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What To Know Before Getting an Investment Plan In India?

One of the most fundamental reasons why people invest in various plans and measure return margins is to facilitate the dreams and goals they want to support and realize in the long run financially. An investment plan is an integral tool in that pursuit. The idea behind wealth creation over an extended period is to live a secure life while also being relieved about the future and its expenses.

Investment plans are a dependable way to tailor your financial planning according to your needs and increase one’s financial corpus over a set length of time. There are unique investment plans in the market that allow individuals to cater to their life cover and wealth-creation need with the help of one financial instrument.

People with cost-intensive goals such as higher education, marriage, real estate purchases, and Retirement should begin their wealth accumulation journey by choosing an investment plan best suited for their goals.

Looking through types of investments in India is an optimal space to start, where there are options between long-term and short-term plans. The central goal of an investment plan is to provide and afford visibility for the investor. Additionally, they are also tools for investors to realize their goals and prepare themselves for any future financial and emotional stress in a planned and regulated manner.

An investment plan, by its very nature is designed to cater to the diverse Indian market but some common features can be found in a standard investment plan in India; let us look at the following:

1. Investment Amount/Premiums: Like most financial instruments, you have to pay a certain amount of money to keep your investment plan active. The amount depends on the type of investment plan you choose and how it is structured in pay-out, investment tenure and other essential factors.

2. Interest Rates: The interest rates of an investment plan are the rate at which they will grow over the specified investment tenure. Depending on the nature of the investment plan, you can avail of substantial returns.

3. Duration of Investment: One of the most important things that an investor needs to consider is the duration of the investment plan. Evaluate how long you want to pay premiums and when you want to start receiving the pay-outs. Most investment plans allow investors to choose from various premium payment plans.

4. Pay-out Options: Investment plans are designed to aid an investor’s finances by assessing their current financial responsibilities as well as any future aspirations that may necessitate financial support. In this case, one must decide if monthly instalments or a lump sum payment are more advantageous.

5. Returns: Compared to savings policies, the most profitable part of investments is their potential to provide large returns. It thrives when the market is up, whereas a fixed interest rate limits fund growth in a savings account.

6. Life Cover: Some investment plans in India also cover the investor’s life, but it is limited to the amount they have accumulated under the policy. If coverage is required, there may be variables such as a lock-in period or reduced payment benefits.

Now that the features of investing have been established, let us look at how investing can be beneficial for an investor looking for ways to grow their corpus:

1. Capital Increase: If an investor wants to expand their portfolio by exponential margins, investment plans are a great way to do it. Savings can’t help you expand your money, but adequately allocated assets that grow with the help of interest rates are excellent tools for capital growth.

2. Tax Benefits: Since investment plans are a crucial financial, Section 80C of the Income Tax Act of 1961 allows tax exemptions on some of them, such as PPFs, National Pension Schemes, ELSS, and ULIPs.

3. Security: Investment and insurance plans are meant to provide investors with a sense of financial security. They are designed in a way that they can cater to diverse financial profiles.

4. Goal-based Finances: Investment plans can help individuals make a more efficient financial plan and instil disciplined savings and investing habits in the long run. Certain goal-based financial decisions can make one’s life much easier if one plan for it at the right time. For instance, if you begin saving up for your child’s higher education while they are still young with the help of an education investment plan, they will have a substantial corpus to rely on when they need it.

5. Cater to Diverse Needs: There is no shortage of investment tools for modern investors looking to satisfy their distinctive financial needs. One can choose an investment plan best suited to their risk appetite, required benefits and return needs.

Max Life Insurance can be the perfect guide to help you navigate the investment plans and aid you in your investment pursuits. From market-linked instruments to low-risk long term plans, find your best investment solution with Max Life Insurance.

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