Do Not Invest Just For The Sake Of Tax Saving; Check These Things Before Investing To Earn More Returns

by Shatakshi Gupta

Thoughtful and right investment helps you to make money without falling into debt trap and meet future financial needs. According to experts, one should start investment as soon as the income starts. There are many options available for investing in the market today, including stocks, unit-link insurance schemes, bonds, fixed deposits, RD, mutual funds and the National Pension System.  In such a situation, it is important to keep some things in mind before choosing any scheme for investment.

Invest, but not only to save tax

 Investment in our country is directly linked to saving tax or saving money and no objectives or targets are set for investing.  Because of this, most people do not get as much return on their money as they should get. Many people invest anywhere in a hurry to avoid tax, which is wrong.  Nowadays there are many options available in the market for tax saving, so before investing, all the options available should be compared thoroughly.

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 Make small goals

 Never invest for too long or avoid making big goals. The larger target should be divided into smaller parts. This will also enable you to monitor your investment properly. If in case, your investment is not giving the right return, then after some time( in case of short term investment) it matures and you can invest it elsewhere.

 Start investing as soon as possible

 The best time to start investing is when your income starts. As soon as your income starts, you should start investing as per your capacity. As this Corona era has taught people that only your savings are useful in bad times, so it is right to start investing as soon as possible.

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 Do not invest huge amount in a single place

 Never invest all your money in one place. You should diversify your portfolio, because the money you have invested does not necessarily give you returns.  Suppose you invest 100-100 rupees in two places.  You got 10% return from the first and 5% loss from the second place. So even then you will remain in profit. If you have already lost 10% and gained 5% from the second place. So in such a situation, the benefit from the other place will reduce your loss.

 Keep in mind the investment period

Take special care of how long you want to invest your money or can do it. Because many saving schemes come with a lock in period. That is, you will not be able to withdraw your invested money in this period. That is why take special care that there is no lock-in period in the place where you are investing.

Compare then invest

One mistake of yours can ruin your years of earnings. In this case, before investing anywhere, you should compare the investment options properly. You must see which scheme is giving how much interest over the years and whether it is safe to invest in it.