Every investor has different financial goals and capacities. The middle class has to bear tax-related financial burdens along with other responsibilities. So, it is important and helpful for them to have multiple income sources. Investment plans are the best options that can help them overcome these burdens. But because of a lack of information, they might not realize how many opportunities exist through which they can increase their financial status. So, here are some of the best tips on long-term investment that can help them have a clear vision of how they can get a good return by investing in different investment plans.
What is an Investment Plan?
Investment plans are the tools through which you can build wealth over time. Different banking and financial companies offer various types of investment plans. It requires planning and understanding the different schemes to know which will provide the best results.
Investment plans allow maximizing savings systematically and creating wealth for the future. The first step before purchasing any plan is to understand your financial needs and choose an investment plans that aligns with your needs.
Things to Consider While Purchasing an Investment Plan
To choose the best investment plan, you should keep the following tips in mind.
- Identify your goals
- Gain knowledge about different financial products
- Define your goals based on the investment period
- Plan long-term investments as they can provide higher returns compared to short-term plans
- Estimate your risk tolerance level by considering the market conditions
- Take advice from any certified financial advisor
Benefits of Investment Plans
The major benefit of long-term investment plans is building wealth for the future without worrying about the uncertainties of life. At maturity, you would receive interest money as a return profit which you can use as financial security for yourself and your family. Some plans, such as life insurance, also provide death risk coverage options. So, in case any unfortunate incident happens to you, your loved ones will have financial security.
Apart from these two, there are plenty of benefits like the one mentioned below.
- It is the best option to create wealth for the future
- You can plan your savings to create a corpus and use it in your retirement life
- You get the flexibility to select the investment amount and duration of the investment
- Most investment plans also offer tax deduction benefits under Section 80C
Best Investment Plans For Middle Income Group
Given below is the list of the top long-term investment plans that can provide a good return to the middle-income group.
PPF – Public Provident Fund
PPF is one of the most popular investment options for the middle-income people who are employees at an organization. The maximum yearly amount you can invest in this scheme is INR 150,000, and the minimum amount is INR 500. There is a lock-in period of 15 years for PPF investment. It is the best investment option for long-term financial planning for employees.
ULIPS – Unit Linked Insurance Plans
ULIP is the only plan that provides dual benefits of insurance and investment within the same plan. The insurer invests your premium in hybrid funds, debt funds, bonds, and other market securities. And they also provide life insurance cover to an investor.
Bank Fixed Deposits
It is the safest and most secure investment option used for a long time. You can select the duration of investment while purchasing a fixed deposit. And at maturity, you will get your invested money with the interest amount.
Stock Market Investment
This scheme is especially for high-risk takers who have an appetite for risk to get higher returns on investments. By investing in the right products, you can even double your investment. Even though it has several risks, it is still one of the most favored investment types.
NPS – National Pension scheme
It is one of the best government investment schemes which offers a retirement solution when you reach the age of 60 years. You do not need to have an employer for this scheme, as seen in PPFs. No matter when you invest, you can only withdraw the funds in an NPS account after you turn 60.
Conclusion
These long-term investment plans are more than enough to provide the middle-income group with better return rates than the inflation rates. So they can grow their savings without the fear of depreciation over time. But the best way to invest money with assured returns and capital protection is through life insurance plans, especially Bharti AXA Life Insurance plans. These plans come at competitive premiums but can still provide a higher assured sum. So look into these amazing plans from Bharti AXA Life Insurance and invest in them right away to increase the savings from your income.
