Ask ET Mutual Funds: Should I redeem my investments in HDFC Taxsaver Fund?

I have investments (1,000 units) in HDFC Taxsaver Fund (Dividend), invested between 2013-2016. Is it the right time to withdraw money from this scheme? Its overall rating is going downwards.
-- Chirag Patel

Shilpa Wagh, Chief Financial Coach, Wagh Financials, responds:

HDFC Taxsaver has been under watch because its performance in the last three and five years was not up to the mark. However, last one year has been decent for it. Since the fund has already crossed the lock-in period, and most importantly if it has offered acceptable returns from the date if investment, you can think of redeeming it as the market valuations are good. Finally, one must accept that ELSS is also an equity mutual fund. So, the returns improve by holding the fund for a longer period as it lowers the volatility.


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