Fund Selection | Value Research Its important to make the right selection for best results
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Fund Selection

Its important to make the right selection for best results

I need to invest Rs 50,000 for tax saving this financial year. I invested Rs 20,000 in Sundaram Tax Saver on November 26, 2010. Was this a good choice? In which funds do I invest the remaining Rs 30,000?
- Akash Kejriwal




Your Investment            
      Ret (%)      
Fund  2007  2008  2009  YTD  1-Y  3-Y
Sundaram Tax Saver 68.38 -47.58 72.02 0.7 12.14 -0.14
ELSS Category Avg 57.1 -55.79 79.89 0.22 18.01 -2.17
All returns as on January 4, 2011

Sundaram Taxsaver is a 3-star rated fund. After a good run, the fund's performance faltered in 2009. In 2007, it was ranked No. 7 out of the 26 schemes in its category. In the crash the very next year it fell by much less than the category average and took hold of the second slot (29 schemes). The very same defensive portfolio that helped it in 2008 proved to be a chink in its armour in 2009. It failed to capitalise on the rally and fell to No. 25 (out of 32).

Even its current returns do not put it amongst the top performers. Now that you have invested in it, you have no option but to stay put. We suggest you invest the balance amount in any of the equity linked savings schemes (ELSS) that we have suggested in this magazine. You can read the analysis of the six recommended funds from page 48 to 53. But don't do it at one go, attempt to do so via a systematic investment plan (SIPs), though you do not have much time left.




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