SIP and corresponding tax benefits

POSTED BY Don Cheriyan ON June 25, 2013 4:06 am COMMENTS (5)

Hello All,

I wanted some clarification on the following:

I am planning to take up a SIP of 10k for HDFC top 200 and 5k for SBI EMERGING FUNDS. The rationale behind this is for retirement/child planning for the former and wealth creation for the latter. The period of investment, I am looking for is around 15 years.

1. Do SIPs attract tax exemption on completion of this period? I understand that since these arent ELSS I do not get any benefit under 80C.

2. Considering tax (if yes to above question) and inflation, are there any other options that would prove beneficial?

Any guidance on this would be appreciated.Thanks for the time.




5 replies on this article “SIP and corresponding tax benefits”

  1. Dear Don, yes, they were making you fool in simple words. 🙂

    Interestingly as you did not say yes to that crap plan, now they are fool. 🙂



  2. Don Cheriyan says:

    The reason I had this confusion was, one of the staff members from hdfc mentioned tht it would be taxed and rather asked me to opt for their CREST fund.
    I’m guessing they were trying to sell it to me. :p

  3. Dear Don, OK ‘ll be my words.



  4. Don Cheriyan says:

    Thanks Ashal fot your feedback!
    Just to add onto my query, do you have any opinions on the SIPs I’m planning to add to my portfolio?

  5. Dear Don cheriyan, as per current Tax laws, any Eq. fund if hold more than 1Y, the gains are tax free. What ‘ll be the situation after 15Y with respect to Tax laws, I can not comment.



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