InvestorQ : Why is Tata tax saver fund not advised by many investors and digital channels?
divya Sing made post

Why is Tata tax saver fund not advised by many investors and digital channels?

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Ask IIFL answered.
1 year ago
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Mutual fund schemes or any other investment instruments are advised on the basis of an investor’s risk appetite, investment horizon, and long-term financial goals of life. In the case of mutual fund investing, it is recommended to invest in one scheme from the category relevant for the investor. This is done in order to induce adequate diversification in a client’s mutual fund portfolio. Multiple schemes from the same category lead to over-diversification and underperformance in the long run.

Thus the financial advisors by practice recommend the best fund from the required category and therefore Tata India Tax Savings Fund does not top the list of ELSS category. However, it is among the top-performing tax saving funds and can be held or be invested with a long-term investment horizon.

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