HDFC TaxSaver fund is one of Indian mutual fund industry’s oldest tax saving equity funds. This fund offers section tax deduction benefits under section 80C up to a maximum investment of Rs one lakh. It imposes a lock-in of three years; you cannot withdraw your money from this fund before three years. Launched in 1996, the fund has returned around 35% since inception.
Apart from a blip in its performance in 2007, the fund has done well in both rising and falling markets.