Financial goal to liquidity need: What to get from tax-saving investments

Ensure they are also in sync with your investment horizon and liquidity requirements

Recently, while reviewing a woman client’s portfolio, a financial planner found a child insurance plan. These plans are typically used by parents to secure funds at milestones related to their child’s education and marriage. When asked why a single woman like her had purchased the plan, she said the institution that had sold it to her had said it would help her save tax.

During the prime tax-saving season from January to March, financial intermediaries push their products aggressively. In their rush to complete their tax-saving investments and provide investment proof to employers, many investors in the old tax regime purchase