In the not-so-distant past, there were only a few investment options available in the market.In recent years many new-age investment products like a Unit Linked Insurance Plan (ULIP), Mutual Fund SIPs, have also become quite common and easily accessible. Moreover, all these investment products provide a host of benefits, which will help you to fulfill your life goals with every passing year easily.
Investing ensures the security of your present and future financial goals. When you generate money from investing, you can easily accomplish your life goals. For instance, if you wish to become financially independent or plan on retirement, investing is the right way to do so.
Before opting for a suitable investment plan, let’s take a look at these 4 investment options that will aid your financial growth this year:
- Unit Linked Insurance Plan (ULIP)
A ULIP Policy is a mix of insurance and investment. It is a dual product, which not only secures the financial needs of your family but also ensures your participation in the equity market. If anything happens to you, your nominees will receive a death benefit to accomplish their life goals in your absence. Speaking about the investment aspect of a ULIP policy, it will ensure the growth of your funds until the policy tenure. The beauty of these product is that it also offers you a living benefit also known as Maturity Benefit. This benefit can help you get your Life Goals Done.
- Equity Mutual Fund
An equity mutual fund is a market-linked security product. Under the equity mutual fund, you could earn decent returns over a long investment period. However, the risk involved in equity mutual fund is more. You can invest either in an actively or passively managed equity fund. In an equity mutual fund, while a minimum of65% is invested in equity and equity-related securities, 35% goes in debt and money market instruments.
- Public Provident Fund (PPF)
A PPF is considered as the safest option of investment. It is a good choice for your long-term investment goals since it has a lock-in period of 15 years. Moreover, you can extend the tenure for 5 more years. You can open a PPF account in a bank or a post-office. When you invest in PPFs, you can obtain compound interest on your accumulated money. In addition to this, it is one of the most preferredtax saving investments.
- RBI Bonds
RBI Bonds has a tenure of seven years. These bonds are issued in Demat mode, which is later credited to your Bond Ledger Account (BLA). It is generally issued at approximately a price of Rs. 100. When you buy these RBI bonds, you will receive a Certificate of Holding. Additionally, it offers an interest rate of at least 7.75% per annum. You can avail this interest as regular income in the non-cumulative option. In the case of a cumulative option, the amount you earn is reinvested.
To sum up, the investment options mentioned above are fixed income as well as market-linked. Both these forms of investment options play a crucial role in generating wealth. While fixed income options preserve your wealth, the market-linked products generate returns based on market volatility. However, you should opt for that investment product, which offers a mix of insurance and investment. A dual investment product will ensure your safety as well as build a corpus to accomplish your long-term goals.