Top ELSS Fund for 2009 Tax Planning

The Taxman is calling again and investors are finding it difficult to decide if they should invest in a ELSS or not. Last Year has been a year of erosion of the NAV’s of the mutual funds and Tax Saving Schemes were no exception. Investors are not sure if they would get positive returns from Mutual funds. However, if you think from an Investment perspective of Three Years (lock-in period for ELSS investments), I would suggest that this is perhaps a good time to invest for a long term.  Here are the Top 5 Funds based on their performances -

 

However, one would see a return back to old favorites like PPF and FD’s and even NSC’s this time around. The lure of equity markets has surely taken a backseat and safety of capital has come to forefront of Investors. Investment Guru is of the view that ELSS still would emerge as a high return asset class for Tax saving purpose from the current levels and hence investors may consider allocating a part of their tax planning kitty to tax saving mutual fund schemes.