Align choice with risk appetite, asset allocation and goals

With 13 days left to make tax-saving investments for 2024-25, investors face numerous options and the pressure of an impending deadline.

- HIMALI PATEL

Salespersons' aggressive tactics could further compound their difficulties.

Key considerations

Risk: Different tax-saving instruments carry varying levels of risk. "Low-risk options include Public Provident Fund (PPF), Employees Provident Fund (EPF), tax-saving fixed deposits, and Sukanya Samriddhi Yojana, which provide stable but moderate returns," says Suresh Surana, a Mumbai-based chartered accountant.

Unit linked insurance plans (Ulips) and the National Pension System (NPS) can have varied risk levels, depending on their equity-debt mix. Equity-linked savings schemes (ELSS) are completely equity-oriented. "While they have the potential to offer double-digit returns over the long term, they carry higher risk. They are suitable for investors with a high risk appetite," says Mohit Gang, co-founder and chief executive officer, Moneyfront.