I am planning to invest a lump sum amount of Rs 10,000 in five to six different ELSS’ for tax saving purpose for FY12-13. In which ELSS funds should I put my money and on what basis should I take a decision?
- Tarun Kumar
You appear to be one of those investors who take investment decisions at the fag end of the financial year. With very less time to go, you have little choice but to invest in lump sum in ELSS. We have been an ardent votary of phased tax planning investments through the year than jump at the last moment. What baffles us further is your desire to invest in 5-6 different ELSS to save tax. Diversification does not happen with numbers, it happens with style, with allocation across market capitalisation and sectors. You should consider investing in a couple of funds at best, which are well-diversified than look at 5-6 schemes. You can select from our recommendations such as Canara Robeco Equity Tax Saver, Franklin India Tax Shield, Quantum Tax Saving, Reliance Tax saver and ICICI Prudential Tax Plan.
This article was originally published on April 29, 2013.
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