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Investment Plans

At various life stages, one need funds. An individual need to build the corpus. Whether the need is for child's education, marriage or retirement savings. When one starts looking up for various ways to build funds, one tends to look investment plans where your money grows while you sit back. Because of the number of investment avenues, there is no simple solution to it. However, the simplicity of investment plans offered by the most life insurance companies is one of finest options available.

What is an Investment Plan?

Investment plan is the simplest ways to build wealth over the time. Life insurance companies offer various investment plan options. These are the wealth creation products for the future when you will require it. It requires planning and understanding of different options available.

Types of Investment Plans

Unit Linked Insurance Plan

Unit Linked Insurance Plan (ULIP), is a combination of insurance and investment. In ULIP, a part of the premiums is deducted as insurance, and the other part of the premium is invested in market. Funds can be invested in bonds, equity, debts, market funds, or hybrid, depending on the investor. It offers transparency about the investment of your funds which you can evaluate and track as Net Asset Value (NAV). ULIP offers both coverage and investment options. As a Survival Benefit, you get the Maturity amount, depending on the prevailing prices of the units. As a Death Benefit, the nominee will receive the sum assured. Example: Investor pays premium of Rs. 30,000 for a policy tenure 30 years. The returns are indicative and related to the market.

INVESTORPOLICY TENUREANNUAL PREMIUMNOMINEE RECEIVES IN 4% / 8% PLANASSUMED RETURNS @ 4% / 8% P.A.
Age: 30 years (M)30 yearsRs. 30,000Rs. 4.94 Lakh/ Rs. 6.64 LakhRs. 13.6 Lakh / Rs.27.3 Lakh

Endowment Plan

Endowment plan is the traditional insurance product with an investment opportunity. It is a combination of coverage and investment. Funds are not linked to market. The premiums you pay throughout the period is divided into two parts:

  • Part of the premium is used as an investment
  • Another part of the premiums is kept as a risk cover On maturity, the returns are guaranteed with profit, although minimal. In case, if the investor dies before maturity, the nominee receives the sum assured.

Example: Investor pays premium of Rs. 30,000 for 12 years. The policy tenure is 17 years. The chosen sum assured is Rs. 5 Lakh. On maturity, policyholder will receive Rs.5.75 Lakh. If during policy tenure, investor passes away, nominee receives Rs.5.75 Lakh.

INVESTORPOLICY TENUREANNUAL PREMIUMNOMINEE RECEIVESON MATURITY
Age: 30 years (M)17 yearsRs. 30,000 for 12 yearsRs. 5.75 LakhRs. 5.75 Lakh

Money Back Plan

Money Back plan is a type of investment plan by life insurance companies that combines investment and insurance. It offers death risk coverage and returns as a percentage of sum assured at equal intervals. Pay premiums for a pre-decided number of years, and receive payouts every year after the premium payment period ends. The policyholder receives money periodically. On maturity, the rest of the sum assured is paid back. The survival benefit also comes with terminal bonuses. In case if the investor passes away during the term, the coverage is paid to the nominee. Example: Investor pays premium of Rs. 35,000 for 23 years. The policy tenure is 28 years. The sum assured chosen is Rs. 4 Lakh. On maturity, policyholder will receive Rs.5.75 Lakh. If during policy tenure, investor passes away, nominee receives Rs.5.75 Lakh.

INVESTORPOLICY TENUREANNUAL PREMIUMPERIODIC RETURNSNOMINEE RECEIVES IN 4% / 8% PLANASSUMED RETURNS @ 4% / 8% P.A.
Age: 30 years (M)28 yearsRs. 25,000Rs. 1.2 Lakh [on every 7th year (3 times during policy tenure)]Rs. 4.3 Lakh/ Rs. 5.5 LakhRs. 3 Lakh / Rs.5.85 Lakh

Fixed Deposits

Fixed Deposit, also referred to as Term Deposit, is an investment where the rate of interest remains constant throughout the nominated term. Therefore, the investor has a clear idea about the returns that his/her investment is expected to generate on maturity of the FD. This serves as an effective investment plan for risk-averse investors. The interest rates differ between banks and financial institutions offering FD schemes.

Bonds

Bonds are debt investment plans that enable investors to loan funds to an entity like an organization or the government, which is looking to borrow money for a certain pre-decided period, and at a specific rate of interest.

Public Provident Funds

Introduced in the year 1968 by the National Savings Institute, under the Finance Ministry of India, it is one of the most popular savings and investment instruments, especially for saving taxes. It requires a minimum annual investment of Rs. 500 and a maximum of Rs. 1,50,000, and attracts an annual interest rate of 7.6%, which then gets compounded. Public Provident Funds offer the flexibility of paying the investment amount in lump sum or through a maximum of 12 easy instalments in a financial year. The maturity period ranges from a minimum of 15 years and up to a maximum of 5 more years, as per the investor’s financial objective. The invested amount can be transferred from one bank to another within India and serves as security and collateral at the time of loan application from the third financial year. Investors can avail tax deductions as per Section 80C of the Income Tax Act, 1961. The accumulated interest is also entirely tax-free.

National Savings Certificate

National Savings Certificate, abbreviated as NSC, is a government-backed, tax saving investment. It can be purchased by any resident of India from a post office within the country. They are issued in denominations of Rs. 100, Rs. 500, Rs. 1,000, Rs. 5,000 and Rs. 10,000.
It is an effective instrument for investors with a low risk appetite or those who want to diversify their portfolio by investing in a fixed return instrument. Currently, NSC is available for subscription for a term of 5 years on a minimum investment of Rs. 100. There is no upper limit applicable on this investment plan. The rate of interest changes as per the regulations set by the Ministry of Finance and gets compounded annually. However, it is paid out only after the completion of the maturity term without any TDS deduction. The principle is eligible for tax benefits as per Section 80C of the Income Tax Act, 1961 till a maximum of Rs. 1.5 lakh annually.

National Pension Scheme

National Pension Scheme (NPS), launched in January 2004 is a government-sponsored pension scheme that is especially designed for government employees. This investment scheme has been extended to non-government employees as well 2009 onwards. It serves varied investment objectives. An investor may choose to contribute to this pension scheme as per his/her discretion, or decide to withdraw a certain percentage of the corpus in a lump sum and invest the remaining corpus in annuities for building a robust corpus for post-retirement years.

Mutual Funds

A mutual fund is an investment plan managed by a professional Asset Management Company (AMC) that bundles the funds collected from all their investors and invests this amount in equities, bonds and securities. These investments are carried out as per the unique investment objectives and risk appetite of each of their investors. The units are purchased and sold according to the prevailing NAV (Net Asset Value) to create a robust portfolio of bonds, securities, and equities.

Tax Saving Mutual Funds

Equity-linked Savings Scheme (ELSS) is the only mutual fund option that offers tax benefits. It is a long term equity mutual fund investment with a minimum lock-in period of 3 years and a minimum investment amount of Rs. 500. An ELSS mutual fund enables investors to generate long term capital growth despite market volatility.

Benefits of Investment Plans

Wealth Creation

Investment plans with life insurance are sure shot way to accumulate wealth over a period. As an investor one can choose suits the best depending on the risk, returns and disposal amount to buy a plan. In future, when you would require funds for child’s education, child’s marriage, retirement, pension, etc. life insurance investment plans will financially aid you.

Financial Protection

Life insurance policy provides life coverage with investment options, which takes care of the family financially as both Survival and Death Benefits are provided. At maturity, policyholder receives the returns with profit in the pocket. This way one can provide long-term financial security to the family. In case of an unfortunate eventuality, policyholder dies before maturity period, the insurance company will pay the nominee the sum assured. In this way, it provides financial protection to the family of the policyholder.

Death Risk Coverage

Not all investment avenues offer death risk coverage options. However, investment plans by life insurance do. These plans include death risk coverage. This way, your family’s financial needs are taken care even in your absence. The sum assured is paid to the nominee in the event of the death of the policyholder.

Retirement Savings

One can buy these investment plans at any given time of life stage. That said, this allows you create the corpus for the retirement. One can buy and build funds that can be used at the later stage of life. In this way, even after retirement the investor will financially independent.

Flexibility

Flexibility of money to be invested and the duration. One can opt as feasible, depending on the needs and planning.

Save Taxes

Investment plans are not only risk cover or wealth accumulation plans, but these plans also help in tax savings. As per section 80C and 10(10D) of Indian Tax Act, premiums and payout are exempted from tax. A perfect combination of savings, wealth creation, financial protection with tax benefits.

Loan Facilitator

Life insurance investment plans also act as a loan facilitator. But, it depends on the coverage one has taken, premiums paid, eligibility for the loan amount, etc.

Features to Check before Buying Investment Plan

Mentioned below are the features you need to check before buying an investment plans:

  • Where are you investing: You need to know and be sure about where you are investing and how much risk is involved.

  • Look for complete transparency: Look for investment plans that are completely transparent.

  • Study past performance : The objective of investing is to gain returns. For which, you must check past performance report of the funds where your money will be invested in. This will help you to know how much returns can be expected. As per your investment funds, you can see their long-term or short-term performance report

  • How much are you charged: You may be charged a minimal amount as a commission to manage the portfolio. So you must check how much you are charged just to ensure you are not overcharged. And if yes, why!.

  • Know your fund house: How reputed or well-known is your fund house. As you put your trust in the fund house it is essential to know about their claim settlement ratio. . Plus, you are giving your hard-earned money into their hands to utilize on your behalf and to the best of their knowledge and experience, it is your responsibility to know your fund house.

Things to Check Before Investment Planning

Goal Planning

Get clarity on the financial objectives that you want to fulfil through your investment plans. Is it for long term or short term goals? Short term objectives may be planning for a world tour or purchasing a car or a home, while long term ones may be arranging for your child’s higher education and/or marriage, or building a corpus for your retired life. For short term goals, you can consider investing in a ULIP, while a term or an endowment or a whole life plan may be an effective investment plan for meeting your long terms goals.

Dependents

Do you need to plan for yourself only or you have a family whose future you need to secure financially? If yes, consider the number of your dependents – spouse, children and aged parents.

Current Expenses

Decide on the amount that you would be able to contribute towards your investment plan without compromising on your existing lifestyle and expenses.

Future Expenses

Predicting future expenses is difficult. More so, because you need to consider the rising expenses and inflationary effects. Therefore, it is recommended that you plan for a higher amount than what you need to support your current lifestyle.

Major Expenses

Keep in mind the major expenses like your own marriage plans, child’s education and marriage, or any other necessities or aspirations that you may have to decide on the amount that you can invest in other investment plans.

Insurance Cover

Your insurance cover should be sufficient to meet all your and your family’s financial requirements, irrespective of life’s uncertainties. You can start investing in an investment plan, targeting a certain sum assured, and increase your cover with time, if necessary.

Fund Planning

Debts – Remember to calculate the prevailing debts like loans and EMIs against your name while deciding on other investment plans. Analyze your ability to take on further debts, and invest in them only when you are sure of your ability to repay them within their due dates.

Provision for Alternate Income

Unforeseen incidents make it necessary for you to financially safeguard your life and that of your dependents against all odds. A lack of stable source of income may arise not just after retirement, but also due to total or partial disability or even death due to an accident. Opt for a life cover that will financially support you and your family, in case such a situation arises.

Supplementary source of regular income

Is there another member in your family who is also a financial support? If yes, you can share the premiums that you pay towards investment plans, or one of you can bear the current family expenses while the other pays towards the investment plans.

Calculation of the Premium Amount

Know the exact premium that you have to pay towards your chosen investment plan. This will enable you to plan our finances well and, most importantly, decide whether it suits your pocket. Online premium calculator available on the websites of investment companies offer investors the convenience of getting free premium quotes. All that investors need to do is access the online premium calculator on the websites to view the quotes of different investment plans, compare between them and take a well informed decision.

Compare Before Applying for Investment Plans

Cover

Do thorough research of the benefits being offered by each investment plan and compare between them before purchasing one. Opt for one that meets your unique investment needs.

Add-on Riders

There is a varied range of add-on riders designed by companies offering investment plans. However, every plan may not be necessary for every investor. Know about the features and benefits of each rider and opt for only the ones that are suitable for your unique needs.

Premium

Start with a premium that you can afford and increase it as and when you can.

Option to Increase or Decrease Premium

It is recommended that you opt for an investment plan that enables you to customize it as per your requirements even during its policy years. This allows you the convenience of starting with a lower cover and gradually increasing it as per your rising annual income.

Returns

The investment plan you should invest in will depend on the returns you expect to receive and whether you are looking for a short term or long term investment plan. This, in turn, will be determined by your risk appetite. The higher your risk appetite, the higher will be your scope for enjoying higher returns. For instance, equity mutual funds are usually a great option for investors looking for high returns within a short span of time. Hence, they are best suited for high risk takers. On the other hand, balanced funds are

recommended for those looking to generate healthy returns over a long term and, therefore, they are apt for investors with a low risk appetite.

Type of Payouts

There are some investment plans that offer regular pay outs, others offer a one-time payment, while still others that offer a mix of both. Choose the option that best suits your purpose of investment.

Alternative Investment and Insurance Options

A single investment plan may not be sufficient to meet multiple aspirations for the future and securing the financial needs of your family. Hence, it would be wise to invest in more than one investment plan, each meant for a different goal.

Riders of Investment Plans

An investor of life insurance investment plan can opt riders. Ass the investment plans also combines death risk coverage, optional riders under such policy is available. Riders expand the policy coverage. In addition to the basic sum assured, rider benefits are also paid.

  • Accidental Death Riders: If the policyholder dies the accidental death, the insurance company will pay the sum assured plus the rider benefit to the nominee.

  • Accidental & Total Permanent Disability Rider: If the policyholder suffers total permanent disability due to the accident, the insurance company gives the rider benefit to the life insured.

  • Critical Illness Rider: On diagnosis of any major critical illnesses such as heart attack, cancer, stroke, kidney failure, paralysis, coma, the insurance company pays the rider benefit.

  • Waiver of Premium: In case of a vanilla term insurance, if the life insured suffers any disability because of which is unable to pay any future premiums, the policy terminates.

  • Accelerated Death Benefit Rider: On diagnosis with a terminal illness, such as Cancer, Leukemia. AIDS, Ebola, the insurance company pays a part of the sum assured in advance and the rest to the nominee.

Best Investment Plans in India 2018-19

Insurance CompanyProduct TypeProduct
HDFC LifeULIPHDFC Life Click2Invest ULIP
SBI LifeULIPSBI Life – eWealth Insurance
MAX LifeULIPMAX Life Fast Track Growth Fund
Bajaj AllianzULIPBajaj Allianz Future Gain
TATA AIGULIPTATA AIG Life Invest Assure Flexi Supreme
HDFC LifeEndowmentHDFC Life Sampoorn Samridhi Plus
LIC IndiaEndowmentLIC New Endowment Plan
Kotak Life InsuranceEndowmentKotak Premier Endowment Plan
AEGON LifeEndowmentAEGON Religare Premier Endowment Insurance
Bajaj AllianzEndowmentBajaj Allianz Save Assure – Endowment Policy
Bajaj AllianzMoney BackBajaj Allianz Cash Assure
LIC IndiaMoney BackLIC New Money Back Plan – 20 years
HDFC LifeMoney Back HDFC Life Super Income Plan
SBI LifeMoney Back SBI Life Smart Money Back Gold
Birla Sun Life Insurance Money BackBSLI Bachat Money Back Plan

Eligibility Criteria to Buy Investment Plan

The eligibility criteria to buy an investment plan are:

  • One must meet the entry age criteria as mentioned in the policy wordings before purchase.
  • One can’t extend beyond the maximum age allowed under investment plan.
  • You must adhere to the plan’s premium payment term and mode.

Documents Required for Buying Investment Plan

Mentioned below are the documents required for buying an investment plan:

  • Income proof - Salary slips, income tax returns, bank statement, etc.
  • Address proof - License, Aadhaar card, Voting card, passport, etc.
  • Id proof - PAN card, Aadhaar card, voting card, etc.
  • Age proof - Aadhaar card, voting card, passport, driving license, etc.

How to Buy Investment Plan Online in India?

Almost all investment companies have an online presence. With so many options that promise you good returns, it becomes necessary to compare to choose the best. To invest in the best investment plan, you can compare investment plans online. With investment comparison tool available online, you can easily compare investment plans and their features. The comparison of different investment plans will get you quotes spontaneously. You can easily compare, differentiate, and choose the best investment plan that suits your requirement. It will save you money and time.

  • Visit insurers website or any web aggregator site.
  • Check various options
  • Enter some basic required details, which will help you to get the best quotes
  • Choose an investment plan as per your suitability.
  • Once you finalize, you need to fill the proposal form.
  • After filing up the proposal form, you need to upload the required documents online and pay the premium.

FAQs on Investment Plans

Is investing in Unit Linked Insurance Plan (ULIP) a good idea?

Unit Linked Insurance Plans (ULIP), provide life insurance cover and an opportunity to invest and build funds. Earlier, the charges were high, but post 2010, ULIP has changed, especially, when it comes to charges which means premiums are utilized in investing. Another aspect is, lock-in period has changed from 3 years to 5 years. ULIP offers an ample of opportunity to invest depending on the risk appetite of the investor. It gives an opportunity to invest in different products like equity, debt, bond or money market or hybrid. ULIP offers flexibility to change the premium payment terms, the sum assured and the choice of premium payment frequency. Moreover, you can enhance your plan with riders.
One thing you should keep in mind that you must invest in ULIP only with a long-term horizon, at least, keeping 10 years or more years of investment in mind.

What are the top investment plans with high returns?

The top investment plans to gain high returns are equities and large-cap mutual funds. However, it is advisable to consult your financial planner to help you in investing and balancing your investment portfolio.

What are the best short-term investment options in India?

There are many options to invest for a short term, like fixed deposits, savings accounts, equity-linked saving scheme (ELSS), recurring deposits (RD), money back plans, mutual funds, etc. If you are planning to invest for a period of 1 year then recurring deposit would be the best option. As in this plan, you pay money on a monthly basis and you also receive interest on the money invested. However, the interest is taxable. And if, you are planning to invest for more than a year, equity mutual funds and fixed maturity plans are most suitable, as these plans offer high returns and are more tax efficient when compared to other short-term investment options.

I want to secure my child’s future by investing in a best child investment plan. How do I go about it?

You can opt for different types of life insurance policies. You can opt for ULIP or Money Back plans or child plans to meet your child’s dream. Since all life insurance companies offer child plans with different variants under a plan, you can always opt for child plans to meet all your child’s educational goals.

Further Readings:

Child Plans in detail

Secure a Bright Future for Your Child With a Customized Child Plan

5 Things to Look For While Choosing a Child Plan

Are there any good reasons to invest in a pension plan in my 40s?

Yes, there are plenty of good reasons to invest in retirement plans. If you haven’t planned your retirement yet, it is a good time to start now. It is always better to invest as soon as possible. If you have been doing your financial planning right so far, by now, you may be less burdened with loans and worries about your child’s education planning. It is said, “You can meet all your financial needs but retirement goals.” Because you can opt for loans or choose different financial tools to meet those goals. However, there is no facility to opt a loan for your retirement. It is essential to build a corpus on your own with the help of various financial vehicles. It depends on how you plan your retirement. However, pension plans are the safest and easiest ways to plan your retirement. Investing in pension plans in your 40s give you an ample amount of time before you retire. You would still have at least 20 years of time frame to build a corpus to enjoy your post-retirement time. Different investment plans you can look forward to your retirement planning when you are in your 40s are:

  • Retirement Plans
  • ULIPs
  • Money Back Plans
  • Whole Life Plans

Further Readings:

How to How to Use Life Insurance in Your Retirement Planning?

Types of Pension Plans in India

How You Can Plan for Your Retirement in Your 40s

Things to keep in mind before you invest your money

Below mentioned points you should keep in mind before investing:

  • Ensure you are clear with your investment objective.
  • Do not put all your money in one basket. Neither put all your money into investment.
  • Take time, but choose wisely.
  • It is always better to seek advice from a professional and certified advisor before investing.
  • Don’t just invest because it says, “high returns,” please do the necessary research.
  • Compare investment plans before you buy.

Why should you buy an investment plan?

You should buy an investment plan because:

  • They provide you and your family a financial protection, safety net, and act as a financial aid in case of an emergency.
  • You have an opportunity of accumulating wealth over a period without doing much from your side.
  • You get tax exemption under Section 80C and 10(10D).

What are the best investment options under section 80C?

Today, the market is loaded with different investment plans, one best than the other eligible for deductions under Section 80C. Let’s have a look at some of the best investment options that would make your life a little better by savings those extra bucks on tax deductions under Section 80C:

ELSS – Equity Linked Savings Scheme : The ELSS is nothing but mutual funds that are tax saving. They invest almost 65% of your assets in the stock markets. You can save tax under Section 80C if you invest in ELSS funds up to Rs.1.5 lakh. The lock-in period here is the lowest which is 3 years compared to other investment options under Section 80C. The drawback of the ELSS is that the returns offered are not guaranteed. You may get 12-15% returns from the best performing ones only over long term. These funds offer liquidity once the lock-in period is over.

EPF – Employee Provident Fund : You as an employee can also earn a tax break up to Rs.1.5 lakh in case you invest in an employee provident fund (EPF), under Section 80C. Here, your employer deducts almost 12% of your basic salary and invests in the EPF fund or any other recognized provident fund. You can earn a good interest rate of 8.8% in case you invest in EPF funds.

NPS - National Pension System : This scheme basically is an Indian Government organized pension scheme that helps the retired troop with a regular pension. NPS offers tax savings of up to Rs.1.5 lakh under Section 80C and Section 80 CCE. You can also claim an additional deduction of up to Rs 50,000 under Section 80CCD (1B), which is in addition to Rs 1.5 lakh permitted under Section 80C.You as an investor can choose or subscribe to any plan depending up on your risk profile. The highest capping is 50%. You may also change the pension fund manager. NPS comes with a major drawback that the maturity amount is taxable. Besides, it doesn’t offer guaranteed returns.

FD – Tax Saving Fixed Deposits : The Tax-Saving FDs come with a lock-in period of 5 years. You can also earn a tax break up to Rs.1.5 lakh in case you invest in Tax Savings FDs, under Section 80C. The interest rate of the tax saving FDs however vary from one bank to another ranging from 7 to 9%. The biggest advantage of these type of FDs is that they offer guaranteed returns with 100% capital protection.

Are savings bonds a good investment?

Bonds are debt investment plans where investors can loan funds to an entity like an organization or the government. This borrowed money is invested by the government or organizations for a specific period and at a certain interest rate.

How can I grow my money fast?

The returns that you enjoy from an investment plan depend on the type of plan that you have invested in and the term invested for. If your investment objective is aimed at fast capital growth, equity mutual fund investment is a wise option. However, you need to have a high risk appetite as the funds are exposed to high market volatility to generate high returns within a short span of time.

How do I invest money wisely?

You need to keep in mind certain parameters like your investment objective, risk appetite, whether you’re looking for meeting long term or short term goals, etc. to decide on the type of investment plan you should invest in.

How can I invest my future money?

To invest your future money, have a clear idea about your financial goals, whether they are long term or short term, risk appetite, number of dependents, existing and future expenses, among other factors, to determine the type of investment plan that will be best suited for your needs and provide standing instructions for the future money to be invested in your chosen investment scheme.

How can I invest my future money?

To invest your future money, have a clear idea about your financial goals, whether they are long term or short term, risk appetite, number of dependents, existing and future expenses, among other factors, to determine the type of investment plan that will be best suited for your needs and provide standing instructions for the future money to be invested in your chosen investment scheme.

What are the best assets to own?

You can consider the following investment plans:

  • Fixed Deposit
  • Public Provident Fund (PPF)
  • National Savings Certificate
  • National Pension scheme
  • Tax saving Mutual Funds (ELSS)
  • Bonds

How can I make a small investment?

A Systematic Investment Plan (SIP) on mutual fund schemes enables you to start investing through easy monthly instalments, starting from an amount as small as Rs. 500. For life insurance policies, ULIP is a recommended option. A Unit Linked Investment Plan is an effective option for meeting long term investment objectives.

How can I open a PPF account?

You can open a PPF account only at certain designated banks like State Bank of India and its subsidiaries, Bank of India, Central Bank of India, Indian Overseas Bank, Punjab National Bank, IDBI, Axis Bank, ICICI Bank, HDFC Bank, and some others. All you need to do is visit a branch of one of these banks with the necessary documents for address and identity proof. For opening a PPF account online, you can type in the essential information to start an account.

How do beginners invest in stocks with little money?

Here’s how beginners can start investing in stocks with limited amount of money:

  • Get the right broker who will help you start small and yet enable achieve capital growth
  • Consider starting with exchange-traded funds.
  • Start with safer stocks.
  • Don't pay too much in fees.
  • Don't fall for hot stocks, even if the company is promising.

How do I invest my money to make money?

You can consider the following investment plans:

  • Fixed Deposit
  • Bonds
  • Public Provident Fund (PPF)
  • National Savings Certificate
  • National Pension scheme
  • Mutual Funds

How do you double your money?

Here are some investment plans that help you double your investment within a stipulated period of time:

  • National Savings Certificate
  • Non-convertible debentures
  • Tax free bonds
  • Kisan Vikas Patra (KVP)
  • Public Provident Fund (PPF)
  • Bank Fixed Deposit (FD)
  • Mutual funds
  • Stocks
  • Gold Exchange Traded Funds (ETFs)

How do you make money from investing?

Funds, when contributed towards investment plans, are exposed to the capital market with the objective of achieving growth.

How many years does it take to double your money?

The number of years it will take for you to double your money is determined by the interest rate applicable on your investment plan. For instance, as per the Rule of 72, it will take you about 7 years to double your money at the rate of 10%, 8 years at the rate of 9%, and so on.

Is gold a good investment?

There are primarily two reasons why gold is a good investment. These are:

  • It is an inflation-beating investment in which the return becomes aligned with the rate of inflation.
  • Return on gold is inversely proportionate to capital growth of equity investments. This implies that gold generates high returns when equity performs poorly.

What are examples of short term investments?

Below are some examples of short term investment plans:

  • Bank Fixed Deposits
  • Savings account
  • Short term debt mutual funds
  • Money market accounts
  • Gold and silver

What are investment options?

Investment options refer to the funds contributed towards savings and investment schemes, according to an investment strategy that takes into consideration your financial goals, risk appetite, etc. It is aimed at generating capital growth through diversification of portfolio.

What are safe and good investments?

The following are some safe investment plans:

  • Fixed Deposit
  • Bonds
  • Public Provident Fund (PPF)
  • National Savings Certificate
  • National Pension scheme
  • Mutual Funds

What are SIP investments?

Systematic Investment Plan, abbreviated as SIP, offers investors the convenience of paying their annual premium for their chosen investment plan through easy monthly instalments. These instalments start as small as Rs.500.

What are some high risk investments?

Some instances of high-risk investments are equities, equity mutual funds and hedge funds.

What are the 4 types of investments?

  • Stocks
  • Savings schemes
  • Insurance, and
  • mutual funds

What are the lowest risk investments?

Some low risk investments are:

  • Fixed Deposit
  • Public Provident Fund (PPF)
  • National Savings Certificate
  • National Pension scheme
  • Tax saving Mutual Funds (ELSS)
  • Debt mutual funds
  • Senior Citizen savings Scheme (SCSC)
  • RBI taxable bonds
  • Gold

What can I invest in with 1 lac?

Here are some effective investment plans that you can consider for enjoying healthy returns:

  • Balanced mutual fund
  • ELSS
  • Debt mutual fund
  • Equity mutual fund
  • Public Provident Fund (PPF)
  • Bank Fixed Deposit (FD)
  • Gold
  • Tax-free bonds

What do mean by investment?

Investment refers to the amount of money contributed towards investment and savings schemes, as per an investment strategy, aiming at capital growth through diversification of portfolio.

What investments give best returns?

Some investment plans that you can consider for enjoying good returns are:

  • Balanced mutual fund
  • ELSS
  • Debt mutual fund
  • Equity mutual fund
  • Public Provident Fund (PPF)
  • Bank Fixed Deposit (FD)
  • Gold
  • Tax-free bonds

What is a good rate of return on investments?

When the invested plan that you have invested in generates high capital growth, it is referred to as good rate of return on your investment.

What is monthly income scheme?

Post Offices in India offer monthly schemes against a wide range of financial products and services, as authorized by the Ministry of Finance. As a result, it is a reliable and stable source of monthly income, with low risk exposure. Accompanied by a maturity term of 5 years, the investment amount is up to Rs. 4.5 lakhs for an individual and Rs. 9 lakhs for a joint account. This scheme is aimed at capital protection.

What is a PPF account?

Introduced in the year 1968 by the National Savings Institute, under the Finance Ministry of India, it is one of the most popular savings and investment instrument, especially for saving taxes. It requires a minimum annual investment of Rs. 500 and a maximum of Rs. 1,50,000, and attracts an annual interest rate of 7.6%, which then gets compounded. Public Provident Funds offer the flexibility of paying the investment amount in lump sum or through a maximum of 12 easy instalments in a financial year. The maturity period ranges from a minimum of 15 years and up to a maximum of 5 more years, as per the investor’s financial objective. The invested amount can be transferred from one bank to another within India and serves as security and collateral at the time of loan application from the third financial year. Investors can avail tax deductions as per Section 80C of the Income Tax Act, 1961. The accumulated interest is also entirely tax-free.

What is the best investment for monthly income?

You can consider these investment plans for availing a stable source of monthly income:

  • Post office Monthly Income Scheme
  • Monthly Income Plan of mutual funds
  • Bank Fixed Deposit (FD)
  • Returns from mutual fund schemes
  • Senior Citizen Saving Scheme (SCSC)

What's the best way to invest money for short term?

Effective short term investment plans that you can consider are:

  • Bank Fixed Deposits
  • Savings account
  • Short term debt mutual funds
  • Large cap mutual fund schemes
  • Money market accounts
  • Gold and silver

Where can I invest a small amount of money?

You can start investing small through one of these investment plans:

  • Bank Fixed Deposit (FD)
  • Public Provident Fund (PPF)
  • Monthly Income Scheme
  • Senior Citizen Savings Scheme (SCSC)
  • Debt mutual funds
  • Post Office Recurring Schemes
  • Sovereign Gold Bonds (SGBs)

What is the best investment option for long term?

Some effective investment plans for meeting long term investment objectives are:

  • Unit Linked Investment Plan (ULIP)
  • Bank Fixed Deposit (FD)
  • Public Provident Fund (PPF)
  • National Savings Certificate
  • National Pension Scheme

Where can I invest money safely?

The following are some good investment plans:

  • Fixed Deposit
  • Bonds
  • Public Provident Fund (PPF)
  • National Savings Certificate
  • National Pension scheme
  • Mutual Funds

Where should I invest my money?

The following are some good investment plans:

  • Fixed Deposit
  • Bonds
  • Public Provident Fund (PPF)
  • National Savings Certificate
  • National Pension scheme
  • Mutual Funds
  • ULIPs

Which investment gives highest return?

The following investment plans are effective instruments for generating healthy returns:

  • Fixed Deposit
  • Bonds
  • Public Provident Fund (PPF)
  • National Savings Certificate
  • National Pension scheme
  • Mutual Funds
  • ULIPs

Which investment is best for short term in India?

Some short term investment plans that you can invest in for meeting short term goals are:

  • Bank Fixed Deposits
  • Savings account
  • Short term debt mutual funds
  • Money market accounts
  • Gold and silver

Which investments have the best returns?

The following are some good investment plans:

  • Fixed Deposit
  • Bonds
  • Public Provident Fund (PPF)
  • National Savings Certificate
  • National Pension Scheme
  • Mutual Funds
  • ULIPs

Which is an example of an investment?

Examples of investment are ULIPs, mutual funds, bonds, stocks, among others – anything that the investor feels would generate returns against his/her invested amount over a long or short term. Which is best investment? The following are some good investment plans:

  • ULIPs
  • Fixed Deposit
  • Bonds
  • Public Provident Fund (PPF)
  • National Savings Certificate
  • National Pension Scheme
  • Mutual Funds

Which is best mutual fund to invest in India?

Here are some leading mutual fund investment plans of 2019:

  • Aditya Birla Sun Life Small & Midcap Fund
  • HDFC Monthly Income Plan – MTP
  • ICICI Prudential Focused Bluechip Equity Fund
  • Tata Equity PE Fund
  • Kotak Corporate Bond Fund
  • SBI Nifty Index Fund
  • DSP BlackRock Balanced Fund
  • Canara Robeco Gilt PGS
  • L&T Tax Advantage Fund
  • Axis Liquid Fund

Which is better option for investment?

The following are some good investment plans:

  • Fixed Deposit
  • Bonds
  • Public Provident Fund (PPF)
  • National Savings Certificate
  • National Pension scheme
  • Mutual Funds
  • ULIPs

Which is the best and safe investment plan in India?

The following are some safe investment plans that generate good returns:

  • Fixed Deposit
  • Bonds
  • Public Provident Fund (PPF)
  • National Savings Certificate
  • National Pension scheme
  • Mutual Funds

Which plan is best for a child?

Sukanya Samriddhi Yojana savings scheme and Unit Linked insurance Plans are some of the most popular investment plans for financially securing a child’s future.

Which policy is best in LIC for short term?

LIC Moneyback Plan is considered to be one of the best short term plans from LIC.

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