If you don't rebalance your portfolio regularly, the option helps you book profits.
Advantages of triggers
Investors should ideally rebalance their portfolios every six months. They should sell assets that have risen sharply, like equities at present, and put the money in an asset that is underperforming, like gold. Doing so allows the investor to bring his asset allocation back to its original level and guard against a sharp erosion of gains in case of a downturn. However, many investors neglect to do so, either because of greed--they want higher gains from the asset that is outperforming--or due to lethargy. Then the market crashes and their gains evaporate. If the bear run persists for long, they get disheartened and exit. After such an experience, many of them turn away from equities forever.
By setting a trigger, you automate the process of booking gains in a rising market. As soon as your fund makes a pre-determined level of gain, the trigger gets activated. Trigger funds help investors have a positive experience from equities. It is not enough for investors to see gains on paper. Fund houses must put money in investors' hands, which is what a trigger fund does.
Triggers help you to take advantage of attractive valuations when the market is falling. In many cases, investors, who wished for lower valuations when the market was up, find themselves paralysed when the market actually falls. By setting a pre-determined trigger, they can avoid falling prey to fear.
1.ICICI Prudential Tax Plan
2.Reliance Tax Saver (ELSS) Fund
3.HDFC TaxSaver
4.DSP BlackRock Tax Saver Fund
5.Religare Tax Plan
6.Franklin India TaxShield
7.Canara Robeco Equity Tax Saver
8.IDFC Tax Advantage (ELSS) Fund
9.Axis Tax Saver Fund
10.BNP Paribas Long Term Equity Fund
You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds
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