Insurance Policy

Car Insurance Importance | Types | Top 5 Car Insurance Companies In India [2021]

Uncertainties or mishappenings are part of life. Insurance is basically a contract in which an insurer party agrees to pay an agreed amount to an insured party for the losses or damages occurred.

In this fast paced era, it is very important for a person to get insured not only for one’s life but also for their assets or investments. Yes people, as we all know, insurance is of two types – Life and General.

Car insurance policy is a type of vehicle insurance wherein a car insurance company protects the owner’s car from any type of accidental or on-road damage. In this article, one will understand the importance of buying car insurance along with the list of top 5 car insurance companies in India.

Why Car Insurance Policy Is Needed?

As earlier told, mishappenings can occur to anyone. To get protected against these, car insurance is the only solution beforehand.

  • It is an agreement where a car insurance company pays for any damage arise due to collision, accident, natural calamity etc.
  • Some company policies have the clause to provide for hospital expenses of driver in case of accident.
  • Premium amounts can be decided via Insured Declared Value. If IDV is high, premium is high and vice versa.

How To Choose Best Car Insurance Policy In India?

Before going for any of the policy, a person has to campare various policies of distinct companies in the insurance market.

  • First of all, prepare a list of your financial expectations for your vehicle’s insurance. Choose your insurance policy wisely which will cover most of your financial expectations.

For example:- If a person has more touring and travelling in its car, then probably chances of accidental damages are high. A comprehensive policy can be taken.

For example:- If a car remains at one place for much time and security issues are there, then policy covering theft clause can be taken.

  • Go for a company where the easy and quick renewal process of insurance is covered. You can also refer to the list of the top 5 car insurance companies in India. Nowadays in this digital world, online payments and renewals should be prompted. Compare the premium prices online and go for a ‘one size fits all policy.
  • Comprehensive coverage and add-on covers can be found while taking a policy for your car insurance. For example engine cover, third-party liability, roadside assistance, zero depreciation and personal accidental cover etc.
  • Review the suggestions of your family members or your relatives as they are the people who have suffered and will give you a better option for your car insurance.
  • Do not risk your vehicle by taking a policy of any inauthentic company. Choose an authentic one and do check the financial capabilities of company for settling the claims.

Types of Car Insurance Policy

1. Comprehensive Car Insurance Policy

As the name suggests, this type of car insurance policy provides wider coverage and more benefits under one umbrella cover.

  • Medical or hospital expenses.
  • Zero depreciation cover.
  • Add ons covers like for accessories or denting and painting.
  • Accidental or losses due to theft.

2. Third Party Vehicle Insurance

In this type of insurance, your insurance company agrees to pat you for the losses or damages occurring to the third person because of your vehicle’s involvement in the damages.

3. Pay As You Drive Insurance

It is also known as usage-based insurance whereby an insured party has to pay the premium amount on the basis of miles or distance driven. Similarly, the insured party or company agrees to pay for the damage on the basis of the reading of the odometer of a car.

Top 5 Car Insurance Companies In India

There are basically n number of companies selling their insurance policies to insure people against the risks to their vehicles. These include Bajaj Allianz, National insurance, oriental insurance, Bharti AXA, ICICI Lombard car insurance, Edelweiss car insurance, some public companies like Reliance, TATA AIG, SBI car insurance, etc. Following are some of the companies of which, features are highlighted along with the risk coverage capacity in their policies.

1. Bajaj Allianz Car Insurance:-

It is one of the top 5 car insurance companies in India. It provides you the cover against comprehensive as well as third-party insurance. Maximum financial expectations are met at affordable prices.

Bajaj Allianz Car Insurance Companies In India

Features

  • Online renewals
  • Zero depreciation cover available.
  • Membership discounts.
  • Add ons like denting & painting, key & lock replacement, engine & battery protector, accessories shield etc.

2. Cholamandalam Car Insurance Company In India

A car insurance company based in Ludhiana city, has a network  of over 8300+ cashless garages.

Car Insurance Companies In India

Features:-

  • Protects against third-party liability.
  • Compulsory personal accident cover of worth 15 lakhs INR in case of injury, disability or death.
  • Accumulated no claim bonuses for the period of not filing for any claim since you have taken the policy.

3. National Insurance Company In India

National insurance company is a public company which provides various types of insurance policies for one’s life as well as property. Motor insurance is also one type of insurance provided by it.

National Insurance Company In India

Risks covered:-

  • Third-Party liability or liability arising due to death or injury of the third party.
  • Any damages or risks to one’s own car due to natural calamities, terrorist attacks, accidental damages, riots or strikes, etc.
  • Also covers pay for additional minor expenses like 1500 INR for towing charges from place of damage to the workshop.

4. TATA AIG Insurance Company

TATA AIG is a general insurance company which is a collaborative association between TATA group of companies and American International Group(AIG). Various type of insurance covers are provided by this company and some of the features of motor insurance provided by this company are-

TATA AIG Car Insurance Companies In India
  • 7500+ network garages.
  • Instant policy for all products.
  • Zero depreciation cover.
  • Accidental damage and theft cover.
  • 13 type of add ons are provided and customized policy can be taken by choosing add ons as per requirement.

How Insurance Premium is Calculated?

Insurance premium is calculated on the basis of Insured Declared Value that is IDV. It is basically the value of the asset and in first year, it is the purchase price itself. Premium is calculated on the basis of this formula= IDV * Premium rate as per insurance company + add ons – discounts or benefits.


5. SBI Car Insurance

SBI car insurance under the category of general insurance is the most trusted policy which one can take. State Bank of India is one of the country’s largest and leading commercial banks in terms of its financial position.

SBI Car Insurance Company In India

Features:-

  1. Compulsory third-party liability with personal accidental cover.
  2. Multiple risks coverage but with additional costs.
  3. Key and lock replacement.
  4. Bi-fuel kit.
  5. Incurred claim ratio- 102.07%
  6. 1500+ network garages.

Final Words

Car is an important asset for anyone as it is comfortable and easier to travel in. It has right to get insured along with the owner’s or third party insurance. Risks are uncertain and a car insurance policy should be chosen wisely as per one’s financial expectations and company’s authenticity & capability.

Insurance Policy

Complete Guide To Life Insurance In India-[Need & Importance]

What Is Life Insurance Policy?

Life insurance in India can provide financial assistance to your loved ones on the unfortunate happening of the policyholder. It provides your family with the financial support of means of living or paying off certain debts and ensures their smooth living.

In other words, Life Insurance in India is a legal contract between the insurance company and policyholder that guarantees to pay lump sum amount and other beneficiaries to the policyholder family, when the policyholder passes away. It is given in exchange for premiums paid by the policyholder during their lifetime.

Life Insurance In India

The policyholder can decide how much the policy will payout? Usually, it pays out lumpsum amount but one can also change it to pay out in regular amounts over time.

This complete guide to life insurance will let an individual understand the importance of life insurance, what factors to consider while choosing a life insurance policy, how one can make the best use of a life insurance policy, and so on. Also, find out the common mistakes that people often make while applying for life insurance and get the maximum payout benefits with complete knowledge about life insurance.

What Are The Types Of Life Insurance?

➡️ Term Life Insurance

Term life insurance is termed as simplest life insurance policy in India. This policy lasts for a number of years, having a fixed date of expiry. But if the policyholder passes away before the end of term insurance, then a fixed amount of money that is known as Death Benefit is paid to a designated beneficiary. The death benefit can be received by beneficiaries in a one-time lump sum amount, monthly or annually according to the choice of the policyholder.

Term life insurance in India is quite affordable than other types of Life Insurance, having low premium costs.

➡️ Whole Life Insurance

Whole Life Insurance in India does not get expired and is known as permanent life insurance. It has a death benefit and cash value that makes it a little complex than other life insurance policies.

Cash value is like an investment that ensures a predetermined a fixed rate of interest on the amount. A certain portion of your premium is deposited into the cash value, which grows over time. The cash value can be withdrawn when it has enough accumulated amount or can be used for a loan.

Whole Life Insurance offers coverage as long as you are able to pay premiums.

➡️ Universal Life Insurance

Universal Life Insurance is just like whole life insurance in which there is a cash value with a twist that you can change the premium and death benefit amount without getting a new policy.

You have to stick to a minimum premium amount to keep the policy running. One is also allowed to use the cash value to pay that premium. Cash value can be used to skip premium payments or letting the accrued interest do the work until the cash value is depleted.

The interest rate that is provided on cash value is sensitive to the current market rates. This flexible nature of Universal life insurance policy looks attractive so a specific set of people, otherwise, it bit confusing and not in high demand to opt.

➡️ Variable Life Insurance

Variable life insurance can be used as a great investment option as compared to other life insurance policies. In it, the cash value goes for investment in mutual funds like sub-accounts where a policyholder can expect a decent amount of growth or profit but also takes a risk of money loss depending upon the situation of the market.

The investment done in this Life insurance policy has a higher potential of tax-deferred growth. Variable life insurance in India is not a good option if people who don’t have knowledge about the stock market so it becomes difficult for them to manage so many variables simultaneously effectively. This makes it a limited investment option and limited coverage option.

➡️ Final Expense Insurance

Final expense insurance is right for those who are looking for coverage for medical care, funeral, and burial costs. In this type of life insurance, the coverage cost of anything that is associated with death is included.

It is suitable for old age people who don’t have any other life insurance coverage, don’t have savings for their funeral, or might be their term life insurance policy have been expired. Adult children can also look for this option for their old age parents and don’t want the burden of such types of expenses.

Final Expense Insurance has a higher premium amount and the relatively low coverage amount.

➡️ Group Life Insurance

Group life insurance is also called group term life insurance. It is an employee benefits life insurance that is provided by some employers. This kind of life insurance in India is offered by employers to employees at no extra cost and is of great benefit to employees.

Group life insurance does not provide protection to your family members. Choosing a life insurance policy from the options given above is more beneficial than this. However, it provides enough coverage to employees in many cases.

Why There Is Need Of Life Insurance?

Going through significant changes in our lives it good to be prepared for future changes in our lives. One has to accept that the worst can happen in the future so you can ensure you loved ones before any unfortunate event happens. For the following major reasons, you might feel the need of life insurance-

➡️ Looking After Your Family

If your family is dependent on you for financial assistance then life insurance is much-needed factor for you. Life insurance lows down the financial burden upon your family by taking care of your child’s education expenses and financial security to family members.

➡️ Securing Risk Of Unemployment

As of you may have encountered the uncertainty of unemployment and might want to play safe. Securing the dreams and long-term goals of your family life insurance sound a must to you. Keep spare income on a side that ensures the future survival of your family.

➡️ Helps To Achieve Long Term Goals

Achieving long term family goals is possible with life insurance today.  Since it secures your premium amount or investment for the long term that can be withdrawn on the maturity of the policy or on the happening of a misfortunate event. If you want your life insurance plan to pay out maximum then secure coverage at low rates when you are young and healthy. Maintain this coverage through changes in all the phases of life be it changes in job or lose employer coverage.

➡️ Safeguard Your Business in Future

Life insurance isn’t only meant for you or your family but also for your business. Your business partner can purchase your business portion without any difficulty by entering in a buy-sell agreement. The payout of this kind of life insurance will go directly to the nominees of the deceased partner, without giving them stake in the company.

➡️ For Retirement Planning

Who doesn’t want to secure their retirement by taking safer steps today?

Start keeping some amount aside from your monthly income today and plan for your retirement with life insurance policy. Putting your money in life insurance premiums is like a pension plan with extra benefits. How life insurance can help in retirement planning?

  • Provide coverage for all expenses associated with death like funeral or burial expenses.
  • Bare for all medical expenses or terminal diagnosis expenses
  • Withdrawing from your life insurance in emergency is possible with life insurance

When My Life Insurance Policy Will Pay Out?

Life Insurance policies offers payout in two ways. Firstly, if the policyholder passes away before the completion of the tenure of the policy then the death benefits are paid to the specified beneficiaries. On the other hand, if the policyholder survived till the competition of the plan then the insurance company pays out maturity benefit and bonuses to the insured. One must be aware with the insurance policy payout when the right time comes.

Various Life Insurance Policy Payout Options Available

Insurance companies offers commonly two kinds of payouts-

➡️ Lump Sum Payouts

In this kind of payout is made in a single payment to the decided beneficiary in the form of death or maturity benefits. This lump sum amount may also include loyalty additions and bonuses. It enables the nominee to invest this lump sum amount in other instruments or low down their financial burdens like loans, repayment of debts etc.

➡️ Periodic Payouts

Insurers may offer you a second alternative way of periodic life insurance payouts. Only one portion of benefits is paid out a lump sum and the rest of the amount is converted into annuities or installments which is paid to the nominee in installments according to the predetermined period. Periodic payout allows a recipient to enjoy the steady income that is helpful in dealing with regular expenses like rent, utility bills, EMI’s, etc.

How to File a Life Insurance Claim?

Filing a claim is the first step to obtain Life Insurance payout. There are three ways to do so: –

  • File a claim through the policyholder’s web portal online
  • Contact the insurance company agent directly to file a claim
  • Visit the insurance company branch office and file a claim by submitting a written request

Extra Benefits Along With Life Insurance Policy In India

➡️ Tax Benefits

Life insurance policy comes with extra tax benefits under section 80 C, the premium paid for life insurance policy can attain maximum tax deduction up to Rs 1.5 Lakh. Individuals can reduce their tax liabilities by investing in specific instruments. Under section 10 D the pay we received from the life insurance policy is absolutely tax-free, the condition is premium does not exceed 10% of your sum assured, annually.

➡️ Critical Illness Cover

Life insurance policy can provide you financial support if you are encountered with a serious illness during the term of the policy. Some insurance policies offer additional financial coverage for Accidental, death, or critical illness depending upon the type of the policy and insurance company.

➡️ Loan Availability

Life insurance policy is advantageous in case you need a loan facility. Almost, all top insurance companies in India offer the facility of loan available to the policyholders. One can borrow a certain percentage of cash value or sum assured based on the policy provisions. But make sure to read all the policy terms and conditions regarding loan facilities before buying the life insurance policy.

➡️ Remote GP Services

Remote GP services means that you can receive unlimited advice, reassurance, diagnosis, medication or a referral when you need it, from wherever you are in the world. It is available 24 hours a day, 7 days a week, 365 days a year.

What is the Right Time to Take Life Insurance in India?

The best time to buy a life insurance plan is when you have dependents on your income. One should consider his/her age as a major factor while buying a life insurance policy. It is suggested to choose a plan when you are young and healthy. So, the right age to start paying life insurance premiums is in the 20s to 30s. in this age, there are least chances of your unexpected demise and the lowest possible for the insurance company to pay the death benefit. Hence, the premiums are low at this age, otherwise, it starts getting expensive with age. If you don’t have dependents then it is also very cost-effective to have an early start.

How to Choose the Best Life Insurance Policy In India?

Choose right & best insurance policy on the basis of following factors-

  • Choose Life Insurance Company that is Financially Strong
  • Assistance Provided by Insurer
  • Amount of the premium whether its affordable or not
  • The reputation of the company
  • Sum assured must be optimal enough to cover your family’s financial needs

Also Read: Top Life Insurance Companies In India

Conclusion

The future is uncertain, so it is always good to be prepared for future uncertainties. The life insurance policy offers that cover of protection to your loved ones when the policyholder passes away. This complete guide must have made you aware of the importance of life insurance and how to select a perfect life insurance plan for your family.

Get a detailed life insurance plan for your family with the expert guidance of our experts. Contact Us Today!!

Investment

How to Invest in Mutual Funds Through an E-Wealth Account?

NJ E-Wealth Account is a comprehensive online platform that provides access to your whole wealth portfolio across Mutual Funds, Direct Equity, ETFs, IPOs, and Bonds along with their current valuation basically all under one roof. NJ E-wealth account is a great platform for investors as they can buy, sell, or switch their investments simply through their computer or smartphone any time and from anywhere in the world. And do you know why most people prefer to use NJ e wealth, the reason is the transaction process is speedy, smooth, and paperless?

trading mutual funds

Here, we are going to discuss how to invest in mutual funds using the NJ E-Wealth account. This is going to be a detailed tutorial that just needs your 2 minutes to learn the basics of trading with NJ E-wealth. Let’s get started.

Now never miss an opportunity to build your wealth because you were too far

Key Features of NJ E-Wealth

➝ Only for resident individual clients.

⇨ The investment will be in Physical folio.

➝ Net banking & Debit Card options available for purchase.

⇨ Available for 365 days & 24X7

➝ Withdrawal in just 30 minutes.

⇨ Current scheme available – Reliance money manager fund – Growth option

➝ Redemption proceeds will be directly credited in clients’ banks A/C by AMC or RTA.

⇨ Any modification in the folio details shall be done through AMC or RTA.

➝ The facility is available only for NJ E wealth AC clients.

Benefits: Invest in Mutual Funds through E – Wealth Account

➝ No signature required

⇨ No physical application

➝ View our portfolio online

⇨ Access through app

➝ Go paperless go digital

Why Invest in Mutual Funds Through NJ E-Wealth Account?

Here are some major reasons why you should invest in mutual funds through e wealth account:

Paperless Account Opening In Just 1 Hour

NJ India online offers seamless Adhaar based account opening where you don’t even need to stand in the queue and wait for a long period of time. In addition, unlike offline Demat account opening, you don’t need to sign on multiple documents. Therefore it’s very easy to open a trading account through NJ India Online.

Convenient Transaction Options

All the MF transactions can be done through SMS or Email at any time and from anywhere 24/7. For your convenience, you can also use their Mobile App for transactions. To get notified for every transaction, get Instant alerts & confirmation through SMS or Email.

Convenient and Secured Payment Options

NJ India offers multifarious convenient and secured payment options for the investors that include:

➝ Net Banking

⇨ RTGS / NEFT – All Banks

➝ Auto Debit / ACH – All Banks

⇨ Cheques – All Banks

➝ Debit Card – VISA only

Comprehensive Reports

In order to provide the proper valuation and transaction reports, they offer you desktop & Mobile App access for the ease of people to analyze all the reports. Thus, you can make reports for tax calculation purpose

Easy Process Of Transmission

It’s a hassle-free transmission process you can simply transfer your wealth to your nominee.

Innovative Transactions

In NJ Online, here is a Unique Inter AMC Switch or STP available only in E-Wealth A/C where you can easily switch from one mutual fund scheme to another without any hassle.

Centralised Customer Care

If you have any query related to your investment plan or anything you want to ask you can simply call on our toll free number 1800 102 0155.

Step by Step Guide: How To Invest in Mutual Funds?

Once you are done with account opening with NJ e-wealth, here are the further steps of how to use the NJ E-wealth account for trading:

How To Login to Your NJ E-Wealth Account?

Step – 1

First of all, the website will ask for your credentials like login ID and password,

how to invest in mutual funds

Step – 2

After entering the correct details, you will be redirected to the E-wealth homepage.

mutual funds sip

How To Register for SIP?

Step-1

Click on the mutual fund in the top navigation bar, then under the transaction list, click on SIP registration.

best mutual funds to invest in sip

Step-2

A new form will appear where you need to enter the required details as shown below and submit the form.

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Step-3

Once you submit the SIP registration form, their system will ask for your confirmation. Check out all the details carefully that you have filled in the SIP registration form and click on the confirm button.

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Step-4

After you click on the confirm button, your SIP registrations have been successfully submitted.

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How To Purchase Through E- Wealth Account?

Step-1

In the mutual fund, under the transactions menu list, click on the first option i.e Purchase.

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Step-2

Once you click the purchase button, an application form for purchase will appear where you will need to enter the desired investment amount and other required details and submit the information.

trading mutual funds

Step-3

Once you submit the information, their system will ask for confirmation for your purchase. Here you will need to check all the details as shown below and finally confirm your purchase.

mutual funds online

Step-4

Once you confirm the purchase you have made, your transaction has been successfully submitted as details are shown below:

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Mutual Fund Redemption Through E- Wealth Account

Step-1

In the mutual fund, under the transactions menu list, the redemption option will be there as shown below:

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Step-2

Once you click on the redemption button, an application form for redemption will appear where you will need to enter some details that are required and submit the form as shown in the image below:

How to Invest Money

SIP Cancellation or Revocation

Step-1

In the mutual fund, under the utility menu list, the SIP Stop/Revocation utility option is there as highlighted in the image below:

Step-2

Once you click on the SIP stop button, a new page for SIP cancellation where you will find three options: Requested, Underprocess, and not requested. As per your funds status, choose the option you want to select and click on submit. 

Best Website to invest

Step-3

When you click on all, it will display all the SIP’s you have registered with the NJ E-Wealth account:

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Investment Schemes

Complete Guide To ELSS Mutual Funds : How to Start?

Most of the investors always seek the opportunity to invest in a great investment plan from which they can generate more wealth, get a huge amount of regular returns as well as they can save taxes. While there are multifarious investment plans available in the market and the best thing about investment plans is all of them offer great returns that are taxed according to the Income Tax rules. But when it comes to the best investment plan, ELSS funds are always on the front seat. Equity Linked Savings Scheme or ELSS Funds are tax-saving equity mutual funds. Here we are going to explore ELSS Tax Saving Mutual Funds and dig into all the aspects that you need to know.

What is the ELSS Fund?

ELSS funds is an equity fund that invests a major portion of equity or equity-related elements. ELSS funds are known for the best tax saving schemes as they offer tax exemption of up to Rs. 150,000 from your annual taxable income under Section 80C of the Income Tax Act.

In addition, the ELSS fund is an equity-oriented scheme which comes with a mandatory lock-in period of three years. The great thing about ELSS mutual funds is that there is no tax deduction after the lock-in period of three years. Over the last few years, most of the taxpayers have been switching to ELSS investment schemes to avail of tax benefits. Furthermore, the return that you get at the end of the three-year tenure of the lockin period of ELSS funds will be considered as Long Term Capital Gain (LTCG) and will be taxed at 10% (if the income is above Rs. 1 lakh).

Some Common ELSS Terms

Expense Ratio

The expense ratio is the amount of money that the fund management company charges an investor for managing the fund.  When you will select an ELSS fund, you must check the expense ratio of the fund.

Past Performance

Before making the final decision for the best ELSS funds, you must know the fund’s historical performance as this will give you an idea of the fund’s future performance. Consistently performed funds are good options.

Age of the scheme

As we all know Mutual Funds depend upon the market conditions, so it’s better to choose older schemes. ELSS scheme that has a past performance record of around 5 to 10 years would have gone through various market phases that are generally considered better options than the other latest schemes.

Size of the corpus

Yes, bigger is better! First of all, you must know the corpus of the ELSS scheme you’re planning to invest in and compare the other schemes available in the market.

Source: Video from Mutual Fund Sahi Hai

Features Of ELSS Mutual Funds

  • Tax exemption – You will get free from Tax if you have invested some portion of your income in ELSS funds under Section 80C of the Income Tax Act.
  • No Maximum investment – There is a lock-in period of three years that means no maximum tenure of ELSS funds
  • Equity Investment – A minimum of 80% of the total investible corpus is invested in equity and equity-related instruments.
  • Diversification – The fund invests in equity in a diversified manner – across different market capitalizations, themes, and sectors.
  • Tax rules – your income will be treated as LTCG and taxed as per the prevalent tax rules.

Who Should Invest in ELSS?

  • ELSS offers an amazing opportunity for investors who don’t want to pay tax liability with high capital growth. If you are looking for equity investment avenues that will deliver good returns in the long run, you can go for it.
  • Investors who have a high-risk appetite can invest in ELSS and a long term wealth creation goal.
  • Investors who have a long-term investment goal i.e. more than three years can invest in ELSS. Because the fund has a minimum lock-in period of 3 years and this fixed lock-in period ensures that the investors remain invested.
  • The investors who have already invested ₹1.5 lakh in various tax saving investment schemes under Section 80(C), he must choose other equity funds that don’t have any lock-in period.

Why Should You Invest in ELSS Tax Saving Mutual Funds?

ELSS Tax Saving Mutual Funds has a wide range of benefits including:

  • SIPs– The best thing about tax saving ELSS funds is you can invest a lump sum amount. If we talk about investors, they always prefer the SIP method as it allows them to invest in small segments and avail tax benefits along with a great opportunity to generate wealth.
  • Diversification– Most ELSS funds invest in a diverse group of companies ranging from small to large and across multifarious sectors. This great feature allows investors to add the element of diversification to your investment portfolio.
  • Low minimum amount– There are a plethora of ELSS schemes that allow investors to invest with as low as Rs.500. This ensures that you can start investing in ELSS without having huge funds.
  • Shortest Lock-in period –  Equity Linked Savings Scheme (ELSS) has the shortest lock-in period of three years. you can exit ELSS funds by selling it after 3 years.

Factors To Consider Before Investing in ELSS Funds

► SIP

In order to get the benefit of tax exemption, many investors have been switched to ELSS funds. Hence, they commit the whole ELSS investment to the market. Just because they need to save taxes and lump sum amount of investment is the only choice. But it can be risky especially if you invest at a time when the market is high. Basically, the ELSS investments are long-term financial goals that start with a systematic investment plan (SIP) which can help you average your buying cost per unit.

↠ Investment + Tax Planning

ELSS funds are the only type of mutual fund which invests in the equity market as well as offers tax benefits. Most of the investors invest in ELSS funds just for saving their income from paying taxes. If you have the same purpose for investing in ELSS mutual funds, then there are several options available under Section 80C of the Income Tax Act. This investment plan will naturally include tax planning and also it can be used to achieve your long-term goals.

► Recommended Investment Horizon

When it comes to the majority of investors, they prefer ELSS funds to PPF or NSC just because of the short lock-in period of 3 years. Then Tax saving investment plan is a good strategy since equity investments are known to take around 5-7 years to stabilize.

How To Invest in ELSS Funds?

You can easily invest in ELSS online through online platforms (such as investmarket.in) offering the fund.

Step-1 Visit http://p.njw.bz/83041

Step-2 Enter your Full name, Email, and Phone no

Step-3 After submitting the information, A new form will appear:

Step-4 Now, enter other details:

Step-5 After filling in all the required details, your application will take a few seconds to process the information

Step-6  Once your information processed, select the method to get your KYC process completed.

Step-7 Now you need to enter your Adhaar information here:

List Of Top ELSS Funds 2020-2021

Here are top ELSS funds in which you can invest to save your tax as well as generate your wealth:

Fund Name Returns (%)
1 year 3 year 5 year 7 year 10 year
Axis Long Term Equity -0.44 6.29 8.82 17.25 14.02
Mirae Asset Tax Saver 10.12 7.52
Invesco India Tax Plan 5.82 5.83 8.76 15.52 11.21
Aditya Birla Sun Life Tax Relief 96 4.31 2.28 8.01 15.31 9.78
DSP Tax Saver -0.62 2.70 8.93 14.68 10.29
Kotak Tax Saver 5.24 2.64 8.11 14.51 8.49
ICICI Prudential Long Term Equity 1.11 3.38 6.80 13.37 9.61
Motilal Oswal Long Term Equity -5.66 0.40 8.21
Tata India Tax Savings 0.76 2.68 8.63 14.53 10.92
Nippon India Tax Saver -10.37 -9.16 0.65 11.32 7.25

Different Ways To Invest in ELSS Funds

This can be done either via a

► Mutual Fund distributor

↠ An online distributor

► Fund company

What is the Best Thing About ELSS Funds?

► Instant Investment

You can start investing in the best ELSS funds for as low as Rs. 5,000 (lump sum) and Rs. 500 for a monthly SIP (Systematic Investment Plan). Therefore, you do not have to wait to accumulate a large sum in order to start investing.

↠ Zero Commission

You can save tax with zero percent commission by investing in the ELSS mutual funds scheme. So you don’t need to worry about the extra charges while investing in ELSS mutual funds.

► Completely Paperless

Unlike the traditional offline method of investing in ELSS funds, now it’s very easy to invest in tax saving funds, you just need to create an account and it will be done by following very easy steps.

Investment

Read All About Mutual Funds Investment In India-Start Investing!!

Mutual funds investment is one of the popular schemes these days. These funds are commenced when Assets Management companies collect investments from interested investors or institutional investors with the objective of investment. An expert fund manager with his expert fund, management skills invests these pooled investments on the purchase of stocks and bonds.

Mutual Fund is one the best investment scheme when individuals don’t want to lock in the investment for a longer duration of time or expecting early withdrawals with some profit. These kinds of investments can be diversified into various funds. Each investor is provided with a portfolio reflecting the unit-based amount they invested and experience profit & losses accordingly. The performance of Mutual funds is dependent on the underlying assets.

Types of Mutual Funds

Broadly, we can broadly categorize mutual funds into three categories depending upon asset allocation and equity exposure. According to which one can imagine the risk and assume the returns on the investment. In-depth detail of each type and further categories are given below: –

Equity Funds

Equity funds are invested in equity shares of all companies across the market capitalizations. These funds are expected to offer the highest returns among all the mutual fund types and classes. A mutual fund is categorized under equity fund if it invests at least 65% of its portfolio in equity instruments. The returns are dependent upon two major factors i.e. geopolitical and economic factors. Equity funds can further be categorized into: –

  • Small-Cap Equity Funds
  • Mid-cap Equity Funds
  • Large-cap Funds
  • Multi-cap Equity Funds
  • Index Funds
  • ELSS Equity Funds

Debt Mutual Funds

Debt mutual funds are invested in debt, treasury bills, government bonds, commercial papers, certificates of deposit, and other highly rated securities. These types of mutual funds generate fixed income that a buyer can earn on the maturity of the fund. These instruments have a pre-decided date of maturity on which the investor can withdraw his investment with a fixed rate of return. Such kind of investment is ideal for those who don’t want to bear any risk on their investment as debt mutual funds are not influenced by market fluctuations. The returns provided by Debt mutual funds are fixed or predictable. Furthermore, these funds can be divided into the following types: –

  • Dynamic Bond Funds
  • Income Funds
  • Short-Term Debt Funds
  • Liquid Funds
  • Gilt Funds
  • Credit Opportunities Funds
  • Fixed Maturity Funds

Hybrid or Balanced Mutual Funds

Hybrid mutual funds are also known as balanced mutual funds that best suggests the idea of investing in both equity and debt instruments sometimes Gold and real estate are also included in it. The main aim of investing in hybrid mutual funds is to diversify the portfolio risk ratio. The allocation of each asset is decided by the fund manager depending upon the market condition keeping in mind the objective of profit and reduced risk levels.

Hybrid funds are an excellent way of diversifying the portfolio and balancing the investment in both equity and debt mutual funds. These investment options that lie within the assets class exhibit a higher level of correlation in return, whereas across the asses class investment shows little correlation in return.

The hybrid of balanced mutual funds are further classified into-

  • Equity-Oriented Hybrid Funds
  • Debt-Oriented Hybrid Funds
  • Monthly Income Plans
  • Arbitrage Funds

Who should invest in Mutual Funds?

Anyone can invest in Mutual funds who have a particular financial goal with a good amount of returns and minimum risks. Investing in Mutual funds is the best option for boosting up your savings and achieving your financial goals quickly. Investors need to calculate risk profile, the amount that they want to invest, goals that investors want to achieve via investment, time period of investing. For example, your financial goal is to buy a car in five years, then investing in gilt funds. If your plan is to buy a house in the period fifteen to twenty years, then you may choose equity funds.

Why should you invest in Mutual Funds?

1. Investment Is managed by experts

It’s the fund manager’s decision who decides to manage the investment pooled by the Asses Management Companies (AMC’s). These fund managers are professionals in their field who have expert knowledge of the market and managing portfolios. Fund managers have their own professional team of analyst that tells him/her about the market situations, top-performing mutual funds on the basis of which fund manager decide about the investment. This market research is the most vital part of mutual fund investment that provides excellent returns to investors in return.

2. Premature Withdrawal is also possible

Mutual funds provide the major benefits of no lock-in period which means Investment once made can be withdrawn in case of need or emergency. One can withdraw the money before the maturity period but with some penalty (applicable to some cases). Otherwise, most of the mutual funds are open-ended that comes with exit-leads on redemption.

3. Low Expense ratio For Expert Management

Investing in mutual funds is the best scheme for small investors who want to start an investment with a very low amount. Mutual fund house and AMC’s charges a very small amount known as expense ratio for the management of investors fund. Generally, it lies between 0.5% to 1.5% of the amount invested by the investor.

4. Start investing from Low amount

The most noticeable advantage of mutual fund investment is that investment can be started from a very low amount. Small investors find mutual fund investment the best option as it can be started from INR 500. Systematic Investment Plan SIP enables you to decide the amount you want to invest, the frequency of investment, investment in parts of lump sum investment, and so on. It can be called profit in your comfort zone. The benefit from SIP depends upon the term for investment and market situations.

5. Diversification of Funds

Diversification is another reason why one should invest in Mutual Funds. Mutual funds can be invested in various asset classes and shares of different-different companies. So, if one asset fails to perform great as per the expectations other assets profit may compensate for that. It reduces the concentration of risk to a greater extent.

6. High Degree of Liquidity

As stated below that there is no lock-in period in mutual fund investment, ultimately it provides a high degree of liquidity. Due to which one can easily withdraw their investment in times of financial crisis or some unfavorable market conditions. The process for amount withdrawal is extremely easy, unlike other investment options. The money will be credited to your account by Asset Management Company or fund house with 3-7 business days on the request of redemption.

Top Performing Mutual Funds

Check out the list of best mutual funds to invest in India on the basis of types, performance, and investment period.

Mid-Cap Equity Funds

Mid Cap Fund Crisil Rank AUM (Cr) 1 M 6 M 1 Y 3 Y 5 Y
Taurus Discovery (Midcap) – D (G) 4 0.70 -0.40% 21.00% 11.80% 3.50% 9.70%
DSP Mid Cap – Direct (G) 4 1,005.24 0.40% 24.50% 11.60% 4.90% 11.90%
Taurus Discovery (Midcap) (G) 4 43.54 -0.50% 20.80% 11.40% 3.00% 9.20%
Invesco India Midcap – D (G) 5 148.10 -1.30% 23.30% 11.30% 6.00% 10.80%
DSP Mid Cap – Regular (G) 4 5,365.50 0.30% 23.90% 10.60% 4.00% 10.90%

 

Debt Mutual Funds

Medium Duration Fund Crisil Rank AUM (Cr) 1 M 6 M 1 Y 3 Y 5 Y
SBI Magnum Medium Duration Fund – D (G) 4 730.00 2.10% 8.20% 13.40% 10.00% 10.80%
SBI Magnum Medium Duration Fund (G) 4 2,531.96 2.10% 8.00% 12.90% 9.40% 9.90%
Tata Medium Term – Direct (G) 4 24.68 1.70% 7.60% 12.70% 2.40% 5.10%
Axis Strategic Bond Fund – D (G) 4 194.54 1.60% 7.20% 11.30% 8.40% 9.10%
ICICI Pru Medium Term Bond (G) 4 4,322.43 1.50% 8.10% 11.10% 7.70% 8.10%

 

Hybrid Mutual Funds

Aggressive Hybrid Fund » Crisil Rank AUM (Cr) 1 M 6 M 1 Y 3 Y 5 Y
CR Equity Hybrid Fund – DP – (G) 5 78.91 2.80% 16.10% 9.20% 8.60% 10.60%
CR Equity Hybrid Fund – RP – (G) 5 2,773.48 2.70% 15.40% 7.90% 7.30% 9.30%
IDBI Hybrid Equity Fund – DP (G) 4 4.32 2.20% 15.80% 5.20% 1.90% 0.00%
IDBI Hybrid Equity Fund – RP (G) 4 187.16 2.20% 15.30% 4.30% 0.40% 0.00%
DSP Equity & Bond Fund – Regular (G) 4 4,943.41 3.60% 15.80% 2.60% 4.80% 8.60%

How to Invest in Mutual Funds?

Investing in mutual funds is an extremely simple process. Invest Market makes it even easier as it has in-house experts having expert knowledge about market situations and top-performing mutual funds. Our expert fund managers have invested a lot of their time in the research of top fund house and offers you best guidance for getting maximum returns. Follow the given steps to start investing in mutual funds now-

  1. Visit- http://investmarket.in/
  2. There are three ways to contact our expert fund managers for complete guidance-

Contact No- + 91 98037 49711

Contact Form-

Invest Market Mutual Fund

Email- info@investmarket.in

3. Our team will get back to you shortly for further guidance or you can choose another method given below.

Online Method to Invest in Mutual Funds

Step: 1 Visit http://p.njw.bz/83041All about mutual funds in India

Step:2 Enter your full name, email, and phone no

Step:3

objectives of mutual fund

Step: 4

Step: 5

best mutual funds to invest

Step:6

mutual funds sahi hai

Step:7

how to invest in mutual funds

Step: 8- Enter your Aadhar number and you are all set!!

What type of Mutual Funds are best suitable for you?

What is the best time to invest in Mutual Funds? Actually, there is no such term in mutual fund investment. The fund managers try to invest your money in the right securities and assets that are going to benefit the investors, instead of fluctuating market conditions.  If you are investing via a SIP, then you are going to benefit from both down and high market cycles. When the markets are down, you end up buying more fund units as the stock prices would have fallen to their fresh lows, and when the markets shoot up, you buy lesser units. This is called the rupee cost averaging. So now you need not wait for any particular time to invest in Mutual funds.

Expert Advice- Best Mutual Fund To Invest

Mid-cap mutual funds are ideal best suited and preferred to those investors that can bear high-risk. If things go well then the investor can expect high returns otherwise can go adverse as well in the opposite situations. These are best suited for people who are diversifying investment in their portfolio. The benefits of mid-cap mutual funds are high returns after all you bear the maximum risk.

FAQ’s- Frequently Asked Questions

Are mutual funds invested in stocks only?

No, mutual is not invested in stocks only except the equity funds that invest in a stock. Some debt and liquid funds also invest in stocks but there’s hardly any possibility. Some of the debt funds never ever invest in stocks.

What is the term exit load in mutual fund investment means?

Exit load is the fees charged by the AMC or fund house when you are not able to keep your investment for a particular period of time. However, not every mutual fund investment charge exit load, most of the mutual funds are open-ended. So, it is suggested to read the fund carefully before investing.

What does the expense ratio mean?

It is the management fees charged by the fund houses and Asset Management companies. The expense ratio is always less than 2.5% of the amount invested by investors.

Is it safe to invest in mutual funds?

Yes, it is extremely safe to invest in mutual funds as it comes under the Securities and Exchange Board of India(SEBI), Association of Mutual Funds in India (AMFI), and Reserve Bank Of India(RBI).

How can I redeem the Mutual Funds Unit?

Mutual funds units can be redeemed anytime. On the redemption of mutual funds, the amount will be credited to your bank account within 3-7 business days.

Investment Schemes

ICICI Pru Assured Savings Insurance Plan: Benefits, Features and Details

ICICI Pru Assured Savings Insurance Plan is a traditional non-participating non linked endowment life insurance plan. It helps to secure your dreams of the future by filling up the emergencies and risks of the future. One can save their money and expect for fulfilling long-term goals like education of your children, marriage of your children, comfortable and happy life after retirement, and so on. Under this best savings plan, you get two major benefits i.e. wealth creation plus tax benefits. You can also make premium payments according to your comfort. Also, ICICI Pru Assured Savings Insurance Plan provides your life insurance cover of your family in case of your unfortunate demise. Talking about tax benefits, you can avail various benefits on premium paid and received according to the present tax laws.

ICICI Prudential Assured Savings Insurance Plan Eligibility Criteria

Minimum Entry Age 6-8 Years
Maximum Entry Age 60 Years
Maturity Age Lies Between 18 Years – 72 Years

Policy Terms for the ICICI Prudential Assured Savings Insurance Plan:

Premium Payment Term Policy Term
7 years 10 years 12 years
10 years 12 years
Premium In Rs 12000-18000

ICICI Pru Assured Savings Insurance Plan Premium Payments:

Minimum Premium 7 year premium payment term: Policy term of 10 years – Rs.18,000 Policy term of 12 years – Rs.18,000 10 year premium payment term: Policy term of 12 years – Rs.18,000
Premium payment The premiums can be paid for 7 years or 10 years.

The policy lasts for 10 or 12 years ( if 7 pay plan) but 12 years for 10 payment plan.

The minimum premium payable is Rs.18,000 in the of seven payments and Rs. 12,000 for 10 pay option.

ICICI Pru Guaranteed Savings Insurance Plan of 10 years, you can start the plan from the age of 8 but should not exceed 60 years. For the 10 pay option, you can start the plan from the age of 6 but should not exceed 60 years.

For a policy term of 12 years, you can start the plan from the age of 6 but should not exceed 60 years.

The minimum policy maturity age is 18 years and the maximum cannot exceed 72 years in both cases.

ICICI Prudential Assured Savings Insurance Plan Calculator

Illustration

Features Of ICICI PRU Assured Savings Insurance Plan

Plan Type Traditional non-participating non-linked endowment life insurance plan.
Premium Payment options Yearly, Half – Yearly, Quarterly, Monthly
Free look period Free Look period is 15 days from the date you received the policy. If the policy has been purchased through distance marketing, then the free look period is 30 days.
Loans Up to 80% of the surrender value can be availed as loan amount.
Revival A policy that has been discontinued can be revived within 2 years from the due date of the first unpaid premium.
Surrender benefit If your policy term is 10 years, you will acquire surrender value after 3 full year’s payment. If your premium payment term is 7 years, you will acquire surrender value after 2 full year’s payment. On surrender, you will get Guaranteed Surrender Value plus the value of accrued Guaranteed Additions and Special Surrender Value.
Tax Benefits As per  Section 80C and 10(10D) of the Income Tax Act
Riders No Riders available under this plan
Guaranteed Additions 9% Or 10% Every Year
Guaranteed Maturity Benefit The lump-sum amount at end of the policy term

 

Benefits Of ICICI PRU Assured Savings Insurance Plan

Guaranteed Additions

These are paid on the maturity of the policy. It gets added to your policy at the end of every policy year when all the premiums have been paid. It is also accepted for death benefits as well. The Guaranteed addition rates are:

For 10 years term- 9%

For 12 years term- 10%

Guaranteed Benefits On The Maturity Of The Policy

Guaranteed Maturity benefits depend upon the premium, payment term, policy term, gender and age of the person.

Maturity Benefits

These Maturity benefits are provided to the policyholder at the end of the policy term when all the premiums are paid as well. Maturity Benefit is

Accrued guaranteed additions + Guaranteed maturity benefits

Death Benefits

If the unfortunate demise of the policyholder happens then death benefits are offered to the dependent of the policyholder. The death benefit is either the sum assured plus the accrued guaranteed additions, minimum death benefit, or guaranteed maturity benefits plus accrued guaranteed additions, whichever is higher. Also, note here that all other policy benefits will be ceased on payment of death benefit.

Surrender Benefits

Policy Term 10 Years- Acquire Surrender value after 3-year full payment

Premium Payment Term 7 Years- Acquire Surrender value after 2-year full payment

The surrender value is calculated as-

 Guaranteed Surrender Value + Value of Accrued Guaranteed Additions & Special Surrender Value 

FAQ’s

What if one stops paying a premium?

If the premium is not paid within 30 days of the due date the policy will lapse. ICICI Pru Guaranteed Savings Insurance Plan can be revived within 2 years of the first unpaid premium. And, if after acquiring surrender value the premium is discontinued then the policy status will be changed to “paid-up”.

How can I surrender the policy?

The surrender value will be acquired after 3 years of the policy. Surrender Value is calculated as-

Guaranteed Surrender Value (GSV) +surrender value of accrued GA’s

Can I get a loan against ICICI PRU Assured Savings Insurance Plan?

Yes, the loan facility is available under this plan.

Investment

How Much To Save For Early Retirement in India: Early Retirement Plan 

In India, there are so many workers who want to retire early from their job but they don’t know-how. To help you with this, we have organized an early retirement plan to prepare you for everything before getting retired.

Early retirement plan

How Early Retirement is Different from Standard Retirement?

Early retirement is not that much different from standard age retirement. As in early retirement, a person retires from work at an early age than the standard retirement age.

But early retirement doesn’t mean that one has to stop working and spend all the savings. This is one of the misconceptions that people have about early retirement.

A planned early retirement is a part of life in which you will retire just from working for money to start a purposeful life.

Retire Early from the Rat Race

Do you know what the best part about early retirement in India is? May be no. Let me tell you what? You will still not get old as you will get retire in middle age. Hence, you can use that time to make a positive change to your personal and social life.

Apart from this, you can learn something you wanted to pursue at a younger age; because you didn’t have the opportunity before.

Your Indian Early Retirement Plan

An early retirement plan is a two-stage process:

Plan Establishment stage

Plan Implementation Stage

1. Plan Establishment Stage of Early Retirement

The plan establishment stage is a basic level for your early retirement in India. It further has four areas to support the next stage of plan implementation. They are,

I) Choosing the Early Retirement Age
ii) Evaluation of Expenses
iii) Retirement Expense Projection
IV) Corpus Calculation

i) Choosing the Early Retirement Age

The early retirement age is one of the simple parts of the early retirement plan process. Before thinking about anything first you must decide your early retirement age. For deciding this, you need to consider some factors that can help in making a customized early retirement financial plan for your entire lifetime.

Here are the factors you need to consider:

  • A current monthly expense.
  • Expected monthly expenses after retirement
  • Annual or one-time expenses like children’s education expenses.
  • Amount needed for savings
  • Current monthly income.

These are the five factors that one needs to consider before getting retired in India.

ii) Evaluate Your Expenses

If you are a person who already knows the art of budgeting, that’s great!

You don’t? Don’t fret! I’ll help you do that.

For an exact evaluation of your expenses, you must know the average monthly expenses of the past two years. Let me clear you how you need to evaluate your expenses. Firstly, calculate the average expense incurred per month.

  • Get your bank account transactions statements including your credit card statements of the past two years
  • Categorize your expenses based on the nature of the expense.

iii) Calculate Corpus

Corpus is the overall expected amount of early retirement monthly income, the annual recurring expenses, and the onetime expenses as such.

Use the “Expected Post Retirement Expense Calculator” to calculate your post-retirement monthly income and the corpus.

2. Early Retirement Plan Implementation Stage

At the first glance, I am going to clear you one thing that this stage is not an easy task. As we all know implementation of any plan somehow gets hard. But with the following techniques, it is not going to be difficult either.

i) Habit of saving 50% for Early Retirement

No doubt, you have to manage the multifarious expenses of your home but still if you make a habit of saving 50% from your income for your early retirement. Moreover, you must consider this method for your retirement month too.

I have already told you that it can be tough for saving 50% of your income. But take the baby steps today, you can run like an athlete tomorrow.

ii) Increase Your Savings Rate

You can two options to save money from your income; one is by fixing the leakage and the second one is by switching to the second tap.

Cut-Down Expenses

In this method, your only priority should be clearing all your debts including loan repayments as early as possible, if you have any. As we all know, debt traps are literally the dream killers, so kill them before it kills you. By doing this, you can focus on your regular monthly expenses.

Generate A Passive Income

Generating passive income is somehow easy if you have passion in that profession. Let me give you an example, you always wanted to become a blogger or influence the universe when you were young. But you could not, because, at that time, you did not have an opportunity or other reasons like parents did not allow. Hopefully, you have the opportunity now.

So now you have time to pursue your dream so start learning skills that you have an interest when you were young. And then you can monetize your skill to increase your passive income.

Investment Schemes

Best Gold Saving Schemes: How to Invest In Gold In India?

What is Gold Investment?

Gold is one of the most precious metals among all and regarded as the best source of investment. The reasons for invest in gold being the best investment are high liquidity and beating inflation factors. No doubt that gold price also has encountered falls but the comeback is always a great hit. Check out the Gold Rate Today First!!!

There are many forms of Gold Investment like buying gold coins, gold jewelry, gold exchange-traded funds, gold bars, sovereign gold bond schemes, etc.

If you are thinking to invest your money in Gold then you must read this article. We will cover all the important points on How to Invest in Gold India, what are the benefits, the best gold investment schemes offered by jewelers, and why gold investment is preferred so much.

Invest In Gold

How to Invest In Gold In India?

Now the most important question that arises in the head of a “would be gold investor “is- How to invest in Gold In India?

Traditionally people used to buy jewelry, gold coins, bullions, or artifacts in order to invest their money in Gold. But with time investing in Gold has modernized a bit with some new Gold investing schemes like Gold Exchange Traded Funds (Gold ETF’s), Sovereign Gold Bonds, Gold Funds, etc.

Gold ETF: In Gold ETF the gold is stored in the form of paperwork. It is similar to buying an equivalent amount of buying gold but in paper form not having it physically in your hands. It protects the stress of storing the gold and safeguards it from theft and burglary.

Gold Funds: It refers to investing your money in a gold mining company.

Documents Required For Investing In Gold

Following is the list of documents required for Gold Investment in India:

  • PAN Card for more than 2 Lakhs of investment in Physical Gold
  • Brokerage Account + DEMAT Account in the same firm for Gold ETF ( Exchange Traded Funds)
  • KYC is required for investing in Sovereign Gold Bonds
Gold Gold ETFs (Exchanged Traded Funds) Gold Funds
One Can Invest In Physical Funds Purchasing a proportionate value of gold but not in physical form. The investment is made in the form of bullions and the companies involved in gold mining.
No DEMAT account is not required DEMAT Account is required No DEMAT Account is required
No additional charges are imposed except the cost of physical gold Asset management and brokerage fees are included in Gold ETF’s A minimum charge is applied to manage the funds.
It always has a risk of theft and burglary involved if you are having physical gold with you. No risks of theft or burglary as you don’t possess it in the physical form. No risk of theft or burglary involved
Paperwork can be avoided while buying Physical Gold Paperwork is required for investing in Gold ETFs. Paperwork is required for Gold funds.
Market fluctuations are proportionate to the prices of gold. Gold price directly affects that of Gold ETFs. Gold funds are not affected by changes in the gold price.

 

Top 5 Best Invest In Gold Saving Schemes in India:

These schemes are offered by top jewelers. Know about their investing working and the amount for starting investment. Based on the current market scenario the best ways to invest in Gold in India are:

1.) GRT Gold Eleven Flexi Plan

Investing in the GRT Gold Eleven Flexi plan is a great opportunity to start from a low amount that is Rs.500 monthly for 11 Months and shop for jewelry in the 12th month. This scheme is a great opportunity for savings and investment. Also, it also offers refunds in case of non-purchase after completion of tenure.

2.) Tanishq Gold Harvest Scheme

This scheme enables an investor to deposit their money under this scheme for 6-10 months. The money can be used for buying jewelry after the completion of the maturity period of the scheme with a discount of up to 75% on the value of the jewelry.

3.) PNG Jewellers Gold Scheme- Suvarna Poornima Scheme

Investment in PNG Suvarna Poornima Gold Scheme can be started from Rs.3000. The investor can invest the amount as per their wish but after deciding once the amount cannot be changed during the investment period. After maturity, the scheme offers a 10% discount on making charges.

4.) Kalyan Jewelers Gold Scheme

Investment in the Kalyan Jewelers Gold scheme can be started from Rs.500 to Rs.40000 depending upon the jewelry chosen at the start of the scheme. Investment o behalf of minors is permitted but the investor needs to be Indian. The tenure of this scheme is 12 months and will be closed on making a purchase of the gold.

5.) Malabar Gold Scheme

Malabar Gold scheme offers discounts on a wide range of products either they are in-stock products or out-of-stock jewelry items. Customers can also opt 14-day return policy while buying ready to deliver products.

Why Gold Investment Should be Preferred In India?

Due to safety, liquidity, high and profitable returns one invests in Gold. Gold investment is quite safe and far from regular fluctuation in prices, however, some investors consider it as an uncertain way of investing money. But the gold investment is a great way of investment as the return on gold investment is always proved to be in line with inflation. Due to this, it is also considered as an inflation-beating investment. Another major reason is that gold investment provides excellent liquidity to investors.

Final Verdict

Every Gold investment has its own pros and cons. So it’s an individual’s choice whether the investor wants to go for physical fold, Gold ETF’s, or SGB’s. It is quite a safe source of investment that does not assure your regular profit or income but provides excellent liquidity and inflation-beating rate. It is suggested that investors having liquidity as their priority must go for Gold ETF’s and who don’t need short term funds should invest in Sovereign Gold Bond.

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