fincash logo SOLUTIONS
EXPLORE FUNDS
CALCULATORS
LOG IN
SIGN UP

Fincash » Mutual Funds » Tax Investments

Best Tax Saving Investments For 2020

Updated on January 22, 2020 , 1141 views

Looking for best tax saving investments? Don’t know how to save Income Tax? Tax saving can be easy if done in a correct manner. There are various smart ways to stay away from paying taxes and save as much as possible. Generally, people indulge into Tax Planning when the financial year is about to end. But, does this ensure prudent investment planning? No! Investing in the early quarters of the financial year is a smarter approach instead. This ensures that you get time to plan your investment and avail the most out of it. Some of the tax saving investments include tax saving Mutual Funds ELSS, PPF, tax saving FD, NPS etc. a detailed list of tax saving investment options is mentioned below.

Some of the Best Investment Plan in India that are beneficial for tax saving include-

Tax-saving

Tax Saving ELSS Funds Or Equity Linked Savings Schemes

Tax saving is an ideal way of financial planning. ELSS Funds are tax saving schemes that are equity diversified and invest the major part of the fund corpus either in equities or equity-related instruments. Being market-linked, equity-linked savings scheme or ELSS funds offer good returns. ELSS funds are tax saving Mutual Funds that offers tax deductions upto INR 1,50,000 under Section 80C of Income Tax Act.

As per the Budget 2018, ELSS would attract Long Term Capital Gains (LTCG). Investors would be taxed at 10% (with no indexation) under long term Capital Gain tax. Gains up to INR 1 lakh are free of tax. Tax at 10% applies to gains above INR 1 lakh.

Top 3 Tax Saving ELSS Funds 2020

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2019 (%)
BOI AXA Tax Advantage Fund Growth ₹57.28
↑ 0.49
₹2667.219.32213.68.214.6
Motilal Oswal Long Term Equity Fund Growth ₹19.3615
↑ 0.22
₹1,648619.120.213.113.813.2
BNP Paribas Long Term Equity Fund (ELSS) Growth ₹42.871
↑ 0.43
₹4748.113.620.213.17.714.3
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Jan 20
*Above is the list of Top 3 Tax Saving ELSS Mutual Funds sorted on last 1 year performance and have Net Assets between 100 - 5000 Crore.

1. BOI AXA Tax Advantage Fund

The Scheme seeks to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities across all market capitalisations. The Scheme is in the nature of diversified multi-cap fund. The Scheme is not providing any assured or guaranteed returns.(There can be no assurance that the investment objectives of the Scheme will be realized.)

BOI AXA Tax Advantage Fund is a Equity - ELSS fund was launched on 25 Feb 09. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 17.3% since its launch.  Ranked 13 in ELSS category.  Return for 2019 was 14.6% , 2018 was -16.3% and 2017 was 57.7% .

Below is the key information for BOI AXA Tax Advantage Fund

BOI AXA Tax Advantage Fund
Growth
Launch Date 25 Feb 09
NAV (24 Jan 20) ₹57.28 ↑ 0.49   (0.86 %)
Net Assets (Cr) ₹266 on 31 Dec 19
Category Equity - ELSS
AMC BOI AXA Investment Mngrs Private Ltd
Rating
Risk Moderately High
Expense Ratio 3.02
Sharpe Ratio 0.78
Information Ratio 0.14
Alpha Ratio 4.65
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,206
31 Dec 16₹10,080
31 Dec 17₹15,891
31 Dec 18₹13,294
31 Dec 19₹15,236

BOI AXA Tax Advantage Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹376,357.
Net Profit of ₹76,357
Invest Now

Returns for BOI AXA Tax Advantage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

DurationReturns
1 Month 3.7%
3 Month 7.2%
6 Month 19.3%
1 Year 22%
3 Year 13.6%
5 Year 8.2%
10 Year
15 Year
Since launch 17.3%
Historical performance (Yearly) on absolute basis
YearReturns
2019 14.6%
2018 -16.3%
2017 57.7%
2016 -1.2%
2015 2.1%
2014 44%
2013 9.1%
2012 24.8%
2011 -24.1%
2010 5.9%
Fund Manager information for BOI AXA Tax Advantage Fund
NameSinceTenure
Aakash Manghani15 Jul 190 Yr.

Data below for BOI AXA Tax Advantage Fund as on 31 Dec 19

Equity Sector Allocation
SectorValue
Financial Services43.25%
Basic Materials11.97%
Industrials10.83%
Consumer Cyclical7.41%
Health Care5.64%
Technology5.63%
Consumer Defensive5.26%
Energy4.83%
Utility1.17%
Real Estate0.98%
Communication Services0.98%
Asset Allocation
Asset ClassValue
Cash2.05%
Equity97.94%
Debt0.01%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Bajaj Finance Ltd (Financial Services)
Equity, Since 31 May 18 | 500034
7%₹18 Cr43,814
↑ 615
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 18 | ICICIBANK
7%₹17 Cr337,241
↑ 10,926
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 10 | HDFCBANK
6%₹17 Cr131,179
Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 18 | RELIANCE
5%₹12 Cr80,135
↑ 12,523
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Sep 18 | KOTAKBANK
5%₹12 Cr71,724
↑ 4,015
PI Industries Ltd (Basic Materials)
Equity, Since 30 Nov 18 | PIIND
3%₹8 Cr54,155
↑ 1,828
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 May 19 | HDFC
3%₹8 Cr33,400
↑ 2,400
Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 18 | 532215
3%₹7 Cr97,680
Abbott India Ltd (Healthcare)
Equity, Since 31 Aug 18 | 500488
3%₹7 Cr5,731
↑ 304
Divi's Laboratories Ltd (Healthcare)
Equity, Since 30 Sep 18 | DIVISLAB
3%₹7 Cr39,000

2. Motilal Oswal Long Term Equity Fund

(Erstwhile Motilal Oswal MOSt Focused Long Term Fund)

The investment objective of the Scheme is to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related instruments. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.

Motilal Oswal Long Term Equity Fund is a Equity - ELSS fund was launched on 21 Jan 15. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 14.1% since its launch.  Return for 2019 was 13.2% , 2018 was -8.7% and 2017 was 44% .

Below is the key information for Motilal Oswal Long Term Equity Fund

Motilal Oswal Long Term Equity Fund
Growth
Launch Date 21 Jan 15
NAV (24 Jan 20) ₹19.3615 ↑ 0.22   (1.17 %)
Net Assets (Cr) ₹1,648 on 31 Dec 19
Category Equity - ELSS
AMC Motilal Oswal Asset Management Co. Ltd
Rating Not Rated
Risk Moderately High
Expense Ratio 2.2
Sharpe Ratio 0.72
Information Ratio 0.08
Alpha Ratio 3.74
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 Dec 15₹10,804
31 Dec 16₹12,151
31 Dec 17₹17,493
31 Dec 18₹15,966
31 Dec 19₹18,073

Motilal Oswal Long Term Equity Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹426,080.
Net Profit of ₹126,080
Invest Now

Returns for Motilal Oswal Long Term Equity Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

DurationReturns
1 Month 3.5%
3 Month 6%
6 Month 19.1%
1 Year 20.2%
3 Year 13.1%
5 Year 13.8%
10 Year
15 Year
Since launch 14.1%
Historical performance (Yearly) on absolute basis
YearReturns
2019 13.2%
2018 -8.7%
2017 44%
2016 12.5%
2015
2014
2013
2012
2011
2010
Fund Manager information for Motilal Oswal Long Term Equity Fund
NameSinceTenure
Aditya Khemani6 Sep 190 Yr.
Abhiroop Mukherjee21 Jan 154.61 Yr.

Data below for Motilal Oswal Long Term Equity Fund as on 31 Dec 19

Equity Sector Allocation
SectorValue
Financial Services47.59%
Consumer Cyclical17.34%
Industrials9.76%
Consumer Defensive6.91%
Basic Materials6.47%
Health Care6.34%
Technology2.94%
Asset Allocation
Asset ClassValue
Cash2.65%
Equity97.35%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Nov 18 | ICICIBANK
10%₹164 Cr3,195,000
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 15 | HDFCBANK
9%₹150 Cr1,180,000
Axis Bank Ltd (Financial Services)
Equity, Since 28 Feb 19 | 532215
8%₹126 Cr1,707,653
Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 30 Apr 15 | MARUTI
5%₹80 Cr110,000
HDFC Life Insurance Co Ltd (Financial Services)
Equity, Since 30 Nov 17 | 540777
5%₹74 Cr1,300,000
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 May 19 | KOTAKBANK
5%₹73 Cr450,000
Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 18 | LT
4%₹68 Cr509,225
United Breweries Ltd (Consumer Defensive)
Equity, Since 30 Sep 19 | 532478
4%₹65 Cr517,725
↑ 45,000
Shree Cement Ltd (Basic Materials)
Equity, Since 30 Sep 19 | 500387
4%₹59 Cr27,945
AU Small Finance Bank Ltd (Financial Services)
Equity, Since 30 Apr 19 | 540611
4%₹58 Cr700,000

3. BNP Paribas Long Term Equity Fund (ELSS)

The investment objective of the Scheme is to generate long-term capital growth from a diversified and actively managed portfolio of equity and equity related securities along with income tax rebate, as may be prevalent fromtime to time. However, there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee / indicate any returns.

BNP Paribas Long Term Equity Fund (ELSS) is a Equity - ELSS fund was launched on 5 Jan 06. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 10.9% since its launch.  Ranked 22 in ELSS category.  Return for 2019 was 14.3% , 2018 was -9.3% and 2017 was 42.3% .

Below is the key information for BNP Paribas Long Term Equity Fund (ELSS)

BNP Paribas Long Term Equity Fund (ELSS)
Growth
Launch Date 5 Jan 06
NAV (24 Jan 20) ₹42.871 ↑ 0.43   (1.00 %)
Net Assets (Cr) ₹474 on 31 Dec 19
Category Equity - ELSS
AMC BNP Paribas Asset Mgmt India Pvt. Ltd
Rating
Risk Moderately High
Expense Ratio 2.56
Sharpe Ratio 1.01
Information Ratio -0.09
Alpha Ratio 4.87
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,772
31 Dec 16₹10,060
31 Dec 17₹14,319
31 Dec 18₹12,986
31 Dec 19₹14,836

BNP Paribas Long Term Equity Fund (ELSS) SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹367,070.
Net Profit of ₹67,070
Invest Now

Returns for BNP Paribas Long Term Equity Fund (ELSS)

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

DurationReturns
1 Month 4.1%
3 Month 8.1%
6 Month 13.6%
1 Year 20.2%
3 Year 13.1%
5 Year 7.7%
10 Year
15 Year
Since launch 10.9%
Historical performance (Yearly) on absolute basis
YearReturns
2019 14.3%
2018 -9.3%
2017 42.3%
2016 -6.6%
2015 7.7%
2014 53%
2013 7.7%
2012 34.3%
2011 -15%
2010 14.9%
Fund Manager information for BNP Paribas Long Term Equity Fund (ELSS)
NameSinceTenure
Abhijeet Dey16 Nov 163.04 Yr.
Karthikraj Lakshmanan7 Oct 163.15 Yr.

Data below for BNP Paribas Long Term Equity Fund (ELSS) as on 31 Dec 19

Equity Sector Allocation
SectorValue
Financial Services42.56%
Technology8.48%
Basic Materials8.42%
Industrials7.79%
Consumer Cyclical6.7%
Communication Services5.92%
Consumer Defensive5.19%
Utility4.59%
Energy4.15%
Health Care2.55%
Asset Allocation
Asset ClassValue
Cash3.65%
Equity96.35%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 08 | HDFCBANK
10%₹46 Cr360,000
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 12 | ICICIBANK
8%₹40 Cr788,000
Axis Bank Ltd (Financial Services)
Equity, Since 31 Aug 18 | 532215
5%₹22 Cr297,141
Infosys Ltd (Technology)
Equity, Since 31 Mar 09 | INFY
5%₹22 Cr315,000
↑ 65,000
Treps
CBLO/Reverse Repo | -
4%₹20 Cr
Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 18 | RELIANCE
4%₹20 Cr127,500
Sundaram Finance Ltd (Financial Services)
Equity, Since 31 Dec 18 | SUNDARMFIN
3%₹14 Cr85,000
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 19 | BHARTIARTL
3%₹13 Cr290,950
↑ 186,800
Alkem Laboratories Ltd (Healthcare)
Equity, Since 31 Dec 17 | ALKEM
3%₹12 Cr60,000
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 28 Feb 15 | KOTAKBANK
3%₹12 Cr75,000

PPF Or Public Provident Fund

PPF or Public Provident Fund is a tax-free investment option that is backed by the Central Government of India. PPF came into existence in 1968 by the Ministry of Finance. Public Provident Fund aims to provide financial security to people post-retirement. The government of India launched PPF in order to help people inculcate the habit of saving and also plan their retirement well in advance. PPF is one of the best tax saving investments as the interest earned on deposits are not taxable. Moreover, the investments are liable for tax deductions under section 80C of Income Tax Act.

Tax Saving FD Or Fixed Deposit

tax saving FD or Fixed Deposits are financial instruments that are provided by banks for a fixed period of time. The interest rate of FD varies from 4% to 8% (according to the investment tenure). Usually, it is seen that higher the period of investment higher is the rate of interest on FD and vice versa. Though FD is a tax saving and safe investment, the interest earned on them is fully taxable as per the Income Tax Act. Furthermore, if the rate of interest on FD is above INR 10,000, banks deduct a TDS @ 10% p.a.

Ready to Invest?
Talk to our investment specialist
Disclaimer:
By submitting this form I authorize Fincash.com to call/SMS/email me about its products and I accept the terms of Privacy Policy and Terms & Conditions.

NPS Or National Pension Scheme

NPS or National Pension Scheme is a tax saving investment option formulated by the Central Government of India to help people save tax while saving for retirement. As per the National Pension Scheme, one can open a personal retirement account where they can save a pension corpus during their working life. Apart from Retirement planning, investments upto 50,000 under NPS are liable for deductions under section 80 CCD (1B). Under section 80C of Income Tax Act, tax deductions upto 1,50,000 are liable on investments in a National Pension Scheme. This makes NPS one of the best tax saving investments in India.

National Saving Certificate (NSC)

National Saving Certificate (NSC) is a good Tax Saving Scheme to invest in. NSC interest rates are set in the month of April every year. The current interest rate of NSC is 7.9% p.a. Investments up to INR 1,00,000 per year are eligible for IT rebate under the Section 80C of the Income Tax Act. You can invest in NSC through your local post office as well.

Employee Provident Fund (EPF)

Employee Provident Fund or EPF is typically deducted from the salary of an individual which includes 12% of their basic salary. The employer also contributes the similar percentage of which 3.7% goes to the EPF and the remaining 8.3% goes towards the pension fund. It is a defined benefit scheme with interest rates being set every year. The interest rate was 8.8% p.a. for the year 2015-2016. There is no tax at the time of making the investment in EPF. Also, the interest earned is also tax-free. At the time of retirement, individuals can withdraw the entire amount in the account.

ULIP Or Unit Linked Insurance Policy

Unit-linked insurance Policy is an insurance policy that works an insurance cover along with offering market linked returns. Under a ULIP, some part of your investment is invested in Mutual Funds (Equity, Balanced or Debt fund) and the remaining is contributed towards your life cover. One can save tax by investing in ULIP under Sections 80C, 80CCC and 80D of the Income Tax Act. Moreover, the interests that are earned on your ULIP investment are tax-free. Also, under section 10 (10D), tax-free maturity benefits are available as well. When choosing an investment, people usually tend to choose it just to avail tax benefits. Ideally, the investors should look for certain factors before investing. Some of those include maximum tax saving, low-cost investment, substantial returns etc. So, understand the tax saving investments well and then invest.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
How helpful was this page ?
Rated 5, based on 1 reviews.
POST A COMMENT