8 Tips to Spend Your Tax Refund Money Wisely
Invest In Mutual Funds:
Let your tax refund work hard for you. For a normal investor, it makes sense to invest in mutual funds compared to stocks for wealth creation. Don’t get tempted by short term investment options, Think for long term investments. For investments with a horizon of more than 5 years, equity mutual funds are ideal. For less than 5 years, debt mutual funds serve as an excellent alternative for bank FDs.
Choose free online mutual fund platforms like Scripbox that makes it easy for you to invest in mutual funds.
Start/Top up your emergency Fund:
The world over, it is considered a healthy practice to maintain an emergency fund which you can withdraw from only for emergencies like losing a job, medical situations and so on. If you don’t already have an emergency fund, now it is your chance to start one. Experts suggest that the emergency fund should have a corpus of at least three to six times the current monthly salary. You never know the amount you would require during an actual emergency.
Read More: Know Why Equity Mutual Funds Investing is Better Than Buying Stocks
