fincash logo SOLUTIONS
EXPLORE FUNDS
CALCULATORS
LOG IN
SIGN UP

Fincash » Mutual Funds » Tax Investments

Best Tax Saving Investments For 2020

Updated on September 21, 2020 , 1860 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 ₹58.01
↓ -1.36
₹29912.538.810.74.79.114.6
Canara Robeco Equity Tax Saver Growth ₹69.1
↓ -2.06
₹1,12210.237.85.57.39.110.7
Mirae Asset Tax Saver Fund Growth ₹18.125
↓ -0.49
₹4,1818.946.30.55.6 14.1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Sep 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 16.4% 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 Sep 20) ₹58.01 ↓ -1.36   (-2.29 %)
Net Assets (Cr) ₹299 on 31 Aug 20
Category Equity - ELSS
AMC BOI AXA Investment Mngrs Private Ltd
Rating
Risk Moderately High
Expense Ratio 2.67
Sharpe Ratio 0.61
Information Ratio 0.22
Alpha Ratio 12.63
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 Aug 15₹10,000
31 Aug 16₹10,739
31 Aug 17₹13,013
31 Aug 18₹14,882
31 Aug 19₹12,815
31 Aug 20₹15,418

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 ₹385,859.
Net Profit of ₹85,859
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 Sep 20

DurationReturns
1 Month -3.9%
3 Month 12.5%
6 Month 38.8%
1 Year 10.7%
3 Year 4.7%
5 Year 9.1%
10 Year
15 Year
Since launch 16.4%
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 191.13 Yr.

Data below for BOI AXA Tax Advantage Fund as on 31 Aug 20

Equity Sector Allocation
SectorValue
Financial Services26.09%
Basic Materials17.4%
Health Care16.38%
Technology10.64%
Consumer Cyclical7.62%
Energy6.1%
Industrials4.26%
Consumer Defensive3.89%
Communication Services2.76%
Utility0.59%
Asset Allocation
Asset ClassValue
Cash2.62%
Equity97.38%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 10 | HDFCBANK
6%₹19 Cr166,793
↑ 8,072
Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 18 | RELIANCE
6%₹18 Cr87,510
PI Industries Ltd (Basic Materials)
Equity, Since 30 Nov 18 | PIIND
4%₹13 Cr71,295
↑ 1,444
Divi's Laboratories Ltd (Healthcare)
Equity, Since 30 Sep 18 | DIVISLAB
4%₹11 Cr35,265
↑ 1,459
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 18 | ICICIBANK
4%₹10 Cr265,948
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Sep 18 | KOTAKBANK
3%₹10 Cr72,782
↑ 2,097
Laurus Labs Ltd (Healthcare)
Equity, Since 30 Jun 20 | 540222
3%₹9 Cr82,537
↓ -1,316
Navin Fluorine International Ltd (Basic Materials)
Equity, Since 31 Jul 19 | 532504
3%₹8 Cr42,952
Bajaj Finance Ltd (Financial Services)
Equity, Since 31 May 18 | 500034
3%₹8 Cr21,656
↑ 3,817
Infosys Ltd (Technology)
Equity, Since 30 Jun 20 | INFY
3%₹8 Cr81,279
↑ 4,600

2. Canara Robeco Equity Tax Saver

(ELSS Scheme) Seeking to provide long term capital appreciation by predominantly investing in equities and to facilitate the subscribers to seek tax benefits as provided under Section 80 C of the Income Tax Act, 1961. However, there can be no assurance that the investment objective of the scheme will be realized.

Canara Robeco Equity Tax Saver is a Equity - ELSS fund was launched on 2 Feb 09. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 18.1% since its launch.  Ranked 36 in ELSS category.  Return for 2019 was 10.7% , 2018 was 2.7% and 2017 was 32% .

Below is the key information for Canara Robeco Equity Tax Saver

Canara Robeco Equity Tax Saver
Growth
Launch Date 2 Feb 09
NAV (24 Sep 20) ₹69.1 ↓ -2.06   (-2.89 %)
Net Assets (Cr) ₹1,122 on 31 Aug 20
Category Equity - ELSS
AMC Canara Robeco Asset Management Co. Ltd.
Rating
Risk Moderately High
Expense Ratio 2.32
Sharpe Ratio 0.38
Information Ratio 0.43
Alpha Ratio 7.12
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 Aug 15₹10,000
31 Aug 16₹10,917
31 Aug 17₹12,492
31 Aug 18₹14,910
31 Aug 19₹13,834
31 Aug 20₹15,532

Canara Robeco Equity Tax Saver SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹385,859.
Net Profit of ₹85,859
Invest Now

Returns for Canara Robeco Equity Tax Saver

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

DurationReturns
1 Month -3.4%
3 Month 10.2%
6 Month 37.8%
1 Year 5.5%
3 Year 7.3%
5 Year 9.1%
10 Year
15 Year
Since launch 18.1%
Historical performance (Yearly) on absolute basis
YearReturns
2019 10.7%
2018 2.7%
2017 32%
2016 0%
2015 0.6%
2014 45.2%
2013 5.3%
2012 30%
2011 -16.3%
2010 24.9%
Fund Manager information for Canara Robeco Equity Tax Saver
NameSinceTenure
Shridatta Bhandwaldar1 Oct 190.92 Yr.
Cheenu Gupta12 Mar 182.47 Yr.

Data below for Canara Robeco Equity Tax Saver as on 31 Aug 20

Equity Sector Allocation
SectorValue
Financial Services26.1%
Technology18.61%
Consumer Cyclical10.57%
Health Care9.73%
Energy8.77%
Basic Materials8.72%
Consumer Defensive7.19%
Industrials5.62%
Utility1.81%
Asset Allocation
Asset ClassValue
Cash2.89%
Equity97.11%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Infosys Ltd (Technology)
Equity, Since 31 Jul 18 | INFY
9%₹100 Cr1,074,500
Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 19 | RELIANCE
9%₹98 Cr473,000
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 08 | HDFCBANK
6%₹72 Cr648,184
↑ 15,000
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Aug 18 | ICICIBANK
6%₹64 Cr1,626,000
↑ 325,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Jun 20 | TCS
5%₹51 Cr228,000
Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Oct 16 | 500696
4%₹47 Cr222,330
↓ -13,000
Divi's Laboratories Ltd (Healthcare)
Equity, Since 31 Dec 18 | DIVISLAB
4%₹44 Cr142,500
↓ -17,000
Bajaj Finance Ltd (Financial Services)
Equity, Since 31 May 19 | 500034
4%₹42 Cr119,150
HDFC Life Insurance Co Ltd (Financial Services)
Equity, Since 30 Apr 20 | 540777
2%₹27 Cr473,000
PI Industries Ltd (Basic Materials)
Equity, Since 30 Apr 20 | PIIND
2%₹24 Cr128,000

3. 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 13.4% since its launch.  Return for 2019 was 14.1% , 2018 was -2.3% and 2017 was 47.9% .

Below is the key information for Mirae Asset Tax Saver Fund

Mirae Asset Tax Saver Fund
Growth
Launch Date 28 Dec 15
NAV (24 Sep 20) ₹18.125 ↓ -0.49   (-2.65 %)
Net Assets (Cr) ₹4,181 on 31 Aug 20
Category Equity - ELSS
AMC Mirae Asset Global Inv (India) Pvt. Ltd
Rating Not Rated
Risk Moderately High
Expense Ratio 2.11
Sharpe Ratio 0.32
Information Ratio 0.88
Alpha Ratio 5.76
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 Aug 16₹11,824
31 Aug 17₹15,140
31 Aug 18₹17,541
31 Aug 19₹17,023
31 Aug 20₹18,769

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 ₹349,120.
Net Profit of ₹49,120
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 24 Sep 20

DurationReturns
1 Month -4.7%
3 Month 8.9%
6 Month 46.3%
1 Year 0.5%
3 Year 5.6%
5 Year
10 Year
15 Year
Since launch 13.4%
Historical performance (Yearly) on absolute basis
YearReturns
2019 14.1%
2018 -2.3%
2017 47.9%
2016 14.8%
2015
2014
2013
2012
2011
2010
Fund Manager information for Mirae Asset Tax Saver Fund
NameSinceTenure
Neelesh Surana28 Dec 154.68 Yr.

Data below for Mirae Asset Tax Saver Fund as on 31 Aug 20

Equity Sector Allocation
SectorValue
Financial Services34.68%
Technology11.07%
Consumer Defensive10.67%
Industrials8.19%
Energy7.4%
Consumer Cyclical7.26%
Basic Materials6.29%
Health Care5.39%
Communication Services3.44%
Utility3.09%
Asset Allocation
Asset ClassValue
Cash0.44%
Equity99.56%
Other0%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 15 | HDFCBANK
10%₹401 Cr3,595,722
↑ 295,000
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 15 | ICICIBANK
6%₹261 Cr6,621,412
↑ 450,000
Infosys Ltd (Technology)
Equity, Since 31 Dec 15 | INFY
6%₹249 Cr2,678,557
Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 15 | RELIANCE
5%₹195 Cr938,876
↓ -160,000
Axis Bank Ltd (Financial Services)
Equity, Since 31 Jan 18 | 532215
4%₹170 Cr3,418,766
Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Dec 15 | TCS
4%₹164 Cr725,179
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 20 | BHARTIARTL
3%₹143 Cr2,785,000
↑ 1,375,000
ITC Ltd (Consumer Defensive)
Equity, Since 30 Apr 16 | ITC
3%₹110 Cr5,758,461
State Bank of India (Financial Services)
Equity, Since 31 Dec 15 | SBIN
3%₹107 Cr5,053,799
Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Aug 16 | LT
3%₹105 Cr1,113,630
↓ -65,000

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 2 reviews.
POST A COMMENT