How to select the best tax-saving mutual fund for different age groups?
- Bharat Kumar
Don't over-engineer this. Most tax-saving funds can be classified into aggressive ones and not-so aggressive ones. But all tax-saving funds are invested completely in equity. There are set of funds which are largely invested in largecap stocks and there are funds which are little more venturesome. They invest in smaller companies and try to maximise returns. I would say when you are investing in a tax-saving fund and you are getting locked-in for three years, get aggressive. Maximise your returns. Don't think of three years lock-in. Think of five years or more. Take a five year view, get aggressive with your tax saving investment and don't look at the values in the interim. And if you are averaging your investments through an SIP, it will translate into superior return because you will be buying on dips as well.
This article was originally published on August 23, 2018.
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