Tax Saving Investments: How combination of humans & technology will lead to better solutions

financialexpress.com:

The tax saving season is upon us – and with the recent proliferation of “do it yourself” investing, a lot of investors will make their 80C investments online without the support and advice of a human advisor. And quite a few of them will, unfortunately, end up making regrettable investing decisions!

While the convenience that technology has afforded us when it comes to paperless investing and portfolio management is undisputed – it is, like most things, a double-edged sword. Investing, after all, is a mental game just as much as it is a logical & analytical one. And although technology has made tax saving investment easier, has it made it more effective? Anecdotal evidence suggests – no, not quite.

First, you may end up getting stuck into a wrong product that’s not aligned with your goals and objectives at all. Just type “tax saving investment” into Google, and you’ll discover that the results are mostly peppered with life insurance companies who have literally monopolized all searches related to Section 80C related investments! Naturally, once you enter the insurer’s website, you’ll likely find yourself enamoured by all the glossy fine print and the well-thought-out financial planning process and end-up investing into a life insurance plan that’s probably not going to give you a great return over the long term. A human advisor could have proven extremely useful here by helping you dissect all the fine print and assess the suitability of the plan basis your long-term goals.

Also Read: Confused between Term Insurance and Life Insurance? Know the difference before buying a life cover

Second – even if you do end up investing into an ELSS (Equity Linked Savings Scheme) which certainly has the potential to generate