4 Replies to “Is this is right time to invest in Tax Saving Mutual funds with SIP?”

  1. I think any fund that has a primary objective to tax savings is a bad investment.

    Educated professional advisors will tell you that taxes should not be the primary concern when it comes to investing. Making money should be the #1 goal.

  2. Yes buddy. This is the best time to invest in the market. Especially via the SIP route. SIP’s are best because of 2 reasons

    1. You dont need to shell out a lumpsum from your pocket
    2. You average out the cost of purchase. You get more units when the market is down and less when the market is up. so the average cost of purchase is cheaper than buying one time.

    With the market currently languishing at never before depths, investing now would help you accumulate a lot of units in your kitty.

    Benefit of going for ELSS funds – You get tax benefit 🙂

    ELSS funds have been able to give a returns of around 20% or even more every year for the past few years. couple it with the 30% tax savings which works out to a staggering 50% or more every year. hence it is a very good investment option.

    Important point:
    Do not put all your money in one fund. Split up your money across 2 or 3 well managed fund.

    Say you plan to invest 5000 rupees per month, you can split it up among 3 funds as Rs. 1500, Rs. 1500 and Rs. 2000.

    All the best. happy investing…
    mail me at [email protected] if you need any more details.

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