Investing only to save tax might not be a good idea. The top five tax plans have, on an average, given a return of 45% in the past six months. This is much lower than the 50% earned by the top five diversified funds. Even over three years, the diversified funds have generated higher returns, though there is not much difference in the category averages.
Easing liquidity conditions and relatively cheaper valuations have led to a rally in the midcap and infrastructure stocks. This has helped the funds based on these themes to generate even higher returns than diversified funds in the past six months. Reliance has bagged the top slot in both categories.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today