Generally, financial advisors review their clients’ investment portfolio 1-2 times in a year. April or the beginning of the new financial year is the ideal time to assess their portfolio and make any changes if required. Here are 5 things you must ask your clients to do:
Submit Form 15G, 15H
The TDS limit for post office and bank deposits was increased to Rs.40,000 from the previous Rs.10,000 in the Budget. Similarly, the TDS level for senior citizens more than 60 years old is presently Rs.50,000. If your clients’ income from such deposits crosses the Rs.40,000 threshold but the total income is less than Rs.2.5 lakh, they must submit Form 15G or 15H to their respective banks.
Always invest the raise
Majority of individuals receive their yearly increments around April. However, they often fail to capitalize this increase. Your clients might have Systematic Investment Plans (SIPs) in mutual funds but not many remember to raise the amount. Financial experts must encourage their clients to make optimum use of the increment by increasing their present SIPs or begin new ones.
Opt for ELSS
When clients commence their investments in ELSS funds right from April, they won’t have any trouble with tax planning when the financial year ends. Advisors must explain to clients that this type of spread out method will have two benefits. Firstly, it will produce higher returns and secondly, it will aid to deal with market volatility in the future.
Avoid investing large amounts
The upcoming Budget in July might announce some new changes which can affect taxpayers and their current investments. Hence, advisors should tell their clients to avoid lump-sum investments in any kind of tax-saving vehicles. The portfolio must be flexible so that any tax-related statements can be easily incorporated in the plan.
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