Ask ET Mutual Funds: Can I invest in Franklin Tax Shield Fund?

I am 26 years old. I work in an IT firm. I have been investing Rs 2000 through monthly SIP in Franklin Tax Shield Fund (Regular, Growth) since last six months. I am planning to increase it by another Rs 2,000 to Rs 4,000 per month. My investment horizon is five years. But Franklin Tax Shield Fund’s performance is not up to the mark. Is it better to go with another tax saving fund like Axis Long Term Equity Fund or DSPBR Tax Saver Fund? Please advise.
-- Bharath Kumar B

Jayant Vidwans, SEBI Registered Investment Advisor, responds:

You have opted for an SIP for five years. It doesn’t make sense to quit the fund because it is not a five star fund. If you want to pick another tax saving fund, you can select Axis Long Term Fund or DSP BlackRock Tax Saver Fund. Both are five star funds. Consider these SIPs for your retirement corpus (for longer term). SIPs may give you handsome returns in a long period.


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