10/09/2017 mutual fund: Will mutual fund schemes offer me tax-free returns?

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ECONOMICTIMES.COM | Updated: Jun 28, 2017, 05.55 PM IST

I am 35 years old. I have been investing Rs

20,000 via monthly SIP in Axis Bank
BSE -0.65 % Long Term Equity Fund for three

years now. I want to start another monthly

SIP of Rs 20,000. My investment horizon is
25 years and I have moderate risk. Is there
any mutual fund scheme that can give good
return with income tax exempt on capital
gains on maturity? SPOTLIGHT
--Suraj Kaungal
0
Comments Sponsored
You seem to be totally clueless about mutual funds investing. One, Axis Long Equity»Large Cap
Term Equity Fund is a tax-saving scheme or Equity Linked Savings Scheme
(ELSS). Investments in ELSS qualify for tax deductions of up to Rs 1.5 lakh
under Section 80C of the Income Tax Act. You are investing Rs 2.4 lakh every
year in the scheme. Your investments above Rs 1.5 lakh will not fetch you any
income tax break. Also, ELSS comes with a mandatory lock-in period of three
years. You will not be able to sell them before the lock-in period is over. Invest
only the required amount under Section 80C in tax savings instruments like
ELSS. Invest the rest of the money in open-ended equity mutual fund schemes T
to create wealth over a long period.
DSP BlackRock Top 100 Equity
A
Direct Plan-Growth
You do not have to pay long-term capital gains tax on investments in equity
★★★★★ Figures in %
mutual fund schemes. If you hold your equity mutual fund investments for more
1M 3M 6M 1Yr 3Yrs
than a year, you do not have to pay any taxes on your returns. This is one of
0.44 5.80 14.92 10.80 9.86
the advantages of investing in equity.
Since you are totally new to mutual fund investing, hire a mutual fund advisor to
help you with your investments. Do not take unnecessary risks with your START SIP
investments. You may lose your hard-earned money if you pick the wrong
products.

(If you have any mutual fund queries, message ET Mutual Funds on
Most Read Most Shared Most Commented
Facebook. We will get it answered by our panel of experts.)
Should I sell my flat and invest in mutual funds?
Watch "Madam Secretary" Order now. Cash on
exclusively on Amazon delivery available with free A five minute guide to SIP or Systematic Investment
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10/09/2017 mutual fund: Will mutual fund schemes offer me tax-free returns? - The Economic Times

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Should I invest in sovereign gold

bonds?
ECONOMICTIMES.COM | Aug 23, 2017, 05.50 PM IST

I am 37 years old. I work in a BPO. My

monthly salary is approximately Rs 45,000. I
have been investing in the following
schemes:
DSP BlackRock T.I.G.E.R. Fund - Regular
(G): Rs 1,000 per month (since Sept 2008)
0 HDFC Top 200 Fund - Regular (G): Rs 2,000
Comments
per month (since Sept 2012)
The total market value of my investment is approximately Rs 4,25,000. I Most Read Most Shared Most Commented

am planning to increase my SIPs with an additional amount of Rs 5,000

(total Rs 8,000 per month). Should I continue to invest in these two funds?
How much should I invest in each of them? Which other equity schemes
will be better for me to invest via SIPs? I have a moderate to high risk
profile. I have a long-term investment plan for my child's education and
marriage and my retirement. I also have savings in my PPF account. I pay
yearly premiums for my LIC and healthcare policies. Should I invest some
amount (Rs 10,000 to Rs 15,000) in Sovereign Gold Bonds Scheme issued
by the central government? Please advise.
Should an average investor look beyond multicap
mutual funds?
Stock market headed for a correction, say mutual
fund advisors
Should I sell my flat and invest in mutual funds?
A five minute guide to SIP or Systematic Investment
Plan
Concentrated investing done successfully is tough:
Gautam Sinha Roy of Motilal Oswal AMC

--Umesh Bapat More »

Suresh Sadagopan, Founder, Ladder7 Financial Advisories, responds:

You should stop your SIPs in both these funds and pick other funds to invest.
I have listed a few schemes:

DSP BlackRock Focus 25 Fund

Birla Sun Life Frontline Equity Fund
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10/09/2017 mutual fund: Will mutual fund schemes offer me tax-free returns? - The Economic Times

Franklin India Prima Plus Fund

HDFC Balanced Fund
Franklin India High Growth Companies Fund
Quantum Long Term Equity Fund

Start investing via SIPs in any two of these funds. The amount accumulated
through your previous SIPs can too be shifted to some of these funds. Keep in
mind the capital gains and exit loads.

I would suggest you to not to invest in Sovereign Gold Bonds Scheme as their
yields are expected to be low. Stick with good equity mutual funds. If necessary,
you may invest in some debt products as well.

(If you have any mutual fund queries, message on ET Mutual Funds on
Facebook. We will get it answered by our panel of experts.)

READ MORE ON » Risk Mutual Funds Mutual Fund Market India Gold ET

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10/09/2017 mutual fund: Will mutual fund schemes offer me tax-free returns? - The Economic Times

NEXT STORY

Is my portfolio good?
ECONOMICTIMES.COM | Aug 23, 2017, 04.59 PM IST

I have invested in the following schemes:

HDFC Taxsaver Fund - Direct plan

Kotak Select Focus Fund - Direct plan
Birla Sun Life Small and Midcap Fund -
Direct plan
DSP BlackRock Opportunities Fund - Direct
plan
1 Birla Sun Life Balanced 95 Fund - Direct plan
Comments
Is my portfolio good?
Most Read Most Shared Most Commented
--Samarth Khandelwal
Should an average investor look beyond multicap
mutual funds?
Vishal Dhawan, Founder, Plan Ahead Wealth Advisors, responds:
Stock market headed for a correction, say mutual
fund advisors

Should I sell my flat and invest in mutual funds?

Your scheme selection is fine. Keep in mind that the equity markets look richly
valued from a historical price to earnings perspective. You need to have at least A five minute guide to SIP or Systematic Investment
Plan
a 10-year horizon and be prepared for volatility. If you are not comfortable with
that, you can bring down the equity exposure in your portfolio. Mid and Concentrated investing done successfully is tough:
Gautam Sinha Roy of Motilal Oswal AMC
smallcap funds essentially look even more richly valued, and you may evaluate
exiting the Birla Sun Life Small and Midcap Fund. More »

(If you have any mutual fund queries, message on ET Mutual Funds on
Facebook. We will get it answered by our panel of experts.)

READ MORE ON » Wealth Volatility Mutual Funds Mutual Fund Markets ET

Earnings

Comments (1) Add Your Comments

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10/09/2017 mutual fund: Will mutual fund schemes offer me tax-free returns? - The Economic Times

NEXT STORY

Should I continue with my SIP or exit?

ECONOMICTIMES.COM | Aug 23, 2017, 01.49 PM IST

Should I invest through SIP in Franklin India

Prima Plus Fund (Growth) or should I exit?
--Raj Kumar S

Apoorva Vora, Founder and CEO,

Finolutions WealthCare LLP, responds:

What I understood from your question is that

0 you are an existing investor. SIPs are like long-term commitments and require
Comments
less of churn, if at all. Your decision to exit is skewness of one particular
Most Read Most Shared Most Commented
scheme in your portfolio. Presuming that you are a long-term investor, you may
continue with the SIP without the temptation of coming out unless there is a Should an average investor look beyond multicap
mutual funds?
structural problem with the fund you have invested.
Stock market headed for a correction, say mutual
fund advisors

Should I sell my flat and invest in mutual funds?

A five minute guide to SIP or Systematic Investment

(If you have any mutual fund queries, message on ET Mutual Funds on Plan
Facebook. We will get it answered by our panel of experts.)
Concentrated investing done successfully is tough:
READ MORE ON » Systematic Investment Plan SIP Mutual Funds Mutual Fund Gautam Sinha Roy of Motilal Oswal AMC

Investment India Franklin India Prima Plus Fund More »

Also Read
How are these SIPs?

Are these funds good for investing via SIPs?

Should I continue with these SIPs?

Some outstanding funds to invest via SIPs

Comments Add Your Comments

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Is it good to invest in these schemes?

ECONOMICTIMES.COM | Aug 16, 2017, 04.44 PM IST

I am 30 years old. I am investing in the

following funds:
HDFC Equity Fund (G): Rs 2,500 (April 2017)
HDFC Mip-Cap Opportunities Fund (G): Rs
1 500 (April 2017)
http://economictimes.indiatimes.com/mf/analysis/-will-mutual-fund-schemes-offer-me-tax-free-returns/articleshow/59354720.cms 5/10
10/09/2017 mutual fund: Will mutual fund schemes offer me tax-free returns? - The Economic Times
1,500 (April 2017)
HDFC Capital Builder Fund (G): Rs 1,000
(Aug 2016)
I am investing with a long-term plan of
0 around 30 years. Is it good to invest in these schemes?
Comments
--Srikanth Ch
Most Read Most Shared Most Commented

Deepesh Mehta, Certified Financial Planner, responds: Should an average investor look beyond multicap
mutual funds?

The three funds you have selected are good and are managed by experienced Stock market headed for a correction, say mutual
fund advisors
fund managers. Continue with these funds and stay invested and continue your
SIPs even during corrections in the market. Should I sell my flat and invest in mutual funds?

A five minute guide to SIP or Systematic Investment

Plan

Concentrated investing done successfully is tough:

Gautam Sinha Roy of Motilal Oswal AMC
(If you have any mutual fund queries, message on ET Mutual Funds on
Facebook. We will get it answered by our panel of experts.) More »

READ MORE ON » SIP Schemes Mutual Funds Investment Funds

Ask ET Mutual Funds

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Have I picked the right schemes?

Top Mutual Funds Top NPS Top ULIPs Top ETFs Top Listed Bonds

EQUITY HYBRID DEBT ALL

SCHEME NAME RATING 1M 3M 6M 1 YR 3 YRS

(%) (%) (%) (%) (%)

Motilal Oswal MOSt Focused ★★★★★ 2.49 8.09 23.48 30.13 27.51
Multicap 35 Direct-G

Motilal Oswal MOSt Focused ★★★★★ 2.41 7.85 22.87 28.95 26.28
Multicap 35 Reg-G

Aditya Birla SL Advantage Direct- ★★★★★ 2.06 9.33 22.58 21.51 21.16
G

FEATURED

DSP BlackRock Opportunities ★★★★★ 0.57 5.52 15.46 18.03 17.31 Start SIP
Direct Plan-Growth
Multi Cap

- Top rated funds sorted on 3 years return. » More

- Returns less then 1 year are absolute and above 1 year are annualised.

Comments Add Your Comments

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10/09/2017 mutual fund: Will mutual fund schemes offer me tax-free returns? - The Economic Times

NEXT STORY

Are these funds good for investing via

SIPs?
ECONOMICTIMES.COM | Aug 16, 2017, 03.45 PM IST

I started SIPs in the following funds:

SBI Bluechip Fund
IDFC Focused Equity Fund
Tata India Consumer Fund
L&T Emerging Businesses Fund
Are these funds good for investing via
0 SIPs? I want to invest for more than five
Comments
years and get high returns.
--Satish Kumar Most Read Most Shared Most Commented

Should an average investor look beyond multicap

Vishal Ramaswamy, a mutual fund advisor, responds: mutual funds?

Stock market headed for a correction, say mutual

You have chosen two largecap funds, one small and midcap fund and one fund advisors
thematic fund. I generally avoid investing in thematic funds. I would suggest you
Should I sell my flat and invest in mutual funds?
to choose another small and midcap fund such as Mirae Asset Emerging
Bluechip Fund, Canara Robeco Emerging Equities Fund or HDFC Mid-Cap A five minute guide to SIP or Systematic Investment
Plan
Opportunities Fund. This might definitely help you to maximize returns.
Concentrated investing done successfully is tough:
Gautam Sinha Roy of Motilal Oswal AMC

More »

(If you have any mutual fund queries, message on ET Mutual Funds on
Facebook. We will get it answered by our panel of experts.)

READ MORE ON » SIP SBI Mutual Funds Mutual Fund L&T India Facebook

Also Read
How are these SIPs?

Should I continue with these SIPs?

Some outstanding funds to invest via SIPs

Should I continue with my SIP or exit?

Comments Add Your Comments

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Where should I invest for 15 days?

ECONOMICTIMES.COM | Aug 14, 2017, 03.14 PM IST

I would like to invest Rs 15,000 in mutual

fund only for 15 days. Kindly suggest which
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10/09/2017 mutual fund: Will mutual fund schemes offer me tax-free returns? - The Economic Times

scheme should I invest? I have invested Rs

35,000 in L&T Midcap Fund- Direct (G), but I
want to switch to some other fund. Please
suggest which fund should I switch to? I
want to trade in F&O. Please suggest.
--Rupesh Hedaoo
1
Comments
Chokkalingam Palaniappan, Director, Prakala Wealth Management,
Most Read Most Shared Most Commented
responds:
Should an average investor look beyond multicap
mutual funds?
As a retail investor, it is better to focus on long term wealth creation than
trading. I would advise you to desist from F&O. Stock market headed for a correction, say mutual
fund advisors

For a horizon of 15 days, you can look at liquid funds such as BNP Paribas Should I sell my flat and invest in mutual funds?
Overnight Fund or ICICI Prudential Liquid Plan. A five minute guide to SIP or Systematic Investment
Plan
You have not mentioned the reason of switching from L&T Midcap Fund to
Concentrated investing done successfully is tough:
some other fund. It is a good performing fund in its category. If you want to Gautam Sinha Roy of Motilal Oswal AMC
switch to less riskier funds in equity or debt, you can switch to anyone of the
More »
following funds:

L&T India Large Cap Fund (Equity- largecap)

L&T Income Opportunities Fund (Debt- credit opportunities)

(If you have any mutual fund queries, message on ET Mutual Funds on
Facebook. We will get it answered by our panel of experts.)

READ MORE ON » Wealth Switching Mutual Fund Investment Mutual Fund Liquid Funds

L&T India

Top Mutual Funds Top NPS Top ULIPs Top ETFs Top Listed Bonds

EQUITY HYBRID DEBT ALL

SCHEME NAME RATING 1M 3M 6M 1 YR 3 YRS

(%) (%) (%) (%) (%)

Motilal Oswal MOSt Focused ★★★★★ 2.49 8.09 23.48 30.13 27.51
Multicap 35 Direct-G

Motilal Oswal MOSt Focused ★★★★★ 2.41 7.85 22.87 28.95 26.28
Multicap 35 Reg-G

Aditya Birla SL Advantage Direct- ★★★★★ 2.06 9.33 22.58 21.51 21.16
G

FEATURED

DSP BlackRock Opportunities ★★★★★ 0.57 5.52 15.46 18.03 17.31 Start SIP
Direct Plan-Growth
Multi Cap

- Top rated funds sorted on 3 years return. » More

- Returns less then 1 year are absolute and above 1 year are annualised.

Comments (1) Add Your Comments

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10/09/2017 mutual fund: Will mutual fund schemes offer me tax-free returns? - The Economic Times

NEXT STORY

Should I invest in just one scheme or

various schemes?
ECONOMICTIMES.COM | Aug 14, 2017, 02.56 PM IST

I am 32 years old. I am willing to invest Rs 1

lakh for 15-20 years. Should I invest in one
scheme or various schemes? Please
suggest schemes which will be the best to
invest, expecting a return of 14 per cent.
--Subhadeep Jaha
0
Comments
Rishabh Parakh, Chief Gardener and
Founder Director, Money Plant Consulting, responds: Most Read Most Shared Most Commented

Should an average investor look beyond multicap

It seems, you are referring to one-time investment of Rs 1 lakh for 15-20 years. mutual funds?
Since you are investing for a long period, you may invest in pure equity funds. I
Stock market headed for a correction, say mutual
would suggest you to diversify the amount into two or maximum three funds fund advisors
(one largecap and two midcap funds).
Should I sell my flat and invest in mutual funds?

Since the stock market is at a higher level now, you can invest the amount via a A five minute guide to SIP or Systematic Investment
Plan
Systematic Investment Plan (STP) of four to five months in SBI Bluechip Fund
(largecap scheme), Mirae Asset Emerging Bluechip Fund and Canara Robeco Concentrated investing done successfully is tough:
Gautam Sinha Roy of Motilal Oswal AMC
Emerging Bluechip Fund (midcap schemes).
More »

(If you have any mutual fund queries, message on ET Mutual Funds on
Facebook. We will get it answered by our panel of experts.)

READ MORE ON » Systematic Investment Plan Stock Market SBI Mutual Funds

Mutual Fund Market Facebook

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