Can HDFC Tax Saver Fund Be Considered for ELSS Investment?

Planning taxes for a financial year is an important task which needs to be done with due care. While tax management is tough, the mutual fund provides the simplified process of managing money while saving taxes. The ELSS mutual fund is what we are talking about. ELSS, i.e., Equity Linked Saving Scheme is an equity-asset programme from mutual funds which fall under the tax-saving instruments providing Section 80C exemption. This means that if one has an investment in ELSS up to an amount equal to Rs.1.5 lakh, then one can avail exemption of the same amount from the total taxable income. HDFC Tax Saver Fund is among the best ELSS funds in India which tend to prove the same benefit to the investors. If you are among the those who want to manage their taxes for the financial year in order to save on their hard-earned money from the taxman, then the ELSS funds like HDFC Tax Saver can be of great help to you. But will it suit your tax-saving requirement? Does it provide any other benefit apart from tax saving? Let us take a glance at it right here. HDFC Tax Saver Fund Growth was launched on December 18, 1995, with the primary objective of achieving long-term capital appreciation while saving taxes under Section 80C. It is a growth-oriented scheme which provides growth opportunities to the investors over a period. Being an ELSS fund, it has a three years lock-in period according to which investors money cannot be redeemed for the next three years after purchase. The benefit of the lock-in is that the investors receive tremendous growth in three years with investments which are made in the equity stocks of diversified sectors and companies. The Three Types of Tax-Savings One Attains with HDFC Tax Saver Fund: 1.At the time of investing, the investors gain the benefit of availing exemption up to 1.5 lakh on the total taxable income which further reduces the tax liability.rn2.Further, the income received on the investments in the form of interest or returns are tax-free from the ambit of Indian taxation regime.rn3.At the time of sale of the scheme, the capital gain earned by the investor is also exempted from the tax bracket. Should You Invest in HDFC Tax Saver Fund (G)? If you have the desire to grow your capital into wealth in a loner tenure and want to save tax simultaneously, then you must consider this fund for your portfolio. The absolute returns of the scheme have reached up to 56.0% in the year 2014, and have always been noteworthy in the past five years. The annualised returns of the scheme for one- three- and five-year investments are 34.30%, 19%, and 16.30% respectively. The scheme holds “Fourth” rank in the ELSS category as per CRISIL rating which further demonstrates the efficiency of the plan as to maintain the stable position in the industry. Accordingly, making an investment in this plan would be a better bet for you if you stay invested for a longer tenure even after the lock-in is over so as to gain the market-generated returns. Hence, for an ELSS investment, this plan is a must to be considered for a productive portfolio. By reading this article, you will be able to conclude whether HDFC Tax Saver Growth Fund is suitable for your requirement or not. Further, you will gain knowledge about the ELSS tax saving investments as well.