I am 24 and plan to invest Rs 70,000 in tax saving mutual funds. I want my portfolio to have maximum large-cap, followed by mid-cap and least small-cap allocation. What are the best options?-Balpreet Singh
The portfolio allocation strategy adopted by all the tax-planning funds adopts a high allocation to large-cap stocks followed by mid- and small-cap stocks. Ideally, you should look for a fund that has a track record and history. Next, you should look for consistency in the fund's performance returns over various market cycles and time periods. You may consider HDFC Taxsaver, Fidelity Tax Advantage or Canara Robeco Equity Tax Saver fund to invest the Rs 70,000 that you plan to invest.