Now that the frenzy of investments for tax planning under section 80C and other sections is behind us, it is time to ensure you make the right choice for the next financial year. Remember that investing is the main activity, while tax saving is just one of the outcomes. There are real risks if you make tax savings your goal. Often they surface in long lock-ins, poor returns, higher tax on realised returns and buying products that are not relevant to you.
Additionally, every investor has different financial goals. To achieve them in the most optimal manner, they need to strategise accordingly. To put things into perspective – both tax planning and goal-setting are critical pillars of robust long-term financial planning and you can’t achieve one without the other.
