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Ask Mint | On investments

Ask Mint | On investments
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First Published: Sun, Apr 12 2009. 11 18 PM IST
Updated: Sun, Apr 12 2009. 11 18 PM IST
I would like to start investing under 80C for fiscal 2009-10 in the Tax Saver mutual funds (equity linked savings schemes, or ELSS) from April. I want to take up the option of systematic investment plan (SIP) for Rs4,000 per month. Please suggest how I should divide the funds, i.e., how many funds I should opt for and how much should be the division for each fund. Also suggest how long I should keep the funds (I know that the lock-in period for the Tax Saver mutual funds is three years).
Anindya
It’s a good idea to start SIP for tax saving purpose and this is the right time too.
It would be better if you divide your money into two schemes. I think SIP for Rs2,000 in SBI Magnum Taxgain and another Rs2,000 in Sundaram BNP Paribas Tax Saver would optimize your investment for a period of three years. You should review your portfolio on expiry of the lock-in period.
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First Published: Sun, Apr 12 2009. 11 18 PM IST