Top TaxSaving MutualFunds 2009

Under the Income Tax Section of Government of India, Mutual Fund Investments are subjected to tax exemptions. Hence during an investment, most investors include tax-saving funds or ELSS (equity linked saving schemes) in their portfolio to get the added benefit of income-tax deduction.

Please do ur own research before u come to a decision and don’t blame me if they don’t perform according to ur expectations. Also note due to the market crash most mutual funds have lost loads of money on investments made during last 2 yrs and some have even lost half the capital invested.* standard disclaimers apply.

While NAV (Net Asset Value) is a true reflection of your Mutual fund value, it should not be treated to compare among peers nor should it be a major factor in analyzing a Mutual Fund because of the following reasons:

1) It simply depends on the MF alone on how it has diversified its portfolio and 2 independent MF's can have substantial difference in their NAV's.
Example: an FMCG fund NAV cannot be compared to a Small Cap fund on the basis of their NAV's as the stocks are different, weighatges are different...

2) Fund performance, track record, Fund Manager, Sectorial weightage, Stocks.... are some of the major factors to analyze before u buy in any MF.

Name of the Fund	Risk Rating	Overall rating
SBI Magnum Taxgain	2	1
Sundaram BNP Paribas Taxsaver	1	2
HDFC Long term Advantage Fund	4	3
HDFC Tax Saver	1	4
Franklin India Taxshield	3	5

Tax Saving Mutual Funds India generally maintains the following rules of the SEBI while granting tax benefits on their schemes -

• Any special tax benefits for the mutual fund company and its shareholders (only section numbers of the Income Tax Act and their substance should be mentioned,without reproducing the text of the sections).
• Tax benefits are to be declared under the column of "objects of the offering".

For further information on Tax Saving Mutual Funds India, visit www.sebi.gov.in.

Words of caution

Please note that investing in equity or equity mfs at this moment can be a bit risky, thanks to worldwide recession. Due to heavy uncertainty noone can time the bottom of the markets or guage the trend . Please break up ur investments and dont invest in lumpsome.