Building Financial Security with Different Types of Investment Plans

Everyone’s financial goals change after a period of time. Some may consider saving for the future, while some may need funds in the short term to cover an immediate expense. It is, therefore, necessary to explore and build your financial security accordingly.

Today, we shall discuss five investment plans, which you can buy from a reliable insurance company. Also, you’ll find a bonus tip towards the end of the read, which shall strengthen your financial security even more.

Understanding Your Investment Plans

When you begin searching for good investment options, it is a must to know your specific plans. The amount you wish to risk and which category of investors you are will also determine the kind of investments you can make. There are basically three types of investments based on term duration:

– Short-term investment options

– Mid-term investment options

– Long-term investment options

You must carefully pick between them depending on how much risk you can bear. It is a crucial aspect when it comes to investing.

5 Plans Worth Considering for Investing

1. Recurring Deposits (RDs)

Recurring Deposits (RDs) are low-risk options in which you pay a fixed amount of money at regular intervals, such as monthly, quarterly, or even annually. This develops a habit of regular saving and allows you to build a pool of funds over time.

RDs offer a fixed interest rate, which is slightly higher than FDs. This option is ideal if you’re looking for short term investment options.

2. Arbitrage Funds

If you’re looking forward to investing in mutual funds, you may consider arbitrage funds as well. It is because they are similar options and their performance is market-based. They are a popular choice for those seeking diversification and potentially higher returns than fixed-income options.

These funds get invested in a variety of commodities like stocks, bonds, and commodities. Nevertheless, such investment plans also bring along risks subject to market fluctuations. So, invest only if you feel like you can bear the risk.

3. Monthly Income Plans (MIPs)

Here comes another good investment option for you investors to pursue both growth and regular income payouts. Monthly income plans, or MIPs, tend to be invested in a mixture of stocks and bonds. They basically make you eligible for the possibility of capital growth as well as regularly received dividends or interest.

If you’re someone who’d love to have a regular income and some capital appreciation, this investment option is for you. However, there’s one risk that may take all of the benefit away, and that is market risks and there is no guarantee of regular returns.

4. National Pension System (NPS)

National Pension System (NPS), is a savings investment scheme for Indian citizens 60 years and above in the country. These are retirement-specific schemes offered by the government. They have contribution benefits towards saving taxes along with investment benefits.

Also, it allows you to make investments in the form of your investment mix. The risk of investing in NPS is the long lock-in period, which is usually till retirement, and the withdrawal options are also less.

5. Unit Linked Insurance Plans (ULIPs)

One such investment for those who want to opt for a high-risk investment plan is ULIP or Unit Linked Insurance Plans. These investment plans offer insurance coverage along with market benefits.

Some of your premium pays for the cost of life insurance, and the rest goes into the market. This way, a ULIP provides the benefit of choosing what you want to invest in and also allows tax savings on payment of your premiums.

Make Smart Investments with this Bonus Tip Today!

Investing is something that most of us get into while having less knowledge, but with the above information, you can now make wise decisions. Now it’s time for that bonus tip. Though investment plans are generally linked to your financial position, it is essential that you pick the right partner, like Canara HSBC Life Insurance, for this.

Their investment plans can bring you triple benefit, which is investment benefit, insurance, and tax benefits. Your financial reward will basically triple. So, to enjoy these returns, visit their official website to invest in their online plans like iSelect Guaranteed Future Plus, Young Term Plan, etc.