Most of the people are very confused about where to invest Income Tax exemption investment (80c)? Hope you will get the idea after reading the below option.
Instead of Investing one time at year end. We will suggest you to start SIP of MF Tax Saver. So, your Risk is minimised in case of SIP rather than one time Investments.
We will suggest following 5 ELSS funds and reasons for the same.
Invest in Birla Century SIP (Monthly) and get Free Insurance (100 times of your Installment).
If you had invested Rs. 5,000 monthly sip in Birla Sun Life Tax Relief’96 since 1996 (60,000 per year) then Value of the same will be 93,44,130/- today in the span of 14years (Details given in the table below).
2,200% Dividend (Rs.220/-) declared since inception (from last 14 years)
Birla Sun Life Tax Relief-96 adjudged “World’s Best-Performing Equity Fund” by Lipper for 14 year best Performance out of 3006 Mutual Funds.
There are 3 major benefits of investing in the Birla Sun Life Tax Relief ’96
You will get Income Tax Benefits + Insurance + High returns in the above scheme.
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BSE 200 |
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BSL Tax Relief ‘96 |
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Total Amount invested
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8,60,000 |
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8,60,000 |
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Current Value of investments |
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29,01,670 |
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93,44,130 |
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Fund Performance Comparison as on 16.07.10 NAV : Rs. 11.54
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2. Sundaram Tax Saver :
Rs.28.50 dividend (285%) declared during last 6 years
NAV : Rs. 11.63 as on 16.07.10
Seven Star Gold Award Winner 2009 from ICRA for last 3 yrs performance.
CPR-1 Ranking by CRISIL.
5* Rating by Value Research.
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1 Year |
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3 Year |
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5 Year |
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Since Inception |
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Sundaram BNP Paribas Tax Saver
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31.01% |
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12.05% |
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23.12% |
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17.03% |
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Benchmark BSE200 |
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30.61% |
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6.55% |
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19.30% |
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14.10% |
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3. HDFC Tax Saver :
Rs.34.00 dividend (340%) declared during last 5 years
NAV : Rs. 62.96 as on 16.07.10
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1 Year |
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3 Year |
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5 Year |
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Since Inception |
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HDFC Tax Saver
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48.62 |
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11.84 |
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21.20 |
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25.88 |
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Benchmark BSE200 |
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30.61% |
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6.55% |
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19.30% |
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14.10% |
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4. CANARA ROBECO Equity Tax Saver :
Rs.17.00 dividend (170%) declared during last 5 years
NAV : Rs. 20.79 as on 16.07.10
No.1 Best ELSS Tax Saver – 5 year Category.
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1 Year |
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3 Year |
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5 Year |
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Since Inception |
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Canara Robeco Equity Tax Saver
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44.98 |
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16.47 |
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27.87 |
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10.17 |
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30.61% |
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6.55% |
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19.30% |
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14.10% |
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5. ICICI Prudential Tax Plan :
Rs.14.50 dividend (145%) declared during last 5 years
NAV : Rs. 20.17 as on 16.07.10
No.1 Best ELSS Tax Saver – 1 year Category.
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1 Year |
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3 Year |
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5 Year |
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Since Inception |
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ICICI Prudential Tax Plan
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54.44 |
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11.76 |
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18.48 |
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26.95 |
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Benchmark BSE200 |
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30.61% |
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6.55% |
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19.30% |
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14.10% |
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Why ELSS (Mutual Fund) is better tax saving instrument than others because of followings :
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80C Investment options |
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Tax Free Income |
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Tax Free Maturity |
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Loack in Period |
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Annual Return |
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Mutual Fund ELSS |
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√ |
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√ |
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3 years |
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15% - 25% |
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PPF |
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√ |
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√ |
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6 years |
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8% |
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NSC |
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No |
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No |
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6 years |
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8% |
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5 Yrs Bank Deposit |
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No |
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√ |
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5 years |
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8% |
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Life Insurance |
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√ |
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No |
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So, Grab this opportunity of Investing in bad market conditions as history shows investing in bad times and selling the same in good times always give huge profits.
As you know this Income Tax exemption is in addition to 80C Investment. You can save your Income tax by following donation
Tax benefit from donations for Indian Tax Payers as under :
u/s 80G of the IT Act up to 50% of your donation is deductible
u/s 35AC of the IT Act 100% of your donation is deductible from your income
u/s.35(1)(2) of the IT Act 125% of your donation is deductible from your income.
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