Best guide for 5 year investment plan in India 2021

Best guide for 5 year investment plan in India 2021

investment plan
The 5 year investment plan in India is a combination of both investment and insurance. In today’s time earning money is not enough, it is most important to save to meet the needs of the future, it is possible only then.

Best guide for 5 year investment plan in India

When we invest, You can consider investing your hard-earned money in investment options like equities, stocks, mutual funds, fixed deposits, etc.

A part of your premium is used to provide you with insurance coverage (life cover), and the remaining part is to measure your risk appetite.

The investment is made in the financial instrument accordingly. Such plans help you meet your short-term as well as long-term financial goals. 

Good “5 year investment plan in India” option if you want to increase your wealth and save on taxes.

1- Types of 5 year investment plan in India

Best guide for 5 year investment plan in India

There are four types of investment plans which are as follows.

1- Unit Linked Investment Plan(ULIP)
Unit Linked Investment Plans or ULIPs give returns purely based on market performance.

In each of the form of financial savings schemes or best investment plans provides the policyholder with life insurance coverage and financial savings options.

ULIPs are an excellent investment option as they invest a part of their money in markets, debt, or equities, i.e., opportunities for higher returns.

2- Endowment Plan
An endowment plan offers low but safe returns. Due to the endowment plans, it is not possible to see where money is invested.
There are many benefits of endowment plans. Endowment plans act as a guaranteed financial savings option as they provide assured returns.

3- life insurance investment plan
You can also provide security to your life along with investing in a life insurance investment plan. It assures meeting the financial goals of you and your family. Life insurance fulfills all your financial goals in your absence.

4- Guaranteed Return Plan
Guaranteed return plans provide guaranteed returns to the policyholder at the end of the policy. There are guaranteed return plans that provide up to 25% returns in the fifth year.

2- Why 5 year investment plan in India is Beneficial

  1. Financial Protection: Your short and long-term goals can be completed, like a marriage of children, education, etc.
  2. Good Returns: Returns on investment plans are generally better if you consider the post-tax generation as compared to other investment options (especially unit-linked insurance plans).
  3. Tax Benefit: You get a tax deduction for the premium paid under section 80C, and the amount received by you on maturity is tax-free under section 0(0)D of the Income Tax Act
  4. Riders Benefits: You can buy riders like critical illness, accidental death, waiver of premium, etc.
  5. Loan: You can also get a loan against investment if you require money during the policy term. The interest rate differs from company to company.
  6. Dual Benefits: You get the benefit of saving your money for future needs, as well as growing your corpus by investing in the stock market.

3- What are the investment options in India

  1. Public Provident Fund (PPF) – Public Provident Fund is a popular plan among investors due to its low risk and features. This plan is for those who want to get high returns with long-term investments.
  2. Mutual Funds – Mutual Funds – Mutual is a type of investment scheme in which many investors join together to invest the accumulated capital in buying shares, stocks, or bonds. Investing in mutual funds is done for capital gains.
  3. Direct Equity – It is also known as Shareholders’ Equity. It offers low risk and good returns on long-term investments, helping you save on your expenses.
  4. Real Estate Investment – The real estate market in India has huge growth potential and is profitable. The investment made in it only provides profit.
  5. Gold Investment – Investing in gold is considered very good for investors as it has high returns and low risk. In today’s time, investors are interested to invest in Gold Funds.
  6. Post Office Saving Scheme – Known as Post Office Saving Scheme. The post office saving scheme is a profitable deal as the risk potential in it is negligible. Every person in India can easily invest in the post office.
  7. Company Fixed Deposits – Company Fixed Deposits offer a higher rate of interest. A long-term investment made in this is more profitable. 
  8. Initial Public Offering (IPO) – is the process of issuing new stock of shares by private companies to the public. A good company’s IPO gives good returns to the investor.
  9. Bonds – This is a long-term financial investment that allows bondholders to hold creditors liable. Interest on the bond is taxable. But the entire bond amount is exempted under the tax act. One can subscribe to bonds in the form of cash, draft, cheque. 
  10. Bank FD – Bank FD is one of the popular investments in India. Investing in this is safe, and the chances of good returns are high. A lump sum is deposited in the bank at an affordable rate for a fixed period.
  11. Senior Citizen Saving Scheme – Senior Citizen Saving Scheme is a tax-free scheme for senior citizens above 60 years of age. This scheme provides income along with regular savings.
  12. R B I Taxable Bond – R B I Taxable Bond – It is available in Demat format for a tenure of 7 years.
  13. National Pension Scheme – Bonds are issued in ‘cumulative’ or ‘non-cumulative form at the option to the investor, and the rate of interest can vary from 6.25% to 7.75%, which move from bank to bank.

4- Compare Investment Plans

You can ask for it, and there are many other offers also available which can easily confuse you. Because of this, it will be difficult for you to understand which investment plan is best and which one you should choose.

Investing is something that helps an existing person make more money. Thus, a wrong choice can land you in trouble, which is why comparisons are essential so that you can get the best plan.

  • It will be easier for you to clear your doubts and confusion regarding your investment needs and search for the best plan by doing an online investment comparison.
  • Comparing investment plans online gives you multiple options on a single page, where you can compare their features, benefits, disadvantages, and prices.
  • With this useful information, it will be easy for you to choose the best plan that offers good returns on time. To avail of the investment plan comparison service and get the best plan in a matter of minutes.

5- Check before investment plan

  1. Investment Purpose: Generally, people invest their money with the sole objective of getting returns. The period to accomplish the desired result may be different.
  2. Identify the fund house: When you put money in a fund, you permit the fund house to use your money on your behalf.
  3. Fund Overall Performance: The ultimate objective returns. Investors should look at the returns delivered through the fund at some point in time and compare them with the benchmarks, indices, etc. 
  4. Fees: Not too short prices can have an impact on returns in the long run. A 0.50% difference in normal value over an extended period of, say, 90 years can make a big difference. However, many people do not have a look at the claim ratio of the fund house before investing. People should also check this.
  5. Research on Fund Manager: It is important to recognize the fund supervisor as well. One can do this by analyzing the overall performance of the price range it manages, especially when the market is going through tough times. 

6- Buy 5 year investment plan in India online

Nowadays, many investment companies assure you of good returns. They are also offering many benefit plans, and a lot of them might confuse you. Thus need to compare plans online.

  • To get the best investment options online, you can buy from the company’s online portal, which will make it easy for you to compare investment plans from the comfort of your home.
  • With the help of a free comparison service and quotes, you can understand the difference, which is the best policy for you. 
  • It is necessary to invest your money in the right investment plan. You can buy online as it will save you money and time as well.

7- Tips for 5 year investment plan in India

  • Choosing the best investment plan is a good decision. All the same, you will be the personal decision-maker. As an individual, you have to bear all the risks associated with the investment plan.
  • Always keep in mind the golden rules related to investment plans.
  • There is no completely safe investment plan. There is always a level of risk that is associated with it.
  • Return and risk always work in parallel. The higher the risk, the higher the return, and the lower the risk, the lower the return.
  • You have to understand the plan completely first, then go for it.
  • Don’t invest all the money you have. Keep a part of it with you to take care of any emergency.
  • Consider yourself the final choice-maker in choosing a funding plan.
  • Get advice from a professional and certified consultant. 
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  • Before investing in any company, take a look at its track record. Don’t invest only in the promise of high returns.
  • Make a plan for it before investing.
  • Never make investment choices on the idea of ​​any unsolicited information.
  • Never take a funding plan from an unknown person.

8- Investment plan buying process

  • A hassle-free place that helps you in buying the desired plan.
  • It will also save time and money.
  • Simple process, enter some basic requirements and details to find the best insurance plan
  • Compare the plans offering by insurance companies.
  • Choose a plan that suits your needs.
  • Fill out the offer form filled in some basic information.
  • Upload your documents online. Make the payment through the selected mode.

9- Required Document for 5 year investment plan in India

  1. Birth Certificate
  2. Identity Proof
  3. Income Proof
  4. Address Proof

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