Investment Plans

Basically, an investment plan is a financial product that gives you a chance to save your money and future as well. The benefit of choosing the life insurance plan is that it can create wealth for the future and gives you life coverage also. Life insurance plans come in two types, one is based on Unit Linked Plans (ULIPs) which are based on market performance and the other one is endowment plans and this plan offers a lump sum amount at the end of the policy term. These types of schemes and investment plans cover the life coverage of you and your family.

Top Best Benefits of Investment Plans

Protect Your Family

Investment returns give you double benefits of life cover and also return to you and your family

Goal-Based Planning

If you want to buy a new car, paying for children’s education fee, or is planning for marriage, this plan is the perfect option

Build Fund Reservoir

Build Fund Reservoir is one of the investment plans with coverage cum investments. It will let one save a lot in this lockdown period.

Tax Benefits

The premiums paid under these investment plans fit the qualify for deduction under 80C of the Income Tax Act, 1961 up to applicable limits.

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Main Objective of Investment Plans

Every investor has different objectives so their plans are. Some of the top most popular and common investment plans are:

Safety

Everyone is looking for safety while investing somewhere or you can say it’s one of the prime objectives for everyone. There are numerous investment plans available in the form of ULIP that offers you 100% ensured bring probability back.

Income

After security, comes compensation. The most secure investment plans are the ones that are probably going to have a lower yield or rate of income return. Investors take risks so that they can get better results and earn more. When the returns increase, the peril will automatically increase.

Tax Minimization

Many of us want to save our money from tax and this is the only reason people choose investment plans. It’s a strategy to save your hard-earned money from tax. According to the income tax act 1961, the investor can get tax cuts under the section of 80C, 10(10D) and it is totally legal.

Frequently Asked Questions

Debt Mutual Funds

Debt mutual funds are one of the safest and most preferred investment plans with high returns; the money is majorly invested in high-rated debt instruments like corporate bonds, government securities, and treasury bills

As PPF investment is a relatively safer option but it offers much lower returns over a longer time horizon than ELSS.

These are some options in which middle-class people can invest:

  1. Public Provident Fund
  2. RBI Bonds
  3. National Pension Schemes
  4. Debt Mutual Funds
  5. Bank Deposits

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