Best Tax Saving & Debt Funds India

Best Tax Saving & Debt Funds of India

“Hi asav,perfect reply man.I have decide to invest one equity-diversified fund and one tax saving fund and one debt fund.I have finalized the SBI magnum contra growth for equity-diversified,I have confused for choosing the best tax saving Mf and debt fund.

Valueresearch online showing so many types debt funds?.Can you suggest me one good debt and equity tax saving mf for the periods of 13 - 20 years..
Thanks”

Well there are many 4 star and 5 star rated Tax Saving & Debt funds on Valueresearchonline.com

SBI Magnum Contra is my all time favourite fund. Go for it. This fund is also the core fund of my portfolio also. But I suggest you to go for 2 or MAXIMUM 3 Equity diversified mutual funds. Because you can’t give the hold of your future to just one fund manager. Here is the ideal number of mutual funds you should own.

- Equity Diversified Funds – 2 or MAXIMUM 3 (Not less than 2…Right?…!!! )

- Tax Saving Funds – MAXIMUM 1 (ONLY 1 Understand?…!!! )

- Debt Funds – 1 or MAXIMUM 2 (1 is good enough. 2 is alright )

So I think I should suggest you 1 more equity diversified mutual fund. I think you should go for either Reliance Growth Fund or HDFC Top 200 fund. All the 2 funds are my core funs + SBI Magnum Contra.

Now, if you ask me about the Tax Saving Funds than, in my own portfolio i prefer SBI Magnum Tax Gain fund because this fund is not only 5 star rated by valueresearchonline but it has won several awards in past 10 years. and yeah, it has one of the longest past record of proven performance of more than 10 years….. So I LOVE this fund.

Currently, I am only 26 years old and that’s why I have not yet started investing in debt funds. So i have not analyzed them in detail yet. But I advise you to go for GILT Funds. Gilt funds are the debt funds only but they predominantly invest in government securities and small portion in corporate debt papers. So Gilt funds are much more safer than other varieties of debt funds such as floating rate funds…etc…

2 Good Gilt funds are, ICICI Prudential Gilt Investment PF & DSPBR Government Securities fund. Both are good funds. However, any fund rated 4-star or 5-star by Valueresearchonline is a good fund to invest. So go for any of the above 2 funds.