Do you squeeze your tax-saving investments in the last three months of the financial year?
Spread them over the entire year and you could earn better returns. If you invest Rs 5,000 in a tax-saving mutual fund (which earns 12% annually) every month instead of Rs 60,000 in three tranches in January, February and March, your investment would be bigger by about Rs 2,700 at the end of the year.
|If that Rs 2,700 is invested every year for 25 years in a scheme that earned 12% annually, it would add Rs 3.7 lakh to your retirement corpus|
And we have not even factored in the rupee cost averaging that accrues from monthly investments or the immeasurable benefit of not facing a cash crunch due to tax savings during the "Rush of March".