I want to start an SIP in an ELSS fund for tax saving purpose. Kindly suggest a good fund with some comparison with peers? — Ashutosh Jajodia
An equity linked savings scheme (ELSS) or tax planning fund is an instrument that qualifies for a deduction under Section 80C of the Income Tax Act.
While investing in these funds, remember that each systematic investment will be considered as fresh investment and will have to individually complete the three-year lock in period.
This the last time you can enjoy a tax benefit by investing in an equity fund because from April 1, 2012, when the Direct Tax Code (DTC) regime kicks in, tax planning funds will no longer be available to investors.
Two good options in this category are Fidelity Tax Advantage and Canara Robeco Equity Tax Saver.