Q:I am planning to invest Rs.50,000 in ELSS as I heard it gives us tax benefits and growth of money. which ElSS is best?

Answer:ELSS investments are deductible under Sec 80C (investments upto 1 lakh). You could invest in Sundaram BNP Paribas Tax Saver and HDFC Tax Saver funds. They are both good performers and have a long track record. There is a lock in of 3 years; we recommend to opt for either Dividend Payout option or Growth; the best way to invest is through SIP (Systematic Investment Plan)

For more info, see the following article on InvestmentYogi:

http://investmentyogi.com/cs/blogs/taxes/archive/2008/02/13/understanding-elss.aspx

Warm Regards,
From Your Expert @ InvestmentYogi