scheme in case of ELSS

2. In case you already have invested in such an option in ELSS , then change the option to Dividend Payout. (This is provided you are lucky that the dividend has not yet been declared) (Pls note that Fund House will not allow you to change to Growth)