Part I: Want your money to grow at 108%?
Part II: The best tax saving funds
With just around four months to the end of the financial year, some new tax saving funds have hit the market. These are referred to as Equity Linked Savings Schemes.
ELSS are open-ended diversified equity mutual funds, which means they invest in stocks of different companies and various sectors. The three funds will invest anywhere from 80 per cent to 100 per cent of their entire holdings in equity. The balance, if any, will be cash or fixed return investments (debt).
Investments in these funds qualify for a deduction under Section 80C of the Income Tax Act and have a lock-in period of three years.
During the new fund offering, you can buy the units at Rs 10.
Here are two new ELSS funds.
HSBC Tax Saver Equity Fund
Options: Dividend payout, Growth
Minimum investment: Rs 500
Benchmark index: BSE 200
Entry load: 2.25% for investments below Rs 5 crore
Exit load: Nil
Fund manager: Mihir Vora
Offer opened: November 20, 2006
Offer closes: December 15, 2006
DSPML Tax Saver Fund
Options: Dividend payout, Dividend reinvestment, Growth
Minimum investment: Rs 500
Benchmark index: S&P CNX 500
Entry load: 2.25% for investments below Rs 5 crore / 1% for a SIP
Exit load: Nil
Fund manager: Anup Maheshwari
Offer opened: November 27, 2006
Offer closes: December 21, 2006
Part I: Want your money to grow at 108%?
Part II: The best tax saving funds
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