Should I stop my SIP in DSPBR Tax Saver Fund?

I have invested in DSPBR Tax Saver Fund (Direct-G) via monthly SIP of Rs 1,000 since the last one year (February, 2017). After one year the XIRR return is 1 per cent. Should I continue the same fund or stop the SIP and invest in another ELSS scheme?
-- Jagabandhu Prusty

DSPBR Tax Saver Fund is good scheme in the ELSS category. The scheme follows a conservative investment strategy. The equity market is going through a bad phase, and your scheme is just reflecting the trend.

You need not be worried about the underperformance of DSPBR Tax Saver Fund in the last one year. You must understand that schemes you have invested in may go through ups and downs. It is not advisable to jump in and out schemes based on short-term performance. At the end of the exercise, most probably you would end up with average returns.


So, if you are a conservative investor looking to save taxes under Seciton 80C, you may continue your SIP in DSPBR Tax Saver Fund.

Here are our recommended tax saving mutual fund schemes: Best tax saving mutual funds or ELSS to invest in 2018