5 money strategies to kick off the new financial year

As financial year 2024-25 begins today, it's an opportune time to rethink your financial strategies. Here are five strategies you can implement in the new financial year to ensure an improved and secure financial future.

1. Review Your Portfolio: Start by reviewing your financial portfolio with a fresh and analytical mind. A comprehensive review will enable you to assess your current financial standing and shed light on important areas such as your risk profile, the need for diversification, and whether your current financial portfolio aligns with your medium or long-term goals.

2. Right Asset Allocation: Maintaining the right asset allocation throughout market cycles should be an integral part of investing. Rebalance your allocation in equity or any other asset class if it has become substantially underweight or overweight. Reduce the allocation from the overweight asset class and reinvest the same money in other asset classes.

3. Tax Planning: Tax planning is indispensable in financial planning. Start your new financial year by understanding the various tax-saving provisions under the Income Tax Act to help trim your tax outgo. Explore tax-saving instruments like tax-saving fixed deposits, Equity Linked Savings Schemes (ELSS), etc. Consider opening a recurring deposit or ultra-short-term debt fund to meet tax investment requirements smoothly by year-end.

4. Nominees: If you haven't nominated your loved ones in your investments yet, now is the right time to do so. Appointing nominees also simplifies the process of claim settlements for your family in case of any unfortunate event and ensures that your hard-earned money gets into the right hands at the right time.

5. Align investments with goals: Aligning your investments with your financial goals is vital. Whether it's for retirement, your child's education, buying a house, or any other financial goal, plan investments that coincide with these objectives. Specific goal-oriented investments provide focus to your savings and ensure your money grows in the direction you require.

In conclusion, make the most of 2025 by adopting these financial resolutions. Remember, it's never too early or too late to start planning for a secure financial future. Your choices today will pave the way for a stress-free, financially secure tomorrow.