I started investing Rs 2,000 in 2015 through SIP in DSPBR Tax Saver to save taxes. Compared to a few other funds of similar orientation, this one has not fared as favourably. Is it wise to quit or should I continue to hold this fund?
Raghavendra Kini, Mangalore
Launched in January 2007, this fund posted a 20.64 per cent returns in the last one year and 15.87 in a three year timeframe. Compared to its peers and benchmark, it has done a good job. A word of advice; while your efforts to save taxes by investing in an ELSS is commendable, the investment works best if you invest lump sums in them and not SIPs. The reason: when you invest through SIPs in tax planning funds, every instalment in the scheme is locked-in for three years from the date of investment. This limits you from exiting the fund entirely if performance is poor or exit over a fairly long period. Preferably, you should stop SIPs in this ELSS and have lump sum investments instead.
