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Should I infuse fresh investment in my existing tax-saving fund?

Dhirendra Kumar tells whether one should continue investing in an average performing tax-saving fund

I had invested in tax-saving fund last year but it hasn't performed well. Should I continue to make tax-saving investment for this year in the same fund or should I opt out and try a different fund?
- Jagjeet

I don't know which fund you are invested in. But most tax-saving funds would have not delivered returns over one year time frame. And it doesn't matter because when you invest in a tax-saving fund you should have at least a five year time frame. Also, in any case one cannot take that money out before the lock-in of three years.

If an individual who does not have any money beyond the 80C limit to invest, continues to invest this Rs 1.5 lakh every year in ELSS, I am sure that it will turn out to be a bonanza for him at the end of 25 years. This can be your retirement corpus.

One just needs to be disciplined and follow the rule of making an SIP. A good or average performing fund doesn't matter.

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