I am 26 and fall under the 20 per cent tax bracket now. Last year I had invested Rs 40,000 in Franklin India Taxshield to save tax. Which fund should I invest in this year?
Simran Bagga, Mohali
Franklin India Taxshield is a an ELSS (Equity Linked Savings Scheme), which are tax-saving mutual funds that you can use to save income tax of up to Rs 1.5 lakh under Section 80C in a financial year. An ELSS fund has a lock-in period of three years and invests a majority of its portfolio in equities as spelt in its investment objective. Franklin India Taxshield is a good fund to invest in with a long performance track record and history to support further investment. Instead of looking for another fund, you could invest additional sum in this fund itself or DSPR Tax Saver, which is another ELSS that features in the OLM Elite list for Beginners. Both these funds are hand-picked for beginners.
