The concept of savings is no rocket science. It is simple and effective when done in the right way. But the rising inflation rates and the consistent need to meet our daily financial demands are making it tougher to make savings easily. That is why a host of investment plan are being introduced that not only promise to help you make sufficient savings but also provide guaranteed returns.
What are these investment plan options that promise a great opportunity to make lump sum savings? Are they even effective? Let us learn about them as we read.
There are a plethora of investment options that you can choose from. However, it is important for you to choose among them as per your risk appetite. When you make investments as per your risk tolerance, it helps you to reach your goals without facing any financial hindrances in the long run. Here’s how to make that happen.
1. Unit Linked Insurance Plans
ULIP is an insurance plan that provides the opportunity to receive a life cover and also makes investments to secure your long-term goals. That is why its premiums are also divided into two segments accordingly. Today, it makes for a very smart investment as it is flexible, offers partial withdrawal opportunities, and also comes with additional benefits.
Here, you get the freedom to select your own life cover, scout for a preferred investment type, and gain access to good liquidity as well. Apart from this, the policy provides comprehensive goal-based planning and comes with great tax benefits to secure your financial future. If you want to maximize your returns from this policy, we recommend you start as early as possible.
Also, make sure you make regular investments in this so your returns are faster and guaranteed. You can also leverage the diverse funding options available and review your portfolio time to improve your profitability from this plan.
2. National Pension System
This one is a retirement savings plan that is government-based. The plan galvanizes the concept of systematic savings and helps you to make more mindful decisions regarding the future. Not only is this plan easy to access, but also highly reliable as it is government-run. Apart from this, opening an account for this plan is also very simple and convenient. All you need is your Permanent Retirement Account Number.
In this type of plan, you are not only allowed to grow your wealth but also make that happen at a fairly low cost. This means you do not have to worry about facing any financial crunch when investing in this plan. As such, the National Pension system provides dual benefits of low cost and the power of compounding.
The plan is also highly flexible as it offers an array of investment options to scout from. The choice of Pension Funds is also varied. This can help you to grow your financial stability and make mindful investments at every step of the way.
3. Public Provident Fund
PPF is a type of insurance plan that is 100% risk-free. It is a government-run plan that allows you the leverage of long-term investment opportunities. In case you have a low-risk appetite, but you still want to secure your financial future, PPF is a wise choice. Since they are not market-linked, they are more likely to be flexible and static.
You can begin with as low as Rs. 500 and make a maximum investment of up to Rs. 1.5 lakhs per annum. The PPF tenure exists for up to 15 years, along with tax benefits under Section 80C for up to Rs. 1.5 lakhs.
4. Debt Mutual Funds
This is also referred to as a fixed-income fund, where you can invest a large chunk of your money in fixed-income securities. In this way, you can lower the risk for investors. But this is also a smart savings strategy as it becomes difficult to withdraw money at leisure from this type of option.
It provides great tax efficiency, high liquidity, flexibility, and stability as well. That is why more people are now banking on this type of investment plan to secure their financial future.
These were some of the most well-known savings and investment plans you can opt from. As a beginner, these are very low-risk investments that will help you receive good returns too. So, do not keep thinking. Choose one now at your convenience and secure your finances.