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Do not wait -- Invest to save tax now!
Mumbai, May 26, 2021
Do you make hasty decisions during the end of a financial year to choose the right tax-saving investment for your portfolio? Is that the story of every year? Don’t you think it’s high time you change that?
Investors often fail to understand that in the quest to hurriedly choose a tax-saving investment, investors often end up investing in havens that are not suitable for their investment portfolio, thus making wrong investment choices.
As a result, they are no longer fulfilling the purpose of investing, rather carelessly spending their hard-earned money and savings. Most investors often overlook the importance of saving taxes and investing early.
This article will throw light on why you should not wait till the last moment but invest now in tax-saving investments.
Planning your investments in the early stages help to judiciously analyse the investment options and choose the one that best meets your demands. It is essential to understand that early investment in the right tax-saving investments not only help to accumulate significant returns, but also help you save tax. Hence, it is advised to plan your taxes beforehand, ideally from the beginning of a new financial year. However, if you have failed to do so due to some other work, it’s better late than never. So start today.
Now, let’s focus on why you should invest early:
1. Incompetent decision at the last moment
Decisions made in the last hour are often inefficient and often lead to wrong investment choices. This is because the in the hurry to not miss the deadline to file for taxes, an investor is robbed of the much-needed time to do the research. As an investor, you can avoid it by filing your taxes beforehand.
2. If you invest early, you can start an SIP
If you do not have the entire amount to invest in mutual funds at the moment, SIP has got your back. Systematic Investment Plan (SIP) is an investment tool that offers to investors to invest in mutual funds. Under an SIP plan, an individual invests a predetermined sum of money at regular intervals for a predetermined period of time. What’s more there’s no minimum amount to invest in mutual funds. You can invest as low as Rs 100 in mutual fund scheme via SIP mode of investment.
3. Your money works for the entire year to generate returns
By investing early, you put your money to work sooner and attain more returns rather than later in the year. You also give your investments a better chance to grow as mutual fund investments tend to provide their maximum potential when invested for a longer duration of time.
Remember, last-moment decisions often lead to wrong investment decision as your decisions are highly compelled by mere tax-saving motives. Instead, you should consider other factors and ensure that it aligns with your investment portfolio. Happy investing!
(Disclaimer: This is branded content. Readers are advised to exercise due diligence and discretion before entering into any correspondence, investment, purchase, business dealings or any other decision on the basis of this content.)