Section VI: Income Tax and Your Financial Planning

• Ques: Systematic Investment Plan (SIP) is a good tool for disciplined investment in equities
• Ans: Key points:
  • Systematic Investment plan is the latest and smart way to create wealth through equity market.
  • Invest on monthly basis with little money, no need to time the market, just average the cost through SIP and reduce the risk.
  • The auto debit facility makes it further easy.
  • For salaried employee, it makes them more regular in saving for tax through SIP in ELSS otherwise last month rush may lead to pay more tax.