Why should you start ELSS from April itself?

Why should you start ELSS from April itself?

Why start ELSS from April itself?    Tax is on my mind Tax is in my soul Tax is in my life I am just taxing on. Every taxpayer goes through this during the last quarter of the financial year. Sudden decisions are made without proper planning. To save tax becomes the objective for investing.A lump sum amount is then invested in the Equity Linked Savings Schemes (ELSS). When the Rs 1.5 lakh eligible for deduction is allocated to different asset classes, you heave a sigh of relief. But there is a problem with this method. It is always better to invest in ELSS through systematic investment plan (SIP). Begin your SIP from April to get the most of your ELSS. Here’s why you should start investing in ELSS right from the beginning of the financial year: Equity-linked As the name suggests, ELSS invest most of the accumulated funds in stocks. Thus, as applicable to every investment in the stock market, you must begin early to get the maximum benefit. Equity is known to give best returns over the long-term. The sooner you invest in ELSS; your funds get more time to multiply. If you begin investing in December/January, you are losing the benefit for nine months. Rupee cost averaging Stock markets fluctuate very frequently. So, when you invest in one go, how can you be sure that you got the best price for purchase dunits ? What if the market fell further after you invested Rs 30,000 lump sum in ELSS? Timing the market is a difficult task. To overcome the market volatility, the best thing to do...
Lessons for investors in India from Warren Buffett’s annual letter

Lessons for investors in India from Warren Buffett’s annual letter

 Top 5 points from buffet’s 2016 letter that are relevant in the Indian context One of the most-awaited events in the global financial world is Warren Buffett’s annual letter to Berkshire Hathaway shareholders. Buffett typically provides interesting investment insights and there is much investor can learn from his perceptive thinking. Though his letter is for a largely American audience, there are numerous takeaways for investors around the world. Here are 5 points from Buffett’s 2016 letter that are relevant in the Indian context. 1. DON’T PAY TOO MUCH FOR GOODWILL What he said “As is the case in marriage, business acquisitions often deliver surprises after the “I do’s.” I’ve made some dumb purchases, paying far too much for the economic goodwill of companies we acquired. That later led to goodwill writeoffs and to consequent reductions in Berkshire’s book value.”  Lesson for Indian investors In addition to tangible assets like land, office building, factory, etc. intangible assets like brand, reputation and the like are also considered while valuing a company at the time of acquisition. These intangibles are accounted as goodwill. Existing goodwill is good because the acquirer does not have to allocate additional financial resources to build goodwill. But as Buffett says, it will be foolish to pay a very high price for goodwill. Due to this goodwill impact, companies with good brands usually trade at higher multiples and investors need to be wary. Paying too much, even for a great branded company, might not be a good investment. 2. TAKE ADVANTAGE OF MOVEMENTS What he said “Charlie and I have no magic plan to add earnings except to dream...