Investment Plans Guide For Beginners in India:
Let us discuss about best investment plans available for beginners in India.
How choose a Best Investment Plan:
Investment Plans are best way to make your future financially stable. Â To get financial security you need to invest money for certain period. Investment is the best option to make money work for you. While providing an excellent saving plan for short term and long term financial goal, these investment plans assure your family a certain amount fund in form of insurance cover. Before choosing an investment plan you make study about all plans with help of insurance advisor, calculate life coverage and compare with all other insurance plans. This article helps you to choose the best investment plan.
Main things to check before you take Best Investment Plan:
Coverage: Most comprehensive and feasible coverage offered by plan is an indication of perfect and best investment plan. So you need have complete idea of the life coverage option given by the plan.
EXTRA Coverage, Riders and other Discounts: All good investments plans offer you extra coverages and additional discounts. Extra cover includes increased life cover, coverage for parents, specific health cover or health checkups or any others. Rider Add-on is included as per investor interest like child education cover etc. As Investor can Extra Coverage and Rider as per their choice.
Change Cover: Some investment plans have option to increase or decrease the cover in policy tenure. This should be essential option in investment policy.
Premium: Insurance premium includes investment funds along with extra fees and charges, so more extra charges will affect the premium investments. All plans offer same premium but other extra charges may affect the benefits investments. SO you should check out what part premium is included in investment.
Flexible Premium: A good investment plan should have option for increasing or decreasing the premium upon your capability.
Return: Good Returns proves the quality of the best investment plan. The ULIP plans offer good profits depending of markets while endowment plans are offer you stable and constant return with minimum profits.
Type of Payments: Every investment plan has its own way to payout. Some plans offers you single payment, some offer annual and some both of them. So type of payouts depends on type of plan.
Insurance premium payment: In your investment plan the payment options can be monthly, quarterly, half yearly or annual payments. Every investment plan should have flexibility to change payment periodicity (Ex: Monthly to quarterly or quarterly to annually).
All insurance policies are exempted under Tax Act up to certain limit.
Types of Investment Plans:
- Life Insurance Investment Plans
- Unit Linked Investment Plans
- Endowment Plan
- Guaranteed Return Plan
Life Insurance Plans:
The best investment plan offers the investor both life coverage and added advantage of saving fund. Life Insurance investments always focuses on future motive, Main goal of policy can be short term or long term like child education, retirement saving, Buying house etc. Life Insurance Investment are best and secure investment plans.
Unit Linked Investment Plans:
Unit linked investment plans are coverage plans the complete life coverage and high returns and another main objective in this unit linked investment plans are the premium we pay will be directed into stock markets. Unit Linked Investment plans are the best investment plans in India. As these plans make financially secure and gives your life coverage, cum investment option. Your ULIP funds are invested in equity funds or debt funds or both of them; these are evaluated as net asset value.
Potential Returns:
Returns in this Unit linked investment plans are lower compared to similar investment plans like Mutual Funds. But returns are as assured by plan as these are low risk plans.
Liquidity:
In any emergency you can easily withdraw money from ULIP plans.
Low Risk Plans: All ULIP plans are low risk plans with life coverage. All ULIP plans have large scope to invest in stock but they need high attention as they are insurance plans.
Endowment plans:Â These plans are like Life Insurance plans which provide life coverage with very less profit. Endowment plans are for the people who are more concerned about security of the funds with less profit on their assts.
Guaranteed Return Plan:
These plans offer a guaranteed amount of fund at end of your policy. The guaranteed amount will be based on the terms and conditions of the policy.Â
Best Benefits Offered by a Best investment plan:
Life converges: A best investment plan should provide both life coverage and good returns. If anything happens unfortunately to the investor their family will receive the sum for which they insured. They secure the family needs and monetary goals if the insured is unable to earn or sudden demise.
Goals are set Saving:Â This option helps you saving money to complete your responsibilities like children education, house, retirement plans etc. Endowment plans offer secure and profitable returns if you are not keen at markets fluctuations.
Secured Financial future: Investment plans with life coverage and investment for certain time spam make you save money that keeps you financially stable in future.
Tax benefits: All these plans are comes under TAX act. So you need not pay TAX for these investment plans.
Best Option to Investment plans India:
- HDFC LIFE
- ICIC Pru Smart Life
- Bharati AXA eFuture Invest
- SBI Life-Smart Scholar
- EXIDElIFE Wealth Maxima
- Futura Generali Easy Invest online plan
- HDFC SL Young Star Super Premium
- Aviva Growth
- Retire Rich
Right way to invest money makes your more profitable.