How important is the risk profile when it comes to investment for tax saving?
Firstly there isn’t anything like risk profile. No textbook of investments anywhere in the world has chapters on risk profile. Few of them have tried to describe investor but they are all very fluid and change with circumstances. Make investment decisions to reach your goals and in the process if you can save tax it is good. Fortunately the government has given tax incentives for majority of our financial goals. Eg, for health insurance Sec 80D. For home loan principal repayment 80C. For home loan interest Sec 24. For life insurance Sec 80C. For children school fees Sec 80C. For children higher education loan Sec 80E. For retirement Sec 80C. For other long-term goals where one wants to use equity as asset class – Sec 80C. For short-term goals where one needs to invest in debt based instruments Sec 80C. For capital gains and purchase of house Sec 54. For capital gains and purchase of first house Sec 54F. For saving on capital gains Sec 54. For payment of rent Sec 80GG. Insurance is seen
