Best Funds to consider in ELSS (equity Linked Savings Schemes)

The investment in ELSS (Equity linked Savings Scheme)  is eligible for availing tax benefits under Section 80C of Income Tax Act,1961 read with circular no.9/2005 dated 30.11.2005 issued by Ministry of Finance, subject to the l imits and conditions specified in Section 80 C

ELSSs of mutual funds have a three-year lock-in period and, as such, three-year or longer duration returns of a scheme are considered for performance review.

But the sad thing for ELSSs funds is that under Direct tax code, MFs will no longer be a tax-saving option i.e
The Direct Taxes Code , which will come into effect from April 2012, does not have ELSS funds in the list of 80C deductions. However, investments made in these funds during this fiscal will continue to get tax benefits.

But as per Amfi CEO H N Sinor, "We have been trying with the Revenue Secretary to get some leeway on investments in equity-linked savings scheme", hope we may hear positive news related to ELSS Funds.

                                Fidelity Tax Advantage - G

                               Religare Tax Plan Growth

                      Franklin India Tax Shield Growth

                           HDFC Tax Saver:

                                                 Source: Value Research