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Best Tax Saving Investments For 2019

Updated on July 14, 2019 , 773 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 2019

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2018 (%)
Mirae Asset Tax Saver Fund Growth ₹17.906
↑ 0.16
₹1,9490.37.611.617.2 -2.3
Tata India Tax Savings Fund Growth ₹18.4213
↑ 0.14
₹1,7901.38.59.811.8 -8.4
Kotak Tax Saver Scheme Growth ₹44.641
↑ 0.21
₹8980.47.59.611.413.4-3.8
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 Jul 19
*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. Mirae Asset Tax Saver 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. The Scheme does not guarantee or assure any returns.

Mirae Asset Tax Saver Fund is a Equity - ELSS fund was launched on 28 Dec 15. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 17.8% since its launch.  Return for 2018 was -2.3% , 2017 was 47.9% and 2016 was 14.8% .

Below is the key information for Mirae Asset Tax Saver Fund

Mirae Asset Tax Saver Fund
Growth
Launch Date 28 Dec 15
NAV (16 Jul 19) ₹17.906 ↑ 0.16   (0.90 %)
Net Assets (Cr) ₹1,949 on 30 Apr 19
Category Equity - ELSS
AMC Mirae Asset Global Inv (India) Pvt. Ltd
Rating Not Rated
Risk Moderately High
Expense Ratio 2.45
Sharpe Ratio 0.26
Information Ratio 1.54
Alpha Ratio 1.16
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
30 Jun 16₹10,738
30 Jun 17₹14,490
30 Jun 18₹15,973
30 Jun 19₹17,924

Mirae Asset Tax Saver Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹470,047.
Net Profit of ₹170,047
Invest Now

Returns for Mirae Asset Tax Saver Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Jul 19

DurationReturns
1 Month 0.1%
3 Month 0.3%
6 Month 7.6%
1 Year 11.6%
3 Year 17.2%
5 Year
10 Year
15 Year
Since launch 17.8%
Historical performance (Yearly) on absolute basis
YearReturns
2018 -2.3%
2017 47.9%
2016 14.8%
2015
2014
2013
2012
2011
2010
2009
Fund Manager information for Mirae Asset Tax Saver Fund
NameSinceTenure
Neelesh Surana28 Dec 153.26 Yr.

Data below for Mirae Asset Tax Saver Fund as on 30 Apr 19

Equity Sector Allocation
SectorValue
Financial Services35.13%
Consumer Cyclical14.49%
Technology9.79%
Basic Materials8.87%
Consumer Defensive8.39%
Industrials8.18%
Energy6%
Health Care5.79%
Utility3.27%
Asset Allocation
Asset ClassValue
Cash0.1%
Equity99.9%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 15 | HDFCBANK
9%₹186 Cr766,938
↑ 26,500
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 15 | ICICIBANK
6%₹132 Cr3,125,209
↑ 293,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Dec 15 | TCS
4%₹91 Cr413,975
↑ 97,000
Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 15 | RELIANCE
4%₹86 Cr647,376
Axis Bank Ltd (Financial Services)
Equity, Since 31 Jan 18 | 532215
4%₹81 Cr1,001,193
Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Aug 16 | LT
4%₹80 Cr515,581
Infosys Ltd (Technology)
Equity, Since 31 Dec 15 | INFY
4%₹76 Cr1,030,437
↑ 58,000
State Bank of India (Financial Services)
Equity, Since 31 Dec 15 | SBIN
3%₹69 Cr1,946,527
Tata Steel Ltd (Basic Materials)
Equity, Since 31 Dec 15 | TATASTEEL
3%₹63 Cr1,298,478
↑ 510,000
HDFC Life Insurance Co Ltd (Financial Services)
Equity, Since 31 Jan 19 | 540777
3%₹61 Cr1,379,559
↑ 158,574

2. Tata India Tax Savings Fund

To provide medium to long term capital gains along with income tax relief to its Unitholders, while at all times emphasising the importance of capital appreciation..

Tata India Tax Savings Fund is a Equity - ELSS fund was launched on 13 Oct 14. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 13.7% since its launch.  Ranked 1 in ELSS category.  Return for 2018 was -8.4% , 2017 was 46% and 2016 was 2.1% .

Below is the key information for Tata India Tax Savings Fund

Tata India Tax Savings Fund
Growth
Launch Date 13 Oct 14
NAV (16 Jul 19) ₹18.4213 ↑ 0.14   (0.76 %)
Net Assets (Cr) ₹1,790 on 30 Apr 19
Category Equity - ELSS
AMC Tata Asset Management Limited
Rating
Risk Moderately High
Expense Ratio 2.61
Sharpe Ratio -0.05
Information Ratio -0.22
Alpha Ratio -11.12
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
30 Jun 15₹11,139
30 Jun 16₹12,422
30 Jun 17₹15,082
30 Jun 18₹16,166
30 Jun 19₹18,096

Tata India Tax Savings Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹405,518.
Net Profit of ₹105,518
Invest Now

Returns for Tata India Tax Savings Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Jul 19

DurationReturns
1 Month -1.1%
3 Month 1.3%
6 Month 8.5%
1 Year 9.8%
3 Year 11.8%
5 Year
10 Year
15 Year
Since launch 13.7%
Historical performance (Yearly) on absolute basis
YearReturns
2018 -8.4%
2017 46%
2016 2.1%
2015 13.3%
2014
2013
2012
2011
2010
2009
Fund Manager information for Tata India Tax Savings Fund
NameSinceTenure
Rupesh Patel1 Apr 153.84 Yr.
Ennette Fernandes18 Jun 180.62 Yr.

Data below for Tata India Tax Savings Fund as on 30 Apr 19

Equity Sector Allocation
SectorValue
Financial Services41.5%
Industrials11.2%
Technology9.55%
Consumer Cyclical9.38%
Consumer Defensive7.25%
Health Care6.3%
Energy5.63%
Basic Materials2.79%
Real Estate0.67%
Asset Allocation
Asset ClassValue
Cash5.73%
Equity94.27%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Nov 16 | ICICIBANK
9%₹170 Cr4,015,000
HDFC Bank Ltd (Financial Services)
Equity, Since 28 Feb 10 | HDFCBANK
7%₹136 Cr560,000
Infosys Ltd (Technology)
Equity, Since 30 Sep 18 | INFY
7%₹124 Cr1,680,000
Axis Bank Ltd (Financial Services)
Equity, Since 31 Aug 18 | 532215
6%₹121 Cr1,500,000
State Bank of India (Financial Services)
Equity, Since 30 Nov 18 | SBIN
6%₹109 Cr3,100,000
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 May 15 | KOTAKBANK
4%₹75 Cr495,000
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Jun 17 | HDFC
4%₹74 Cr340,000
↑ 30,000
Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 18 | RELIANCE
4%₹67 Cr500,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Jul 18 | TCS
3%₹55 Cr250,000
ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 16 | ITC
3%₹53 Cr1,900,000

3. Kotak Tax Saver Scheme

The investment objective of the scheme is to generate longterm capital appreciation from a diversified portfolio of equity and equity related securities and enable investors to avail the income tax rebate, as permitted from time to time.

Kotak Tax Saver Scheme is a Equity - ELSS fund was launched on 23 Nov 05. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 11.6% since its launch.  Ranked 19 in ELSS category.  Return for 2018 was -3.8% , 2017 was 33.8% and 2016 was 7.5% .

Below is the key information for Kotak Tax Saver Scheme

Kotak Tax Saver Scheme
Growth
Launch Date 23 Nov 05
NAV (16 Jul 19) ₹44.641 ↑ 0.21   (0.48 %)
Net Assets (Cr) ₹898 on 30 Apr 19
Category Equity - ELSS
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 2.73
Sharpe Ratio 0.27
Information Ratio -0.05
Alpha Ratio 3.33
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
30 Jun 14₹10,000
30 Jun 15₹13,025
30 Jun 16₹13,071
30 Jun 17₹16,197
30 Jun 18₹16,859
30 Jun 19₹19,106

Kotak Tax Saver Scheme 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 Kotak Tax Saver Scheme

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Jul 19

DurationReturns
1 Month -1.5%
3 Month 0.4%
6 Month 7.5%
1 Year 9.6%
3 Year 11.4%
5 Year 13.4%
10 Year
15 Year
Since launch 11.6%
Historical performance (Yearly) on absolute basis
YearReturns
2018 -3.8%
2017 33.8%
2016 7.5%
2015 1.5%
2014 56.6%
2013 -6.3%
2012 36.2%
2011 -26%
2010 19.9%
2009 75%
Fund Manager information for Kotak Tax Saver Scheme
NameSinceTenure
Harsha Upadhyaya25 Aug 153.44 Yr.

Data below for Kotak Tax Saver Scheme as on 30 Apr 19

Equity Sector Allocation
SectorValue
Financial Services28.19%
Industrials18.82%
Basic Materials17.71%
Technology8.74%
Energy8.35%
Consumer Defensive5.94%
Consumer Cyclical5.48%
Utility3.32%
Health Care2.24%
Asset Allocation
Asset ClassValue
Cash1.17%
Equity98.79%
Debt0%
Other0.04%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reliance Industries Ltd (Energy)
Equity, Since 30 Jun 06 | RELIANCE
7%₹62 Cr464,000
Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 13 | 532215
6%₹59 Cr730,000
↑ 30,000
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK
6%₹58 Cr1,375,000
↑ 50,000
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | HDFCBANK
6%₹58 Cr240,000
Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 14 | LT
4%₹38 Cr245,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 18 | TCS
4%₹37 Cr170,000
GlaxoSmithKline Consumer Healthcare Ltd (Consumer Defensive)
Equity, Since 30 Nov 17 | 500676
4%₹33 Cr45,000
Infosys Ltd (Technology)
Equity, Since 31 Dec 05 | INFY
4%₹33 Cr450,000
SRF Ltd (Basic Materials)
Equity, Since 30 Apr 16 | SRF
3%₹30 Cr105,000
AU Small Finance Bank Ltd (Financial Services)
Equity, Since 30 Jun 17 | 540611
3%₹27 Cr395,000

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.

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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.
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