Tax Saving ELSS Mutual Fund SIP Query

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Supra said:
ok so finally started the investment:

1. Canara Robeco tax Saver -D : 2000/- per mnth
2. HDFC Tax Saver -D : 3000/- per mnth

Got the folio nos in just 1 day and its reflecting in CAMS online also w/o any issues :)
Now in FundsIndia I have set an Alert SIP and I can pay in on or before 25th , the monthly SIP towards these funds and I will be allocated the units accordingly on the same day. Now my thinking is that the lock in is for 3 years from the allocation date....so basically each months SIP will be locked in for 3 years. So while taking out the money I guess I have to wait for a total of 3 more yrs from the end of the 3 yrs SIP as the last SIP at the end of 3 yrs have to wait 3 yrs more. Isn't it that way and I guess the units can be redeemed only after the 1st SIP (or thereafter) has completed 3 yrs lock in.

How are these MIPs....any one has any idea on them ?

I dont know about fundsindia, but in general you need to pay the amount on the date of your SIP, (y way of PDC / Auto Debit) you are alloted units same day with NAV of the date of transaction if before 3.30 pm.

Your each SIP is new investrment and is locked for 3 years, so after end of 3 years from first SIP installment every SIP installment will finish their lockin period every month.

SO if you invested 36 months, from 37th month onwards your ech installments can be withdrawn respective date till 72nd month.

Now about MIP :
MIPs mutual funds with balanced theme, with an AIM to generate regular monthly income for investor (not guaranteed).

MIP also have equity component ranging rom 5 - 30% depending upon fund mandate and AMC.

They are good way of building wealth over a very long period of time.

You can use MIPs best by transfering systematically a fixed amount to an equity fund, this way you also earn a decent return on your principal amount.

the returns of MIPs range from 9 - 14 % depending upon fund, amc, time, portfolio, interest rates and likewise.

Two scenarios you can choose :

1. STP from MIP : you put x amount lumpsum in MIP, then transfer a fixed amount to an equity fund of your choice of same AMC.

(recently i saw calculation for relince MIP with STP to reliance grwoth, it showed a 100000/- invested in growth option of MIP with 1000 STP every month to Reliance Growth, still the value of initial amount was 109000/- while 60000/- was already transferred to equity und) We still have not calculated returns of equity fund to this.

2. Dividend swipe to equity :
You choose a MIP from one AMC and shift the dividend earned to an equiy fund of same AMC.

This option reduces your risk, gives you decent returns on your capital, and your interest by way taking risk earns you more returns.

For 1st option you can start with 25k (perhaps this is the minimum requirement for STP)

for 2nd scenario to be effective you need to put atleast 200k. (as some AMC require minimum 1000 INR for additional purchase).

I have put 4.5 l in BSL Monthly Income Plan and dividend switch to BSL Frontline Equity Fund. It generates around 3k as dividend every month, the investment is still new so cant comment about it for long term but perhaps this is the way to go.

A point to ponder, you have to select the MIP which does not have exit load, otherwise the returns wont be good. Or you have to wait till cutoff for exit load is over.
 
Please share about the new funds I can invest into. I see ELSS as a lucrative and tax saving option rather than me investing in PPF.
 
Sorry to bump an old thread, but I wanted some insight on latest updates.
I have read articles about ELSS, can anyone suggest which one should I go for? I am doing this for firs time.
 
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