Best mutual fund for tax saving
On account of the pandemic, the due date for filing the income tax returns for FY 2019-20 (AY 2020-21) is extended to November 30, 2020, as a part of COVID-19 relief measures. Therefore, you can grab this opportunity to invest in an equity-linked saving scheme (ELSS) for saving tax under section 80C. Here is a list of the best ELSS you can consider investing in for tax saving purposes.
|
Top 5 ELSS: Returns Profile (in per cent)
|
|
Funds
|
1 Year
|
2 Year
|
3 Year
|
5 Year
|
10 Year
|
|
Canara Robeco Equity Tax Saver Fund
|
8.48
|
4.19
|
6.76
|
7.52
|
10.52
|
|
BOI AXA Tax Advantage Fund
|
16.35
|
-0.16
|
5.05
|
7.59
|
9.36
|
|
BNP Paribas Long Term Equity Fund
|
4.43
|
2.26
|
2.60
|
4.91
|
11.09
|
|
Invesco India Tax Plan
|
6.21
|
-0.58
|
4.56
|
7.06
|
11.75
|
|
Union Long Term Equity Fund
|
5.75
|
0.49
|
2.70
|
3.55
|
-
|
|
Top 5 ELSS: Risk Profile
|
|
Funds
|
Sharpe
|
Sortino
|
Beta
|
Standard Deviation
|
|
Canara Robeco Equity Tax Saver Fund
|
0.32
|
0.45
|
0.82
|
27.23
|
|
BOI AXA Tax Advantage Fund
|
0.61
|
0.85
|
0.73
|
24.42
|
|
BNP Paribas Long Term Equity Fund
|
0.18
|
0.26
|
0.78
|
25.47
|
|
Invesco India Tax Plan
|
0.24
|
0.34
|
0.90
|
29.07
|
|
Union Long Term Equity Fund
|
0.23
|
0.33
|
0.87
|
28.14
|
ELSS is one of the best avenues available for tax saving purposes. In fact, it is designed in a way to help you save tax along with long-term capital appreciation. While, the other avenues such as public provident fund (PPF), National Pension System (NPS), etc. are designed purely as a retirement saving tool rather than as a tax-saving tool.
Further, if you are an aggressive investor then, opt for Canara Robeco Equity Tax Saver Fund and if you are a conservative investor, then you can go for BOI AXA Tax Advantage Fund.