For the past three years, I have been investing Rs 15,000 per month in Reliance Tax Saver Fund. My investments gave good returns in the first few years. However, until today, my investment worth Rs 4,60,000, stands at a loss of Rs 30,000. I wish to discontinue my investments in this fund and invest in a better performing ELSS fund. Please suggest some good ELSS funds.
- Aditya
There are many tax saving funds available, as every AMC offers one. But with regard to Reliance Tax Saver Fund first, I would like to mention that the fund provides superior returns vis-a-vis its peers during market high. This is because the fund has exposure in small-cap stocks, which have the potential to generate high returns in a bullish phase but the opposite holds true during downtrends. So, if you have a long-time horizon, you can continue with the same fund because the money invested during a bad phase of the market generates good returns in the long term. But if you wish to invest in conservative funds which deliver returns in a much stable manner, then you can invest in funds like Axis Long Term Equity Fund and Mirae Asset Tax Saver.
This article was originally published on March 22, 2019.
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