As children, we would save each rupee given to us by our elders. We would save it in piggy banks or steel boxes for the future or collect enough money to buy something we wanted.
As we grew up, we learnt to save more and realised the value of investments. Our needs increased and there were times when we couldn’t save or invest on time. We made use of Systematic Investment Plans to ensure that we are on schedule when it came to our investments.
Investments plans are helpful for two major reasons. They help us to create wealth and realise our long-term financial goals and dreams. The other reason is their utility during a rainy day when sudden expenditures can crop up. Here are some great investment plans which are quite beneficial to us.
In India, savings plans are very popular because the money which people invest earns interest at a steady rate and delivers good returns. This gives a peace of mind to the investors knowing that their money isn’t just kept idle.
Savings plan just as Public Provident Funds (PPF), Senior Citizen Savings Schemes (SCSS), New Pension Schemes (NPS) are some of the popular options. Another aspect which adds to their popularity is the fact that these plans make for excellent tax savings options too.
A mutual fund is a pool of savings which has contributions from various investors. The fund is invested into various assets such as equity, debt, and other assets.
These funds are managed by experienced fund managers who utilise their expertise to ensure the investors receive the best returns. Mutual Funds are popular because of their investment diversity which reduces risk from market trends, another reason for their popularity is affordability. These funds don’t require a high initial investment and due to the number of investors in the fund, the transaction cost is low too.
Unit Linked Insurance Plan (ULIP)
When you invest in ULIPs, a certain part of the part of the premium is invested in assets such as debt and equity instruments. The remaining premium is to give you a life cover. The plan holder gets to decide where the money should be invested, the most popular investment options happen to be equity and debt. ULIPs are easy to buy and have a low charge if you decide to surrender the plan. ULIPs can give high or low returns based on the market trends.
Money Back Policies
In a money back policy, the insured person gets a percentage of the total sum assured at regular intervals instead of getting a lump sum amount at the end of the term.
Such plans are ideal for those investors who have a low risk appetite and want a guaranteed return on their investments while looking for regular payments. In such policies, a certain amount called ‘survival benefit’ is paid at regular intervals until the maturity of the money back policy. In the case of death of the policyholder, the survival benefits cease to be active and the nominees receive the whole of the maturity amount.
Investment Plans offer a lot of benefits to the investor. You need to make sure to buy these plans from the right place. Firms like Aegon Life are an excellent place, they offer great investment products which ensure high returns along with great savings.