Start planning your tax earlier to get better returns
Every year a large number of people rushes to put their valuable money in investment products that allow people to alleviate their tax burden. A year and after every year, the agents of investment products like Insurance, mutual funds push their funds towards customers to experience the opportunity of huge investment schemes.
Advantage of earlier planning:
If you are a concerning taxpayer who also has some investment needs, you should not wait for a last-minute chance. As a good taxpayer and investment lover, you should start making a plan right from the beginning of every fiscal year.
SIP Investment Plan:
SIP imparts discipline and has the potential to give the best returns to beat the inflation rate for the long term. This plan also allows the investor to harvest the benefits of rupee cost averaging. This implies that you can buy more when the price is low and vice versa.
Investment should be a primary objective:
Most of the people usually invest to save taxes rather than investing. For every individual, the primary objective should be investing, and Tax Savings should be considered as an incentive.
Gaze at the investment angle first:
If you have started investing from the beginning of the financial year, you will definitely look at the investment angle first. This would help in the smooth happening of tax savings throughout the next 12 months.
Common tax Saving Tools:
One can go for tax saving tools like Public Provident Funds, Insurance policies, National Savings Certificates, and ELSS Mutual Funds.
Last Minute mistakes to avoid:
Few are the investment mistakes made by most of the investors:
- Opting for high-risk investment products.
- Buying a new policy every year.
- Investing in low return policies.
- Missed out those investments that offer high returns.