Define your financial goals before Investing

Tax Saving Mutual Funds Online

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HAVE you seen children playing this game called donkey's tail? On a board or chart paper, a donkey is drawn without a tail.

Each child is blindfolded and then given one chance to mark the tail of the donkey.
The child who draws the tail closest to the donkey wins the prize.

Well, going on an investment path without any goals is like playing donkey's tail.
You don't know where you are heading. If the place you actually reach is where you want to be, consider you self lucky! Should I buy the new iPAD2? Should I start this SIP (systematic investment plan) my friend was talking about? Can I afford to go for a weekend getaway now? Should I make a prepayment on my home loan or invest in the equities instead since the markets are bearish? Is my insurance adequate? These are all questions in your mind to which clear answers can only come if you have goals.

You need to look at your life and take stock. What are my goals ­ short-term, medium-term and long-term? Depending on the type of person you are and the stage of life you are at present in, you will have a set of goals, different from what you may have a few years later and in all likelihood different from your friend's. Typically, gadgets and holidays when you are single, a four-wheeler when newly married, schools and a house when you have kids, their college and your retirement as you reach your 50s. Whatever the case, you need to identify your goals, qualify them in financial terms and prioritise them.

This will give you a clear picture of where you are heading. Is the income you are earning enough? Do you need to earn more, do something different, or change your investment pattern? Do you need to change your goals as they may be unrealistic given the present set of circumstances, or can you afford to continue as you are?

Take for example, your wish for an iPAD2. Now, if you have defined a goal for saving Rs 1,00,000 this year, so that, you and your family can go for a holiday to Sri Lanka in the summer and you have managed Rs 75,000 so far. Then you can make an informed choice. Evaluate what is more important and then decide, rather than being blindly led by wants.

Pursuing this example further; you can define a goal of an iPAD2 and then see how you can put aside some money each month towards this goal, perhaps by skipping eating out and movies for some time.

This way you can end up with showing off the pictures of your vacation in Sri Lanka on your iPAD2.

Defining goals, whether financial or otherwise, gives your life a direction, a target for your finances and control to you. The sense of accomplishment you get when your goals are accomplished one after the other is akin to none.

Even when unfortunate things happen, for instance an accident, and suddenly life is out of control, then `all iz still well', since you know exactly what are the things that will get affected by this turn of events and how to manage them, rather than being completely lost without idea of how this accident will set you back.

Goals are the compass to your life and something you should take very seriously, and involve your family/spouse in this process of setting them down. It is also important to update and review your goals periodically and regularly.  

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

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These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. HDFC TaxSaver
2. ICICI Prudential Tax Plan
3. DSP BlackRock Tax Saver Fund
4. Birla Sun Life Tax Relief '96
5. Reliance Tax Saver (ELSS) Fund
6. IDFC Tax Advantage (ELSS) Fund
7. SBI Magnum Tax Gain Scheme 1993
8. Sundaram Tax Saver

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Current open Infra Bond Application form

 

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