With numerous investment options available in India, it's important to choose the ones offering good returns while aligning with your risk appetite and financial goals.
If you are wondering where to invest money to get good returns, here are some of the options you may consider.
1. Unit Linked Insurance Plan (ULIP)
A Unit Linked Insurance Plan (ULIP) offers market-linked returns. What makes these plans even more lucrative for some is the life coverage offered alongside. Buying a ULIP plan that offers insurance plus investment benefits, can be the right option for investors wanting their money to grow but not wanting to forgo the security of life coverage. It is also ideal for people looking to keep it simple by having multiple benefits under a single plan.
2. Mutual Funds
This instrument pools money from multiple investors to invest in stocks, bonds, or other securities. Mutual funds are managed by professional fund managers, offering diversification and professional expertise. You can choose from equity, debt, and hybrid funds.
3. Public Provident Fund (PPF)
The Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India, offering attractive returns and tax benefits. Contributions to PPFs are eligible for tax deductions, and the interest earned is also tax-free.
Life Insurance with Investment
When investing your money, the key goal is to create wealth for the future. However, often wealth creation is not enough. Planning for contingencies must be a fundamental aspect of your financial planning, especially if you are someone who supports dependents, such as a spouse, parents, or children. To ensure their future is secure, irrespective of whether you are there in their lives or not, having a life insurance plan becomes important.
Life insurance plans are considered investments because they may not offer direct growth of the money you put into them. However, it is important to supplement your investments with a life cover to have a financial safety net for your family.
Some life insurance plans, such as ULIPs, can also serve as a safe investment option with guaranteed returns.
When choosing a life insurance policy, use a life insurance calculator to ensure you understand what returns to expect for the premium you put into them.
Diversifying your investments across these options can help balance risk and returns, ensuring a robust financial portfolio tailored to your needs.
Disclaimer:
Tax benefits are as per the prevailing Income Tax Laws including the Income Tax Act, 1961 and are subject to change from time to time.
Unit Linked Life Insurance products are different from traditional insurance products and are subject to market risks. Please know the associated risks and the applicable charges from your sales representative or the intermediary or policy document issued by the insurance company. The premium paid in Unit Linked life insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of the fund and factors influencing the capital market and the insured is responsible for his/ her decisions.
The investment risk in investment portfolio is borne by the policyholder.
The various funds offered under Unit Linked Insurance contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. Unit Linked Funds are subject to market risks and there is no assurance or guarantee that the objective of the investment fund will be achieved. Past performance of the investment funds does not indicate the future performance of the same.
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. IndiaFirst Life Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and IndiaFirst Life and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
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