Contents
- Overview
- Best investment plan in India (2019)
- Type of Investment Plans
- Life Insurance Investment Plans (Best investment plan)
- Unit Linked Investment Plans (Best investment plan)
- Potential returns
- Liquidity
- Risk Exposure
- Endowment plans (Best investment plan)
- Guaranteed Return plan (Best investment plan)
- What are the objectives of best investment Plan?
- Advantaged of Investment Plans
- Protection to loved ones
- Goal-based planning
- Build Funds reservoir
- Tax benefits
Overview
The investment plans are the products that enable the user to create wealth for future scenarios. In the case of Insurance Plans, it is a double benefit plan to consider making it best investment plan to consider. Not only it will provide coverage to the investor but also the returns on the investments. There are mainly 2 types of plans in this case
- Unit Linked plans that provide returns based on the market conditions
- Traditional endowment plans that provide a lump sum value at the end of the maturity of the policy.
In the case of traditional endowment plans, the returns are comparatively much lower than in the case of Unit Linked plans. Also, in the case of the traditional endowment plans, the investor doesn’t know where his/her money is being invested. Unlike, in the case of Unit linked plans, where the investors know exactly where his/her money is being invested.
Best investment plan in India (2019)
| Investment plans | Plan type | Entry age | Maximum maturity age | Policy terms | Fund options |
|---|---|---|---|---|---|
| HDFC Life Click2invest | ULIP | 30 days-65 years | 75 years | 5-20 years | 8 |
| SBI eWealth | ULIP | 18-50 years | 60 years | 10-20 years | 4 |
| ICICI Pru Smart Life | ULIP | 20-54 years | 30-64 years | 10-25 years | 8 |
| Bajaj Gain Life | ULIP | 1-60 years | 70 years | 10 years (minimum) | 7 |
| Aegon invest | ULIP | 7-55 years | 70 years | 10/15/20/25 years | 5 |
| Bharti AXA eFuture invest | ULIP | 18-59 years | 69 years | 10 years | 6 |
| SBI Smart-Life scholar | Unit Linked Child Plan | 18-57 years (0-17 years for the child) | 65 years | 8-25 years minus the child’s age at entry | 7 |
| Bajaj Alliance Fortune Gain | ULIP | 1-63 years | 70 years | 7-30 years | 7 |
| Future Generali Easy Invest Option Plan | ULIP | 0-50 years | 18-70 years | 10-20 years | 5 |
| HDFC SL Youngstar Super Premium | Unit Linked child plan | 18-55/65 years | 65/75 years | 10-20 years | 4 |
| Aviva iGrowth | Unit Linked Life insurance plan | 18-50 years | 60 years | 10,15,20 years | 3 |
| Bajaj Alliance Retire Rich | Unit Linked pension plan | 30-73 years | 80 years | 7-30 years | 3 |
| Retire rich | Unit Linked pension plan | 30-73 years | 37-80 years | 7-30 years | 1 |
Type of Investment Plans
- Life insurance Investment plans
- Unit Linked Investment Plans (ULIP)
- Endowment Plans
- Guaranteed Return Plans
Keep learning on different Types of mutual funds in India
Life Insurance Investment Plans (Best investment plan)
The best investment plan is the one that provides life coverage including the savings option. Any investment should be made by keeping an objective in mind. It could be long-term or short-term. Like, child’s marriage, child’s education, buying a house, etc. An investment that provides 2 in one solution should be preferred above all. Look for monthly income plan now to maximize your return after retirement.
Unit Linked Investment Plans (Best investment plan)
Unit Linked Investment Plans is also known as a coverage plan, that provides coverage and the money paid by the investor as premium is invested in the stock market. This is again, one of the best investment plan to consider. This is because the best investment plan provides some life coverage as well as some financial security.
ULIP provides the investor with an opportunity to invest in equity markets or debt markets. They can either invest completely in debt/equity markets or go for hybrid investment. The value of debt and equity funds can be calculated as the Net Asset Value of the company.
In comparison to this, the investment made through mutual funds could be in multiple ways using the option of SIP (Systematic Investment Plan). Equity-oriented mutual funds, invest a major part of their investment in equity related instruments. Debt-oriented mutual funds invest in bonds and fixed income securities. Whereas, hybrid funds both the schemes in some percentage.
Difference between ULIP and Mutual funds
Potential returns
The returns earned by investing in ULIP is lower than mutual funds because the risk factor is lower. The sum assured promised is regardless of the return earned by the ULIP program. Whereas in the case of mutual funds, the returns earned are differently equated as the returns on the equity market is higher than the hybrid investments. And the returns on hybrid investments is higher than the debt investments.
Liquidity
Although, the amount invested in ULIP could be withdrawn and used anytime. Yet in the case of mutual funds, the liquidity is more than the ULIP. Keep learning on how liquid funds work.
Risk Exposure
In the case of ULIP, the risk is lower than the mutual fund schemes. As it is treated as investments made in insurance. But in the case of mutual funds, the risk of equity funds is higher than the hybrid funds and the risk of both is comparatively much higher than the debt funds. So, it is advised to make the investment in any of the scheme by properly calculating the net asset value i.e. NAV.
Endowment plans (Best investment plan)
In this case, the investments are made in the best investment plan with the main aim of providing life coverage and not generating higher profits. The people who don’t want many profits but want to keep their funds safe and secure, and still receive a certain amount of profits.
Guaranteed Return plan (Best investment plan)
Guaranteed return plan offers the investors a guaranteed return on their investments. But it should be on the terms and conditions of the plan. These conditions could be as follows
- Highest Net Asset Value, usually in the case of Unit Linked plan
- The unit Linked plan offered ‘Capital guarantee’
- Traditional endowment plan offered ‘Maturity Guarantee’
What are the objectives of best investment Plan?
- In case you want the corpus building, a traditional ULIP without guarantee
- An annuity plan for the retired person
- If you want to save, then choose the ULIP with a guaranteed returns
Advantaged of Investment Plans
Protection to loved ones
An investment made that includes coverage along with returns ensures the future of the loved ones. In the case of either unable to earn income or the unfortunate demise of the investor, the family of the loved ones will get some financial assistance. It could be in the form of yearly, monthly, weekly or the case may be. They will get the basic money invested and the returns earned on those investments making it the best investment plan.
Goal-based planning
It is a great way of saving money if the investments are made considering goal-based planning. It could be your child’s education, buying a property, after retirement benefits and so on. Investments made in endowment funds are less riskier as compared to market-linked ULIP funds. In the case of ULIP investments, the money invested is much risky but offers better returns making it the best investment plan. Also, the lock-in period of the investments ensures that the funds invested are not touched for a long period of time and you can build financial wealth to achieve the goal you set before making this decision.
Build Funds reservoir
The investment plans that provide coverage and returns, and is made using lock-in period facility should be enough to reach your financial goals. It builds enough funds reservoir for you to accomplish the goals you set before making the investments.
Tax benefits
As per the section 80C of the Income Tax Act, the investments made in this respect calls for tax exemptions up to a certain limit. However, the limit could not be exceeded for tax exemptions. Moreover, the payouts under this are exempted from tax under section 10(10D) of the act, making it one of the best investment plan.
WealthBucket is a great website that deals in mutual funds investments. Cater to the advantages of our services like equity fund investment, Debt mutual fund, Large Cap mutual fund or Multi-Cap mutual fund. You can tap on given tabs. Either visit our website WealthBucket. One can give us a call us at +91 9999379929. You can also email us at contact@wealthbucket.in for any query linked with mutual funds and its investment.
Related Articles
How a Mutual Funds Calculator works
