tax saving in 2012

Currently i am investing 3000 a month in canara robeco equity tax saver(G) and HDFC tax Saver(G)funds each for tax saving Purpose.I heard that from April 2012 there won't be Tax saving MFS, so what about the Future and existence of these ELSS mutual funds after 2012. Also I am planning to invest 4,000 additionally per month in any of the funds like HDFC Top200(G) and DSPBR Top 100 Eqt Reg(G).Please suggest me which could be better.

asked Jul 26 '11 at 13:44 by kks 1111

From 1st April, 2012, Direct tax code (DTC) will come into play and income tax benefit won't be available anymore on equity mutual funds.

Most probably this tax saving funds will be converted to normal equity diversified equity mutual funds after DTC. But three years lock-in will remain as it is.

Both the funds (DSP BR top 100 and HDFC Top 200) are good funds and you may invest in them.

If you have to choose one from it, If it is your first time equity based investment (apart from tax saving), then I would advise to go with DSP BR Top 100 as its a large cap based fund and contains less risk than HDFC Top 200, which is a Large and Mid cap fund.

answered Jul 26 '11 at 21:32 by Pankaj Batra 5.2k320


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Asked: Jul 26 '11 at 13:44

Seen: 2,648 times

Last updated: Jul 26 '11 at 21:32