Making informed investment decisions is crucial for wealth growth and tax savings. In this video, we’ll explore how to determine the right investment amount to maximise your tax benefits.
We will focus on factors like income, financial goals, and risk tolerance. To begin, you should assess your annual income. Remember that the eligibility limits vary for tax-saving investments. For instance, Section 80C allows deductions up to ₹1.5 Lakhs, but if your income is higher, you may need additional options.
So, we’ll take you through the concepts of Section 80D for health insurance or Section 24 for home loan interest. You will also understand how to align your investments with your financial goals to structure your tax-saving strategy. These might include saving for a home or retirement. By selecting investments with lock-in periods that match your goals, you can plan better for the future.
Next, you’ll learn about assessing your risk tolerance to find the right mix. For example, an Equity Linked Saving Scheme (ELSS) may suit those comfortable with market risk, while the Public Provident Fund (PPF) could offer more stable returns for conservative investors.
Optimising investments for tax savings means aligning them with your income and goals while managing risk. Lastly, staying informed on tax rules and consulting an advisor can further tailor your plan.
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