Investment
What Are Investment Plans?
Investment Plans Are The Financial Security That Lasts for a Lifetime!
To put in simple words, Investment Plans are the financial instruments one creates to secure the future financially and build a substantial amount to cater to unforeseen circumstances. Thus, Life Insurance products are often used as investment plans, because they not only secure life, but also help to create wealth for future. There are other forms of investment plans which are discussed in a separate section on this website.
No matter what the event or phase, Investment Plans work for you at all times! Be it funding your child’s education, commemorating a special occasion like marriage, battling an unexpected injury, or gaining access to a steady flow of income at retirement!
Well-structured investment plans assist you in accumulating wealth and creating a corpus, so that you are always ready to meet life’s key milestones and daunting challenges, without having to give up on your financial stability!
Eligibility to Buy Investment Plans!
All Indian citizens, salaried, non-salaried, self-employed, any other professionals, and state/ central government employees above the age of 18 years are eligible to invest in saving plans offered by various financial institutions and insurance companies.
The documents that you must be able to produce if asked, while buying an investment plan:
- ☂ Address Proof In Original and an Attested Photo Copy For Records
- ☂ Photo Id Proof In Original and an Attested Photo Copy For Records
- ☂ Aadhar Card In Original and an Attested Photo Copy For Records
- ☂ Bank Passbook
- ☂ Pan Card In Original and an Attested Photo Copy For Records
Key Advantages and Features of Investment Plans!
Investment Plans are a boon for those who believe in systematic savings and want a corpus of funds to be available at the time of need. The whole magic lies in the returns over the term of investments.
SIP (Systematic Investment Plans), where you can invest in Mutual Fund Schemes at regular intervals to benefit in compounded returns, are one of the major advantageous feature of investment plans.
Investment Plans help you achieve bigger financial goals even with a smallest sum invested at periodic intervals. They come very light on pocket. For example a Mutual Fund investment of Rs. 500 at regular intervals of week, fortnight, month or quarter is an affordable way to save and garner good returns.
If you are asked to invest or save on your own, you might fail to do so at regular intervals. Investment Plans bring in the desired discipline to invest with dedication and focus. Inculcating a habit of investing with a small, yet, regular sum is practically much easier than investing lump sum amount every year.
These plans can be bought offline or online (without much paper work) and they are implemented within two days. Thus, making them the most effective tool to invest and save money. Online portals facilitate a paperless transaction and hassle free procedures.
You can opt to link your investment portfolio to your bank account, to enable uninterrupted automatic investments. Usually, salaried employees choose to map their SIP accounts to their salary accounts so that the process continues to be regular and linear. This is safe and secure and the best way to ensure a regular investment. You just need to be a KYC (Know Your Customer) compliant to start investing.
Benefits of Smart Investments
Whether you just got a new job or have taken the first step towards parenthood, it is important that you’re all prepped up to meet the upcoming responsibilities and challenges! In these situations, it is only a good investment plan that can serve as your best friend!
1. Generate Income and/or Capital Gains
2. Avail Tax Benefits
3. Accumulate Future Wealth
4. Guard Against Risks
Investment plans provide the funds for turning your dreams into a beautiful reality!
However, before taking the plunge, it is always advisable to compare investment plans with easypolicy.com, as it would enable one to reap the true benefits of this golden opportunity.
Types of Investment Plan
Investment plans aid in meeting the long term financial goals of an individual. Investment insurance plans can be broadly classified into the following:
Equities represent a type of security which renders ownership in a company. They can be purchased and sold in the stock markets or can also be bought via Initial Public Offerings. When invested for a long period of time, these instruments are capable of delivering massive returns, which are often higher as compared to other securities. Of course, they also pose a high risk.
These are fixed income instruments, and are primarily issued for the motive of raising capital. Private as well as Government institutions make use of them to accumulate funds. Bonds issued by Government bodies often come with low risks and fair returns.
Often revered as cost-efficient and highly diversified, mutual funds or systematic investment plans (SIPs) allow investors to invest as little as Rs. 1000 in a month. These instruments are managed professionally and abide by a set of sound regulations. There is a huge variety of mutual funds to choose from, primarily based on the risk and return probabilities.
Bank Deposits are the safest means of securing one’s extra income. The returns offered are low yet stable.
Helps meet your life protection requirements and keeps your money invested in low risk return options. At maturity, the policy holder receives guaranteed proceeds along with accrued bonuses, if any.
Help you to invest in a variety of funds, including equity, debt, & hybrid, according to your risk appetite and financial goals. While the risk is borne by the policy holder, these policies do offer the opportunity of enjoying great returns and amassing a hefty amount of money at the time of maturity.
Life insurance policies offer the dual benefit of life protection and investment for fund building. Depending upon the risk taking ability and financial commitments, one can opt for a traditional insurance plan which offers stability & guaranteed returns, or a unit linked policy, which provides high returns coupled with an elevated level of risk.
These are typical and traditional insurance products which come with life cover but with very low profits. These are for the individuals who are looking for guaranteed profits on their investment, but with a higher life cover. Ideal for those who want their small funds safe and secure, with a certain amount of profits on their assets.
