5 Tips for New Financial Year

 

The New Financial Year is the best time to make changes for the better. These changes don’t even need to be big ones, they can be as small as you like. After all small steps in the right direction will still get you there!

Here are 5 things that you should do from a personal finance perspective in the New Financial Year:


1) Make an Investments plan

Now is a great time to start afresh and make an Investments plan. Think about what you want to achieve whether that’s a holiday, a new car or paying off your house. And plan about how you can get there. Just planning will make it feel achievable.

2) Do Annual Review of your portfolio

If you haven’t reviewed your portfolio for a while, there is a good chance that relative market performance of asset classes in last one year has changed your investment mix, causing your combination of mutual funds, stocks, bonds and cash to drift away from your plan. Procrastinating reviewing of your portfolio can add risk, which might cause portfolio to experience larger losses than you are comfortable with in the event of a down market.

Look for under-performers and switch them with good performers after considering their long-term performance. Review consistency and performance of the investments every 24-36 months to take corrective actions.

3) Review all your insurances

Preparation will protect you and yours if ‘what if’ happens. The harsh truth is that if you have all other areas of your life in order, but your insurances aren’t adequate then you or your savings are going to really take a hit (sorry).

4) Match your TDS entries in Form 26AS

While the tax deducted by your employer will reflect in the Form 16, check out your Form 26AS online to make sure that all other taxes (advance tax, TDS on investments and other direct taxes) have been rightfully credited to your PAN. If there is a discrepancy, notify the deductor immediately and get it corrected before the tax filling season starts.

5) Start your Tax Planning

Most people crunch their tax planning in the last two months of the financial year. Instead of waiting till March, start investing in tax saving options from April itself. This is especially important if you want to invest in ELSS funds. Starting from April will allow you to diversify the risk across time instead of putting in a lump sum at the end of the year.
Click Here for Do's & Dont's of Tax Planning

And remember if you need any more in-depth advice about your options, we are always happy to help. We have experts who are dedicated to helping you achieve your goals, just call +91-7021741077 or email investments.mota@gmail.com.


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Happy New Financial Year !!