Dhirendra Kumar talks about the charm of investing in ELSS funds
I have started investing in tax-saving funds of Kotak, Axis and DSP. My time horizon is 10 years. Do these funds make for a good choice?
All these funds are good ones in the ELSS category. Within this category, some funds have been able to perform well in full market cycles and these three come under that set.
I feel there is no need to have three funds and one or two funds will be enough. Having said that, it's difficult to predict which among these three will be able to perform better in a time horizon of 10 years.
Further, the charm of investing in ELSS is to get a deduction of up to Rs 1.5 lakh under Section 80C. So, just check and decide whether you need to avail as much deduction, as much amount you are investing in these funds. If not, then you have various other investment options available.