Do you want to invest in tax saving equity oriented Mutual Fund?

Many of us are not interested to invest hard earned money in share market because the market does not guarantee any return on investors' money. But there is an opportunity to earn a decent return if you have good knowledge and financial strength to take such market risk.

So many people want to invest in share market through mutual fund instead of investing their money directly in share market.

Now, what is mutual fund?

It's an investment fund that pools investors money. A mutual fund is managed by professionals. Fund managers invest the fund in share market (different sectors), debt, corporate bonds, government bonds etc based on the type of fund.

History of mutual fund in India

In 1963 Government of India launched Unit Trust of India (UTI) which is India's first mutual fund management company

After 1987 many other mutual fund management companies came in India

State Bank of India, Canara Bank, and Punjab National Bank were on that list who started offering mutual fund after UTI

Mutual funds in India are regulated under guidelines of SEBI (Securities and Exchange Board of India). In 1996 SEBI formulated mutual fund regulatory framework

How does it work?

Mutual fund pools investors money. A fund manager will invest that money in various financial products. Investors will get some units against his invested money. There are some costs associated with a mutual fund. These are fund management fee, distribution charge, service tax etc

There are many mutual funds offered by various mutual fund companies, some of those funds are eligible for Tax benefit u/s 80C as per the prevailing IT laws. Such mutual fund management companies are

Mutual Fund Managment Companies:

• AXIS Asset Management Company Limited
• BIRLA SUN LIFE Asset Management Company Limited
• BNP PARIBAS Asset Management Company (INDIA) Private Limited
• BOI AXA Investment Managers Pvt Ltd
• CANARA ROBECO Asset Management Company Limited
• DEUTSCHE Mutual Fund
• DHFL PRAMERICA Asset Management Pvt Limited
• DSP BLACKROCK Mutual FundEdelweiss Asset Management Limited
• FRANKLIN TEMPLETON Mutual Fund
• HDFC Asset Management Company Limited
• IDBI Mutual Fund
• ICICI PRUDENTIAL Mutual Fund
• JM Financial Asset Management Limited
• KOTAK MAHINDRA Mutual Fund
• LIC NOMURA Mutual Fund
• L&T Asset Management Limited
• MOTILAL OSWAL Asset Management Limited
• PRINCIPAL Mutual Fund
• RELIANCE Mutual Fund
• RELIGARE INVESCO Mutual Fund
• SBI Fund Management Pvt Ltd
• SUNDARAM Mutual Fund
• TATA Mutual Fund
• TAURUS Asset Management Limited
• UTI Mutual Fund UTI 

These are the few equity oriented mutual funds managed by those fund management companies. Two types of equity oriented mutual funds are available in the market. One gives dividend against your invested money (dividend plan) and another one does not give such dividend (growth plan).

Tax saving equity oriented such funds are generally called as Equity Linked Savings Scheme (ELSS)

Key features of ELSS:

• A lock in period of 3 years 
• Your investment upto 1 lac is deductible from your taxable income 

Mutual Fund- Growth:

• AXIS Long Term Equity Fund- Growth Plan
• BIRLA SUN LIFE Tax Relief 96 Fund- Growth- LSP 
• BIRLA SUN LIFE Tax Relief 96 Fund- Growth
• BIRLA Equity Plan- Tax Plan Growth
• BNP PARIBAS Long Term Equity Fund- Growth
• Canara Robeco Equity Tax Saver Regular Growth 
• EDELWEISS ELSS Fund - Growth Plan 
• Franklin India TAXSHIELD Growth
• ICICI PRUDENTIAL Long Term Equity Fund-Tax 
• ICICI PRUDENTIAL Long Term Equity Fund-Tax Saving Regular Plan- Growth
• KOTAK Tax Saver- Growth
• L and T Tax Advantage Fund- Growth
• Principal Personal Tax Saver Fund - Regular Plan Growth 
• RELIANCE Equity Linked Savings Fund Series- I Growth 
• RELIGARE Invesco Agile Tax Fund- Growth 
• SUNDARAM Tax Saver- Growth 
• TAURUS TAXSHIELD - Growth Plan 
• UTI Long Term Advantage Fund- Series II- Growth 
• UTI Long Term Advantage Fund- Series I- Growth
• BOI AXA Term Advantage Fund - Regular Plan- Growth
• BOI AXA Term Advantage Fund - Eco Plan0 Growth
• DWS Tax Saving Fund- Growth 
• DHFL PRAMERICA Tax Saving Fund- Growth Option
• DSP BLACKROCK Tax Saving Fund- Growth
• Franklin India INDEX Tax Fund- Growth
• HDFC Long Term Advantage Fund - Growth
• HDFC Tax Saver - Growth
• HSBC Tax Saver Equity Fund- Growth 
• ICICI PRUDENTIAL R.I.G.H.T Fund Growth
• IDBI Equity Advantage Fund - Growth 
• IDFC Tax Saver Growth
• IDFC Tax Advantage ELSS Fund- Regular Plan- Growth 
• JM Tax Gain Fund- Growth Option
• JM Equity Tax Saver Fund Series-I-Growth 
• JP Morgan India Tax Advantage Fund- Regular Plan Growth 
• L and T Tax Saver Fund - Growth 
• L and T Long Term Advantage Fund - I - Growth 
• LIC Nomura MF Tax Plan- Growth Plan
• MOTILAL OSWAL Most Focused Long Term Fund- Growth E
• Principal Tax Savings Fund - Regular Plan Growth 
• Reliance Tax Saver ELSS Fund- Growth Plan 
• Religare Invesco Tax Plan- Growth 
• SBI Tax Advantage Fund Series- II- Growth 
• SBI Tax Advantage Fund- Series I- Growth 
• SBI Magnum Tax Gain Scheme- Regular Plan- Growth 
• SUNDARAM Long Term Tax Advantage Fund SR 2-10 Yrs- Regular Plan
• TATA Tax Advantage Fund- I
• TATA Long Term Equity Fund- Regular Plan- Growth 
• TATA Infrastructure Tax Savings Fund- Growth 

Mutual Fund- Dividend:

• AXIS Long Term Equity Fund- Dividend Plan
• BIRLA SUN LIFE Tax Relief 96 Fund- Dividend
• BIRLA Equity Plan- Tax Plan DividendE
• BNP Paribas Long Term Equity Fund- Dividend
• Canara Robeco Equity Tax Saver Regular Dividend 
• Franklin India Taxshield Dividend 
• KOTAK Tax Saver Dividend 
• L AND T Tax Advantage Fund- Dividend Option
• TAURUS Taxshield Dividend Plan 
• UTI Long Term Advantage Fund- Series II- Dividend 
• UTI Long Term Advantage Fund- Series I- Dividend
• UTI- Equity Tax Savings Plan- Dividend Plan
• BOI AXA Tax Advantage Fund - Regular Plan - Dividend
• BOI AXA Tax Advantage Fund - Eco Plan - Dividend
• DWS Tax Saving Fund Dividend 
• DHFL PRAMERICA Tax Saving Fund- Dividend Payout
• DSP BLACKROCK Tax Saver Fund- Dividend
• Edelweiss ELSS Fund- Dividend Plan
• HDFC Long Term Advantage Fund - Dividend
• HDFC Tax Saver - Dividend Plan 
• HSBC Tax Saver Equity Fund - Dividend
• ICICI Prudential R.I.G.H.T Fund Dividend
• IDBI Equity Advantage Fund - Dividend
• IDFC Tax Saver Dividend 
• IDFC Tax Advantage ELSS Fund - Regular Plan- Dividend 
• L and T Tax Saver Fund - Dividend 
• L and T Long Term Advantage Fund - I - Dividend Payout 
• JM Equity Tax Saver Fund - Series I Dividend Plan
• JM Tax Gain Fund - Dividend Option 
• JP Morgan India Tax Advantage Fund - Regular Plan - Dividend Payout 
• RELIANCE Equity Linked Savings Fund Series - I Dividend 
• RELIANCE Tax Saver ELSS Fund - Dividend Plan
• RELIGARE Invesco Tax Fund - Dividend
• RELIGARE Invesco Agile Tax Fund - Dividend 
• SBI Tax Advantage Fund Series II Dividend 
• SBI Tax Advantage Fund - Series 1 Dividend
• SBI Magnum Tax Gain Scheme - Regular Plan - Dividend 
• SUNDARAM Tax Saver Dividend 
• SUNDARAM Long Term Tax Advantage Fund SR 2 - 10 Yrs - Regular Dividend 
• TATA Infrastructure Tax Saving Fund- Dividend
• TATA Long Term Equity Fund- Regular Plan- Dividend 

Advantage of mutual fund

• Professional persons are managing the fund 
• Funds are invested in multiple securities and financial products, so risk is less 
• SEBI regulates the mutual funds 

Disadvantage of mutual fund

• Additional fees charges by multiple agencies (fund management companies, distributors, government) 
• Less control over your invested money