I wish to invest in three different ELSSs in at least three funds for Rs 5,000 per month. Can you please suggest funds for three to five years?
Nitin Parekh, Mumbai
ELSS funds are diversified equity funds which have a three-year lock-in period on the investment. For the sum that you wish to invest, it is not necessary to invest in three funds and just one would do the job. You could select from DSP BlackRock Tax Saver or Franklin India Taxshield, both have a long performance history and proven track record. One suggestion – instead of investing through SIPs in these funds, you could instead invest in lump sum a couple of times during the year. This way, you will not face the difficulty of each SIP to stay invested for the three years before it can be redeemed.
