Should I invest in ELSS or diversified equity mutual fund schemes

I want to invest upto 10,000 PM. I have been investing in 3 fund: 1. SBI Blue Chip - 3000, 2. Franklin High Growth Company Fund - 2000, 3. Axis Long Term Equity Plan - 2000. So, respected sir/madam please guide me, which type of fund I should buy now for better diversification and tax savings Confusion in these two types funds: 1) Should I add one more ELSS Fund like DSP BlackRock etc., 2) Should I choose one small Cap Fund, 3) Please suggest me some name My name is Sachin Negi, Age-30 and Salary: 40,000. PPF investment - 1 Lakh in month of june 2017. I come under new pension scheme monthly contribution is 9500?

Jul 14, 2017 by Sachin Negi, Pauri | Mutual Fund

You are already investing in 3 good schemes, one each from large cap, diversified and ELSS fund categories.

For better diversification, you can go with ELSS funds for two reasons - 1) You need to saves taxes under Section 80C of The Income Tax Act 1961 and that there is no better option than ELSS funds 2) ELSS funds are diversified equity funds, therefore, you need not invest in diversified equity funds separately in order to diversify your investments.

Yes, DSP BlackRock Tax Saver Fund is a top performing fund in the ELSS category. Investing in other category of funds may be suggested only when you have exhausted the full limit of investment for saving taxes, i.e. Rs 150,000 in a year.

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