Smart and money-savvy investors will finalise their tax-saving investments in the first week of the current financial year. An SIP or bank mandate would help them to start their investments in a systematic manner. Investors start investing regularly in tax saving investments permitted under Section 80C to save taxes in the financial year. Investments in certain investments help taxpayers to save taxes of up to Rs 1.5 lakh in a financial year.

According to mutual fund advisors, investors should avoid basing their investment decisions on the prevailing market conditions. For example, you may think the market is going to be subdued this year. But you may be wrong. Sure, you can be right also. Think about the general mood in the market when the world was coming to terms with covid pandemic. The common wisdom was that the economy would be hit badly and the market may lose heavily for the next few years. However, the market had other plans and Investors made lots of money in the next two years instead.

You may attribute it to the easy money policies of governments globally, but the fact remains that the market surprised many investors. Some prominent investors were forced to admit that they predicted it wrong. The lesson: you can’t predict the market. Sure, you may be able to predict it correctly sometimes, but predicting it correctly consistently is impossible.

So, what can you do in such a situation? Well, it may sound common sense but the only thing you can do is just to go on with your life in an orderly fashion. That means you should invest regularly without bothering about the market. It also means that you should not stop or take money out of the market because of a bad phase in the market. Why this boring advice is given even in a tough time? Well, countless studies have proven beyond doubt that such boring investments are the only way to make money in the market. Investing regularly over a long period of time irrespective of the market conditions is the best way or the only way to create wealth

Mutual fund managers always say that investors always forget that a bad phase in the market is a sales season. You may get stocks cheaply, which will help you to make wealth. In fact, the whole idea behind investing via SIP is exactly that.
Source - Economic Times