Best tax saver mutual funds

The best mutual fund saving scheme has been described as the Equity Linked Saving Scheme. This fund is characterized by different features, which makes it quite useful. A description of this is quite useful. Under section 80C, this mutual fund is termed as the best tax saving scheme. This scheme is usually the only pure investment under the named section 80C though at time investors have a tendency to tale the exposure to equity market. This scheme comes with a lock-in period, which is usually of three years. This is the lowest of all mutual funds which are available under the section 80 C. other options usually have a lock-in period of five years.

This fund falls in the under EEE tax rule. The EEE stands for Exempt-Exempt-Exempt. No tax is usually applicable during the contribution, accumulation and the withdraw period. Investors get the tax exemption from the law. Public provident fund and the employee provident funds are the only other options under which investors usually enjoy tax exemption. Dividends which are declared on this scheme are usually tax free in the hands of the unit holder.

You can actually start a SIP in the ELSS. This is with a minimum investment of as low as Rs 500. This is unlike life insurance where you do not have to commit a multi-year investment.

The following include some of the best tax saving mutual funds

Axis Long Term Fund

This fund has a high Apha and a low fund Risk Grade. This fund has been performing quite well for the last decade. In the last five years, this fund has given about a SIP return of around 35%. This is one of the highest in this category.

Franklin India Taxshield Fund

This fund has a consistent performance over the last years. This fund has a very low standard deviation and has been termed as the best for SIP investment and lump sum

ICICI Prudent Tax plan

This fund has an average fund risk grade. For an investor, they will have to put up with the volatility of gaining good returns from this fund. This fund has recorded fascinating performance for the last decade.

Canara Robecco Equity Tax Saver Fund

This fund has a return of 21.7% over the last decade. This is basically the highest among most funds within this category. The standard deviation for this fund is low.

HDFC Tax Saver

This fund has been showing incredible results for long period. Lately it has experience a high level of volatility. It has a low alpha ratio. Most investors who can afford to take higher levels of risk usually prefer HDFC Tax saver.

TATA Tax Saving Fund

This fund has a standard deviation, which is the lowest in this cartegory.