Look beyond HDFC Tax Saver

I want to know if ELSS funds are still available for 2012-13, since the DTC wasn’t implemented this time around. I’ve been investing in HDFC Tax Saver – G via SIPs for the last 2 years, however the fund’s performance has not been the best in the last year. Should I start an SIP in Canara Robeco Equity Tax Saver or ICICI Prudential Tax Plan – G instead?
-Ashish Vikas

HDFC Tax Saver is not a disappointing fund. It may not be the best-performing fund over the past 2 years, but it’s not a lousy fund either. HDFC Tax Saver has become a little conservative. It’s a large fund, which is probably driving this approach. And since you’re locking-in your money into an ELSS fund, you might be better off with a more aggressive fund that can deliver potentially higher returns. From that standpoint, you can consider investing in Canara Robeco Equity Tax Saver or ICICI Prudential Tax Plan.

This article was originally published on April 19, 2012.