Tuesday, May 13, 2008

Investment Advise

Posted by: japa on ( 13-May-08 08:32 )

Hello all,

I'm a employee with an MNC and am interested in investing a total of 24000 Rs for the whole year in a Tax saving MF. From the money control board and from some of my personal relations i understood that Principal MF is slightly better than SBI Magnum in this category. But i wanted to take your help in deciding which is better of these two. Though it's a small amount to be invested, this is the first time i'm trying it in MFs, so please suggest me which one should i go for.


My reply was :

Dear Anil Japa,

Principal Personal Tax Saver Fund is slightly more baised towards mid-caps, so it tends to be more volatile whereas SBI Magnum Tax Gain 93 Fund is veered towards Large Caps., so in effect both are good for long term but SBI Magnum corpus is bloated and may struggle to give high returns so you can invest in Principal Personal Tax Saver Fund.
You can also consider investing in DSPML Tax Saver Fund and Lotus India Tax Plan. Both the funds are relatively new and just about one year old but both the funds have given above market returns and especially DSPML Portfolio contains excellent future multi-baggers and could well be the next STAR performer in the ELSS Category.
Best of luck.

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