Mirae Asset Tax Saver Fund: Rs 25,000
Franklin India Low Duration Fund: Rs 1 lakh
I have a Max Life term plan of Rs 1.5 crore, LIC policies of Rs 10 lakh and Rs 1.5 lakh in PPF.
I also have a housing loan of Rs 15 lakh. I want to invest around Rs 5,000 per month in tax saving mutual funds for the education of my children.
Which mutual funds should I choose?
Vishal Dhawan, Founder, Plan Ahead Wealth Advisors, responds:
Your PPF, EPF, LIC premiums and home loan principal repayment are likely to exceed the maximum tax deduction of Rs 1.5 lakh available under Section 80C. If there is still a shortfall, you may consider investing in Mirae Asset Tax Saver Fund.
However, I would ask you to invest in open-ended schemes like multi cap or index funds for your children’s education. Open-ended funds provide more flexibility than ELSS or tax saving mutual funds.