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Last Year For ELSS

Remember that this is the last financial year when you can avail tax deductions from ELSS investments

I am interested in investing in ELSS funds to save taxes and also get good returns. I am looking to invest a total of Rs 30,000 in these funds. Can you please help me by advising the best fund to invest in from Canara Robeco Equity Tax Saver, Fidelity Tax Advantage and HDFC Tax Saver?
Sandeep Trivedi

Performance
Scheme  Rating  3-yr ret (%)  5-yr ret (%)
Canara Robeco Equity Tax Saver * * * * * 31.28 15.79
Fidelity Tax Advantage * * * * 25.64 12.73
HDFC Tax Saver * * * * 24.78 8.96
Rating as on September 30, 2011, Returns as on October 20, 2011

If you are looking to gain from equity investments and also take advantage of tax benefits on investments; tax planning funds are the best investment for you. Investments in ELSS have a three-year lock-in and one can invest up to Rs 1 lakh each financial year in these to qualify for tax benefits under Section 80C.

All the funds that you have short-listed to invest in have a proven track record and are safe to invest in, however do remember that this is the last financial year when you can invest in these to avail tax deductions, as under the new tax regime from April 1, 2012 this category no more falls under the list of instruments that offer tax deductions on investments. Make use of the next few months to stagger your investments than investing the entire Rs 30,000 in one go.



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