Top 10 Mutual Fund (ELSS) schemes to save taxes

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The main purpose of investing for most investors is tax saving. Equity linked saving schemes (ELSS) are those mutual fund schemes that help you save taxes as well as generate decent returns. But, how do you separate the wheat from the chaff? Here is a list of few ELSS schemes that you should consider for investing




The main purpose of investing for most investors is tax saving. Equity linked saving schemes (ELSS) are those mutual fund schemes that help you save taxes as well as generate decent returns. But, how do you separate the wheat from the chaff? Here is a list of few ELSS schemes that you should consider for investing.

The true measure of ELSS scheme’s worth is consistency. Following four ELSS schemes make the cut based on their 5 years, 3 years and 1 year performance put together (see tables). These schemes have remained in the Top 10 ELSS schemes for all these durations :

• Canara Robeco Equity Tax Saver
• HDFC Taxsaver
• Sahara Tax Gain
• Birla Sun Life Tax Relief 96

Investment in ELSS schemes qualify for deductions under section 80C. So, you could max your returns by investing the entire Rs 1 lakh limit of your Section 80C deductions through ELSS investments alone. However, be cautious as ELSS schemes have a risk grade higher than other investments that qualify under section 80C such as life insurance, PPF, NSC, etc.

Another important factor to consider is the lock-in period. ELSS schemes have a 3 year lock-in, that means you can not sell the investment before this period.

Top 10 Tax Saving Mutual Funds (ELSS)
The following 3 tables lists the Top 10 ELSS Schemes in descending order of their 5 years, 3 years and 1 year returns. This may help you in selecting the best ELSS scheme for your needs.

ELSS Schemes Ranking based on 5 Year Returns

Rank	Fund Name	Return (%)			NAV for Plan		NAV as on Date
		1 Year	3 Year	5 Year	Dividend	Growth
1	Magnum Taxgain	93.29	10.05	32.03	44.4	59.05	11-Jan-2010
2	Canara Robeco Equity Tax Saver	97.08	19.21	28.82	20.29	22.28	11-Jan-2010
3	Sundaram BNP Paribas Taxsaver	81.83	15.64	28.04	15.03	43.92	11-Jan-2010
4	HDFC Taxsaver	106.03	11.2	27.09	62.36	200.48	11-Jan-2010
5	Sahara Tax Gain	96.88	16.63	25.99	18.99	33.33	11-Jan-2010
6	ICICI Prudential Tax Plan	120.85	9.38	24.52	18.51	124.12	11-Jan-2010
7	Franklin India Taxshield	86.18	13.3	23.67	32.85	181.84	11-Jan-2010
8	Birla Sun Life Tax Relief 96	111.64	10.74	22.39	88.66	10.99	11-Jan-2010
9	Franklin India Index Tax	79.82	9.33	21.39	40.2	n/a	11-Jan-2010
10	Principal Personal Tax Saver	93.44	9.76	21.22	91.44	n/a	11-Jan-2010

ELSS Schemes Ranking based on 3 Year Returns

Rank	Fund Name	Return (%)			NAV for Plan		NAV as on Date
		1 Year	3 Year	5 Year	Dividend	Growth
1	Taurus Tax Shield	106.56	22.69	18.84	23.93	32.76	11-Jan-2010
2	Canara Robeco Equity Tax Saver	97.08	19.21	28.82	20.29	22.28	11-Jan-2010
3	Sahara Tax Gain	96.88	16.63	25.99	18.99	33.33	11-Jan-2010
4	Sundaram BNP Paribas Taxsaver	81.83	15.64	28.04	15.03	43.92	11-Jan-2010
5	Religare Tax Plan	91.49	15.54	n/a	12.86	15.53	11-Jan-2010
6	Fidelity Tax Advantage	91.58	14.11	n/a	16.61	18.5	11-Jan-2010
7	Franklin India Taxshield	86.18	13.3	23.67	32.85	181.84	11-Jan-2010
8	HDFC Taxsaver	106.03	11.2	27.09	62.36	200.48	11-Jan-2010
9	Birla Sun Life Tax Relief 96	111.64	10.74	22.39	88.66	10.99	11-Jan-2010
10	Magnum Taxgain	93.29	10.05	32.03	44.4	59.05	11-Jan-2010

ELSS Schemes Ranking based on 1 Year Returns

Rank	Fund Name	Return (%)			NAV for Plan		NAV as on Date
		1 Year	3 Year	5 Year	Dividend	Growth
1	ICICI Prudential Tax Plan	120.85	9.38	24.52	18.51	124.12	11-Jan-2010
2	Birla Sun Life Tax Relief 96	111.64	10.74	22.39	88.66	10.99	11-Jan-2010
3	ING Tax Savings	107.18	-0.97	17.56	13.09	26.54	11-Jan-2010
4	DBS Chola Tax Saver	106.86	3.63	n/a	14.28	15.37	11-Jan-2010
5	Taurus Tax Shield	106.56	22.69	18.84	23.93	32.76	11-Jan-2010
6	HDFC Taxsaver	106.03	11.2	27.09	62.36	200.48	11-Jan-2010
7	Canara Robeco Equity Tax Saver	97.08	19.21	28.82	20.29	22.28	11-Jan-2010
8	Sahara Tax Gain	96.88	16.63	25.99	18.99	33.33	11-Jan-2010
9	DSPBR Tax Saver	95.48	n/a	n/a	11.46	15.4	11-Jan-2010
10	HDFC LT Advantage	93.77	8.01	20.66	38.26	117.3	11-Jan-2010

Data Source : Value Research Online

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