Get ahead of the game: How to plan your financial year with ease

As you enter the new financial year today, filled with challenges and opportunities, here are points on keeping your finances in order to ensure your life continues easily.

• April-June quarter: Take this period to review your cash flows, expenditure, and investment portfolio. The economic growth is uncertain, and relentless inflationary pressures have sparked a slew of interest rate hikes. Now is the ideal time to identify your financial goals like children's education, important family event, and vacations and start systematic investment plans (SIPs) in mutual funds. Meet with your financial advisor to prepare a road map to include fresh investments, rebalancing and diversifying the current portfolio, and planning for health and insurance coverage for your loved ones.

 

• July-September: This period is essential to meet your tax obligations. Keep all your papers ready for income tax filing. Prepare your annual income and expense statement and file for your income tax promptly by July 31st. Go back to review your investment portfolio in September to account for any significant changes in the markets and re-allocate your funds if necessary. 

 

• October-December: It's time to sit back and enjoy the festivities and holiday with your family and friends. But be cautious as one generally tends to go overboard regarding monthly budget expenses during this time. Plan your budget wisely in advance, and spend within limits. 

 

• January-March: Before you know it, the end of the financial year will be upon you. Take this time to review your savings and investment portfolio to understand if you are on the right track to achieve your long-term financial goals. This period is also crucial to submit proof of investments to your employer. Factor in the macroeconomic outlook and the union budget proposals to plan your finances, including tax-saving investment avenues for the new financial year.

 

Finally, remember not to panic in adverse situations and take informed and regular investment decisions to minimise risks and attain your financial goals.

 

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As per Securities and Exchange Board of India (“SEBI”) circular no. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06, 2017on Categorization and Rationalization of Mutual Fund Schemes, and as amended from time to time, ELSS is a part of the Equity Scheme category. Investors may consult their tax advisors before making any investment decision.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.