Tax planning with SIPs

There are still a couple of months for the tax-planning pursuit to start. In February and March, many will suddenly realise that they had made certain tax-saving declarations to their companies at the start of the financial year. If they don't make those investments, their salaries will reflect a big tax cut. In order to avoid that pain, they will quickly find out some tax-saving avenue, invest in it and heave a sigh of relief. This behaviour is generally counterproductive. That's because in haste, you may end up investing in an avenue which provides you dismal returns while locking your capital for a long time. What's more, you may be forced to keep investing in that avenue in the subsequent years, thanks to the manda

This article was originally published on February 05, 2020.