Insurance-cum-Investment Plans | FAQ's
FAQs About Insurance-cum-Investment Policy;
01: What is investment planning?
Investment planning refers to the process of fulfilling your financial obligations/goals with your financial resources. Investment planning is the core financial planning that helps an individual to establish investment goals, determine their risk appetite and choose an investment option, which helps an individual to grow their wealth and fulfill their financial goals. Essentially this plan helps manage your investments and help you manage your money to achieve your goals.
02: When should I start investing?
There is no specific age at which one should start investing their earnings to grow a corpus. It is advised to start investing your money in different investment options at a young age or as soon as you start earning. This will provide you more time to build a bigger corpus. This way you will be able to overcome market risks and gain high returns in the long-term.
03: Are investment plans risk-free?
Market linked investment options always involve some kind of risk because return on investments totally depends on the performance of the investment option in the market. There are few risk free investment options available in India that provide guaranteed return on investment such as Savings account, Post Office Schemes, Fixed Deposits, Recurring Deposits etc.
04: Which is the best investment plan option in India?
There are plenty of investment plans available in India, you can choose an investment plan that suits your requirements. You should always choose an investment plan based on your risk tolerance. Check the rate of returns and select a plan that suits your needs.
05: Which investment plan gives the highest return?
Top investment option that can help you achieve high returns on investment are Direct Equity, Equity Mutual Funds, Debt Mutual Funds, National Pension System, Public Provident Fund, Bank Fixed Deposits, Senior Citizen’s Savings Scheme, Pradhan Mantri Vaya Vandana Yojana, Real Estate and Gold. You can choose to invest in the mentioned investment plan according to your risk appetite.
06: What are the 4 types of investments?
There are 4 main types of investments available in India classified on the basis of characteristics, risks and benefits. The 4 types of investment are Stocks, Bonds, Mutual Funds and Cash Equivalents.
07: What are 3 good investments?
As a beginner you can consider some investment options which will help you avail high return on investment. 3 good investment options for beginners are Unit Linked Insurance Plans, Bank Fixed Deposits and Mutual Funds.
08: How can investment plans help in retirement planning?
Investment plans can help an individual create a corpus for retirement, helping them to ensure a financially independent life as they retire. An individual can choose to invest in retirement savings plans that provide a lump sum as retirement fund or maturity benefit which can help an individual to ensure income after retirement.
09: What is the difference between saving and investing?
People almost use savings and investment conversely not knowing that both of them are different from each other. Savings accounts are low risk accounts under which rate of interest is earned on the money one saves. Savings account lets an individual save money for a short period. On the other hand investments involve high risk and the return on investment are high as compared to savings. Investments let an individual create wealth over a long period of time.
10: How can I save tax on my investments?
While choosing an investment option look for one which provides tax benefits under Section 80C of the Income Tax India, 1961. Some investment options that provide tax exemptions are Equity Linked Savings Scheme, Public Provident Fund, Employee Provident Fund, Unit Linked Insurance Plans etc.
Link: Understand more on Investment-cum-Insurance Plan in detail.
Terms and Conditions:
*Standard T&C Apply. For more details on risk factors, terms and conditions, please read the sales brochure of respective insurers carefully before concluding a sale. Tax benefits are subject to changes in applicable tax laws. For detailed communication on sales contact below authority.
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Insurance Advisory Club
IRDAI Licensed Agent
- Mr. Dheeraj Bodduna
Financial Advisor
Contact: 85220 66133
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