Aug 23, 2016 3 min read

Top 5 Tax Saving Funds of 2016

Everyone wishes to save their taxes by making a proper management. But still many a time, they fail. Here we are providing you with the investment options that would not only help you in creating wealth but would save the tax amount as well.
Do you have the zeal to earn high-yielding returns? If yes, then you must know which schemes can provide you with the same. Here we are presenting the list of top-five tax savings funds which are the must-haves for everyone’s portfolio.

At the end of an accounting year when it comes to do the assessment of income and filing returns, people try to find different solutions to save their taxes. But do they get successful? Certainly not! The reason is, like any other planning, the tax planning and management also needs to get started at the early stage only. So, to save your taxes in 2017, you must initiate now and find the ways to sort out the heavy tax burden.

As we know mutual fund ELSS (Equity-Linked Savings Scheme) provides us with a programme to manage our capital in a way to achieve the investment goals as well as tax savings. The investments made in the plans of this category fall under the tax exemption model of the Income Tax Act. So, we must add the tax saving funds to our portfolio to gain the dual benefits of high returns with tax deductions. Below-mentioned is the list of the best ELSS funds of 2016, which must be added to your portfolio to make a worthwhile investment:

  1. Birla Sun Life Tax Relief 96: It aims to generate long-term capital appreciation by investing 80% assets into the equity-related securities while the balance assets into debt and money market instruments to provide diversification. It is ranked 1st by CRISIL in the ELSS category for quarter ended June 2016, which is the proof of its well-being. This scheme offers highest returns on investments made for a long tenure, generally longer than 3 years. Furthermore, it has provided better returns and tax benefits to the investors which have helped them fetch the desired results.
  2. Axis Long-Term Equity Fund: This scheme aims to generate regular and long-term capital growth from a diversified portfolio. It invests in the companies that have strong growth and sustainable business model. It is ranked 2nd under the ELSS category by CRISIL for the quarter ended June 2016, which shows its market-held possession. The average returns generated by this plan are comparatively higher when compared with the average returns of its category. Furthermore, it provides easy flexibility to the investors and thus is among the most preferred ones.
  3. Franklin India Tax Shield Fund: It is a plan that caters the dual benefits of saving taxes and growth potential opportunities. It is ranked 2nd by CRISIL for the quarter ended June 2016 under the ELSS category. It is no wonder to say that this scheme has the capacity to build a fortune for the investors. This plan provides the highest returns in the case of investment held for 3 years or more. Furthermore, the tax benefits provided by this scheme are upto INR 1.5lacs under section 80C of the Income Tax Act.
  4. DSP BlackRock Tax Saver Fund: This plan is a product from the renowned brand, i.e., DSP BlackRock Mutual Fund. It holds 2nd rank under the ELSS category by CRISIL rankings for the quarter ended June 2016. It has been providing high-yielding returns to the investors which can be evaluated well by their returns percentage records. To provide medium to long-term growth to the investors, it invests in a well-diversified portfolio which helps to create worth of the investment.
  5. Reliance Tax Saver (ELSS): This plan is the product of Reliance Mutual Fund, which is among the most prominent AMCs in India. It has been allotted 3rd rank in the ELSS category by CRISIL for the quarter ended June 2016. It has the assets under management(AUM) amounted to Rs.5490 crores as on 31st July 2016 which is majorly invested in the equities. It has been performing immensely in the investment market since its inception which is well proved by its NAV performance. To cater the long-term needs of various investors, this scheme offers growth-oriented returns and helps in appreciating the capital worth.

Hence, the plans as mentioned above are the ones which shall definitely help you in managing your taxes for the assessment year 2017-2018. So, instead of waiting for the year end, start your investment in the tax saving scheme now and fetch the aspiring returns.

If you are planning to make a better investment and need mentorship to prepare a worthwhile portfolio, then you can avail our services at MySIPonline, where we have every possible mutual fund investment solution for you.