Investing for tax savings

If you are one of those who are scrambling to invest at the end of the year – mostly you would fall in the category of investors who are parking money in sub optimal investments or investing at odds with your financial goals. The reason I say this is because financial goal planning precedes tax planning and not the other way around. There is no use investing in tax saving products with sub optimal returns, long lock-in if this does not align with your plan.

Once the goals are clear investments and an appropriate plan made to reach the goal, the investments should be done based on that plan.