Choosing The Best Investment Plans For You

"Becoming wealthy is not a matter of how much you earn, who your parents are, or what you do.. it is a matter of managing your money properly." - Noel Whittaker

Creating an investment plan can be a tricky but rewarding experience. The key to having a solid and fully customized plan is to know what your financial goals are and make sure your plan fit your needs. Investment plans are extremely popular because many people, due to the unstable job market and insufficient social security, are trying to save for their retirement. Investment plans help investors buy a set number of stocks, bonds, and funds at regular intervals. This occurs automatically and does not require the investor's constant attention. If you are interested in an investment plan below is some basic information and helpful tips about investment plans and how to choose the one that best fits your needs.

How does it work? Investment plans automate the investment process. Initially the investor picks out stocks which they want to regularly invest in. Then money is automatically removed from one of your financial accounts (checking, savings, or money market) and stocks are purchase for you by the investment plan coordinator. As the investor you can make adjustments to how much money, how often, and what type of stocks will be purchased. Most brokerages, which offer investment plans, allow you to make changes at a small fee. However, one of the benefits of online investment firms is that many of the traditional fee based options, like adjusting your financial plan, are free of charge.

How much? Deciding how much you should invest is never an easy question. Only you know your financial situation and how much you can afford to put toward an investment plan. It is important to not over invest only to leave yourself short in paying your monthly obligations. You need to make sure the money you choose to Best Investment Plans will be available at the same time each month in the same amount. Think about the future. Perhaps this month you have more disposable income available however, most months you do not. It is better to invest less and not run short at the end of the month.

Which investments are best? Choosing the best stock vehicles takes time and research. Be patient and really spend the time getting to know your options. Focus on stocks that have a successful history and have consistently shown growth. These may be more expensive, however they are also more secure. Remember the goal is to build your stock portfolio over time. Do not invest in companies you do not understand or you do not like. Investment plans are a great ways for the average investor to slowly build their stock portfolio and eventually find financial freedom.

Source: http://ezinearticles.com/?Choosing-The-Best-Investment-For-You&id=325624    

Investment Planning - How to Create a Sound Investment Plan?

Investment Planning is one of the important aspects of Financial Planning. The probability of achieving your financial goals depends on how well you plan your investments.

What is Investment Planning?

Investment Planning is the process of placing your monies/funds into proper investment vehicles based on your financial goals and the time frame to achieve them. How much risk you can afford to take is also an important point here.

We normally give more importance to RETURNS than goals. Example - You get a bonus of Rs 1 Lakh then the first question which may come to mind is - " Can I get 10% returns if this 1 lakh is invested in XYZ product?"

Rather it should be 'for which goal should I invest this Rs 1 Lakh?'

Investment Planning Process:

So, how should I plan the investments? Is there a better approach?

Identify your Financial Goals: These goals can be buying a house, planning for kid's higher education etc., You can sort them as High, Medium and Low priority goals.

Analyze how much risk you can afford : You're the best judge for yourself to decide on how much risk you can take on your investments. There are certain psychometric tests which can be used to measure your risk taking capacity. The risk profiles can be Aggressive, Medium and Conservative.

Identify time frame for your goals: You can divide the goals based on the duration as Short, Medium and Long term goals.

Identify financial products: Now based on the above points, identify the financial products which match your requirements.

Investment planning - Important points to ponder upon:

Dynamic process - Investment Plans and financial planning is a continuous process. This is not a one time event. Your goals and economic profile may keep changing. Accordingly, accommodate your investments.

Realistic - Try to set the goal amounts in a realistic way. Consider various factors like your future income growth, job stability, savings rate etc., The goals should be attainable.

Taxation - While identifying investment products, you may check if they are tax efficient or not. But do not buy them just to save taxes. Consider buying them only if they meet your requirements. Also, find out the tax adjusted returns for each product.

Re-balancing & Re-allocation - Not only your priorities change over a period of time but also the financial market conditions. Tweak your investment portfolios as per the changing conditions.

Tracking & Monitoring - Maintain a portfolio tracker to stay up to date on your investments' performance.

Diversification - Identify investments across the asset classes. Spread your risk. Do not invest in one product category only.

I believe that many of us chase only the returns and unnecessarily complicate the financial lives. Do not just chase returns but chase your Goals too.

Source: http://ezinearticles.com/?Investment-Planning---How-to-Create-a-Sound-Investment-Plan?&id=8683476

Choosing a Proper Investment Insurance Plan For Your Old Days

As one grows older, responsibilities increase and so do health risks. Finding the right insurance policy for 50s can also prove to be a challenge. The older you get, the more care you should take when picking these policies. With old age comes the risk of health problems. And the risk doesn't just stop here, slow recovery and additional charges while traveling can prove to be a holiday spoiler. For this purpose special over 50 insurance plans are one of the best policies you can invest in.

There are many different over 50 insurance plans available and you can chose the plan of your choice by thoroughly reading up the policy documents before you make the decision to invest in one. However the cost of insurance does increase at a higher age but the extra cost would be completely worth it as the policy offers a good level of cover. As well as including protection for many medical ailments including blindness, broken bones, hernias and hip replacements as standard, the over 50 insurance policy can be tailored for people with more serious conditions including diabetes, stroke, heart conditions and cancer following a simple medical screening process.

One important point is that travelers should remember that if they want to travel for more than 45 days on any one trip or have Pre-existing medical conditions, they must always check with their insurer before assuming they are covered. While it might require an additional "top-up'' payment, failing to deal with these issues in advance can lead to claims being refused. Many policies are single but there are also, partner insurance policies where both the partners are insured. Some insurance policies cover at home, work, traveling and even abroad and these cover any sort of injuries or diseases. But choosing the right over 50 insurance plan is very crucial. In this age of technology everything has been simplified and health problems can be easily treated but it is everyone's nightmare to be left impaired in some way after a health scare. The right Investment Insurance Plan would cover this in case of limitations in mobility or ability dues to an injury or disease.

So if you are worried about your health, and want to avoid the hassle of being in a situation where you are rendered helpless, then you must invest in an insurance plan. It is a smart decision at a crucial age of 50 and is sure to give you peace of mind.

Source:  http://ezinearticles.com/?Choosing-a-Proper-Insurance-Plan-For-Your-Old-Days&id=6824415

Is Life Insurance Investment insurance?

Life insurance is often considered to be a kind of investment that one makes for his future and in order to safeguard one's family's future. It is not exactly an investment but quite close to it. It helps provide a security to your family and saves them from financial crisis at the time of your death.

In the simplest form, a life insurance policy is a contract between the insured and the insurance company under which the latter promises to an assured sum to the nominee of the policy. The nominee is the person who receives the insured amount upon the death of the insured person. Thus it is an investment towards one's life and toward his family's future. The insured person may not be able to enjoy the benefits of the investment but his family does and thus it is considered to be beneficial.

In most of the life insurance policy, the insured amount is realized on the death of the insured person only. But nowadays there are certain flexible insurance policies which works like investment as well. For instance the endowment life insurance policies have a predefined maturity date and the insured party can invest in them to increase their capital.

In case of an endowment policy, the policy holder needs to pay a higher premium for a fixed tenure, decided under the contract. Interest is added to the capital amount under this policy which can then be released one the policy matures. These types of policies allow you to withdraw the amount before time and thus you can rely on them during financial crisis.

Similarly there are participating life insurance policies also which work as investment. Under this policy, the premium paid by the insurer is paid to the insurance company which further invests it. When the insurance company earns any profit on those investments then the insured person also receives the benefit. The profit is shared with the insured person whose money has been invested by the company. Even if the company does not make any profit, a minimum insured amount is paid to the insured party upon the maturity of the policy.

These participating policies are generally offered by mutual life insurance companies.

These companies use the premium paid by the insured party and then use them as collective investment that is invested in mutual funds. The returns from the investment depend on market condition and various factors therefore it is essential to choose the right company. The company might invest the amount in properties or other investment plans and when they get profits on these investments, it is equally divided among all the policy holders of the company.

If you are opting for participating policies then you need to consider certain factors like past performance of the insurance company, financial strength of the insurance company, returns in the past, contract period and other such factors.

Similarly you can invest in insurance bonds also which are basically meant for investments. It has a single premium similar to an investment plan. In other words, you need to make the payment once only and enjoy the interest on it.

If you are searching for life insurance policy that acts as bond then you can opt for investment bonds. Under this you need to pay one premium only and can enjoy the investment. Investing in these insurance bonds and other life insurance policies is beneficial otherwise as well. It helps you save your taxes and secure your future.

If you wish to invest towards your future then you can opt for pension plans that are offered by some of the life insurance companies. Under this you would be required to buy a policy and pay a small premium regularly till you retire. Once you have retired, you can enjoy regular income in the form of the pension that you would get from the life insurance company. This way you would not have to depend on anyone and can invest towards a better future for yourself.

These types of investment insurance  policies are gaining a lot of popularity these days as they allow you and your family to have a better future. However, not all types of life insurance policies can be considered as investments. Thus if you wish to buy a life insurance policy then you need to first choose the kind of policy you need.

If you wish to increase your capital then you can invest in the investment policies which would allow you to enjoy the profits and dividends. But if you wish to provide protection to your near and dear ones upon your death then you can choose to buy the protection policy. Under the latter, the assured amount is paid to the nominee mentioned in the policy, when the policy owner dies.

The dividends and the profit you receive in case of an investment policy also depends upon the kind of policy you choose. Some of the investment policies pay you a fixed interest rate, while there are other policies wherein the amount of returns you get fluctuate according to the profit made by the company.

So it depends on you to choose the kind of policy you need. In case of the investment policy you may have to face risks as it depends on the market condition.

Source:  http://ezinearticles.com/?Is-Life-Insurance-an-Investment?&id=2326702    

Systematic Investment Plan - Providing a Wholesome Investing Solution

Have you ever given a thought on how you are saving or investing your money? I believe not! We all follow a monotonous schedule. We earn, spend and save some part of our earning. As far as, saving is concerned we never scrutinize all the alternatives that could be taken into consideration before investing. The whole mutual fund industry had worked on mouth publicity until a few years back. But, now the picture is changing. With the onset of technology in almost every field, the clients are becoming alert like never before. So, why leave the mutual fund industry untouched?

An impressive revamp called Systematic Investment Plan (SIP) has bred a new life in the sector. It amasses three different words namely, Systematic, Investment and Plan.

Systematic, meaning a consistent process. Anything which is endured over a long period through gradual but a fixed pattern.

Investment is a strategy of making money out of money. In short, it is a process of nurturing wealth.

A plan is generally an idea or a method of carrying out anything via proper channel. The universal design of a SIP includes deducting a particular amount from the account of the payee at a frequency as set by the investor, depending upon the type of SIP opted. This business carries on for a quantum of years and then the invested sum is returned to the client with interest as corpus.

Types of Systematic Investment Plan:

There are variegated Systematic Investment Plans available to befit the desideratum of divergent clientele base. They are as follows:

Monthly Systematic Investment Plan: It is the most popular type opted by the clients. As the name suggests, Monthly scheme allows you to invest your money on a monthly basis. Every month, the amount is deducted from your account. The amount can be any sum of currency depending on your budget and your investment strategy. The monthly scheme inseminates the habit of regular and planned investment in the investors. This form of SIP is uncomplicated. Bulk investors are attracted towards this scheme owing to its flexibility and progressiveness.

Daily Systematic Investment Plan: Have you ever heard of the phrase "Digging the well each day and quenching the thirst"? This phrase fits here rightly. The investors opting for daily scheme are the ones who plan their income-expenditure cycle on a daily basis. These clients believe in filling the pot drop by drop. Very steady and slow form of investment, Daily SIP is quite secured at the same time.

Flexi Systematic Investment Plan: Businessmen and professionals who frequently switch their jobs need a plan where they can invest as and when they want. A scheme which gives them the desired freedom is called Flexi SIP. The Flexi SIP is an investment plan in which the investor can put in an inconsistent amount at different time intervals. There is no restriction either on the money or on time at which the SIP installment is paid. Hence, if the client has excess money in some month, he can put it in the SIP.

All the types of Systematic Investment Plans are exceptionally progressive. It solely depends on the client and his investment beliefs, which define his/her strategy of investing.

The author has specialized in writing articles related to business and investments. He has a good experience in providing advice related to SIP. All articles will definitely help you in understanding mutual funds investment and clear your doubts related to the same.

[ Source : http://investment-insurance-plan.weebly.com/investment-insurance---blogs/-systematic-investment-plan-providing-a-wholesome-investing-solution ]

Avoiding Some Common Best Investment Plan errors

Money needs to be invested somewhere and not just saved. And however smart one may be, but there are few common mistakes that most of us do while investing. And avoiding them can be a great help to achieve our financial goals.

Set goals: Most common mistake that we do is that we just invest without any purpose. First sit down and think what the long term financial goals of your life are and how much money you will require for each of your goal.

Inflation: Some of us may have lay down goals of our lives but often forget to think impact that inflation is going to have on our long term investments. Hence, while deciding what amount you will require for achieving your financial goals do factor in inflation.

Diversification: People often like one asset class and put all their savings in that particular asset class. However, different asset classes perform at different point of time hence, your investments should be spread out in different asset classes.

Review: We often invest for long term and forget it. But this is not the way; one should keep track of one’s investments and keep reviewing it on regular intervals.

Unique plan: We usually follow others. But what may be right for others may not work for you. The financial situation of every individual is dynamic in nature. Every individual have different needs, goals, income levels, risk appetite hence, every one should have tailor-made investment plan and invest accordingly.

Start early: When one is young, usually holdup their Best Investment Plan thinking they have sufficient time to start investing. But there is other way, the sooner you start, the less you have to save every month to reach your financial goals.

Understanding your investments: We often invest in products just because someone has recommended to us, without thinking whether it will be helpful in achieving our financial goals. Hence, before investing in anything, make sure that you understand it thoroughly.

Learn from your mistakes: Each one of us make some mistakes in your financial decisions. But it is important that we learn to accept our past financial mistakes and ensure that we correct them and don’t repeat them.

Patience: We generally lack patience when it comes about our investments. But some investments are best only when held for long term.

Combination of financial products: Every financial product is meant for different purpose and your portfolio must have perfect combination of them. Hence, before investing, understand which product will help in achieving your which financial goal.

You should give enough time to create your investment plan and stick to it. Making your investment plan with fewer errors will make sure that you reap maximum benefits from your investments. 

Source: (https://www.policymantra.com/blog/avoiding-some-common-investment-errors/)

Investment Plan

Click here  https://www.bajajallianzlife.com/investment-plans/investment-insurance-plans.jsp For more details Investment plans offer not only life insurance cover but also a growth of your investments to help you achieve your financial goals.

Knowledge about Investment Insurance.

People spend their whole lives working hard for their family and loved ones. Holding on their professional life and creating a valve of greater professional goals helps people to establish a strong financial excellence. People tend to believe in investing their finances into something which is more beneficial and helps in sustaining financially secure future. Investments are broadly defined as abstracts like, time, energy, or matter which is spent for creating a hope of futuristic based benefits.

These benefits are expected to be acquired within a specific date or time. For many people investments can have different meanings depending upon their personal beliefs. In finance, Investments are defined as a process of putting money into creation of assets with a positive expectation of capital appreciation, dividends and earnings. Insurance in Modern days is considered to be the best option for futuristic benefits.

Investment insurance plans basically aim for target audience which understand the market risks and want to insure the investments that they own. Insurance not only provides them with safety coverage of their investments but also helps in providing tax exemptions on investments. INVESTMENT-PLAN Therefore making them a tax free investment. Investment Insurance for beginners is much easier than at the later stage. For beginners the rate of premium is much more less than at the latter stage. In case of occurrence of death of the insurance holder the benefits are given to the nominee chosen by the insurance holder. An investment insurance plan has a specific time frame till which an insurance holder needs to pay premiums.

This Time frame is selected by the insurance buyer at the time of buying the policy. Ulip Plan or Unit Linked Plan is defined as a combination of insurance as well as investments. The premium paid by the policy holder is utilized by the insurance provider to provide insurance cover back to the policy holder whereas the rest of portion is invested in various equity and debt schemes. Unit linked policy holders are given features like top up facilities along with an option of switching funds during the tenure of the policy.

Source: https://www.policyx.com/blogs/tax-exemption-makes-insurance-profitable-investment/   

How Can Life Insurance Prove Useful While In Returns?

The primary objective of buying life insurance is to get coverage against unforeseen risks. But that is not enough. Many of you may be thinking that life insurance is such a wasteful expenditure if in case it does not get utilized anytime sooner. But is that so?

The insurance industry in India is getting matured and there are several ways through which you can use insurance as an investment instrument which is able to generate handsome returns for you in the long run.

Traditional life insurance policies do provide returns. However, the rate of return is quite conservative and equal to returns provided by government securities and other debt instruments.

If you are expecting better returns, you have to take some risks. Unit Linked Insurance Plans (ULIPs) are the potential options to you. The insurance policies issued under such mode are issued as units just like mutual funds. A certain part of these units are invested in the stock market. The proportion of investment in stock market and other securities is pre-determined and approved by you.

The risk is that in the short term, stock markets may not appear to perform well and thus you may get dissatisfied with the results. Here you have to understand that stock market investing is about the long term. You have to have some patience and keep a horizon of at least five years.

It is advisable to not look at the net asset value (NAV) of your units more frequently. It is good to keep track of what is happening with your investment. At the same time, you shall set your goals with long term perspective and then do not get nervous when things look volatile. If you really get uncomfortable with the volatility and uncertainty linked with stock market investing, then you may reduce your exposure in congruence with the insurance service providing company.

Apart from better returns in the long term, ULIPs also come up with another way of generating returns – this is rather an indirect way. Under the Income Tax Act, ULIPs are eligible for exemption. An amount of up to Rs 1 lakh could be claimed for exemption by submitting the proof of investment in ULIPs.

Therefore, if you have invested Rs 1 lakh in ULIPs in a year, and for example, you come under the income tax bracket of 20 per cent, then you will end up saving tax of as much as Rs 20,000 in a year, directly. You may say that you were able to generate assured annual returns of 20 per cent right at the beginning. Thereafter, whatever returns are pumped out from the investment, it is an extra over that 20 per cent. Isn’t it a great deal?

Think about the fact of Best Investment Plans  rather than following primitive methods of saving. An investment can be termed as useful and productive only if it promises to deliver timely returns to the highest level. People who tend to become insured are the ones who have maximum financial security in terms of futuristic goals and are usually safeguarded against the financial odds which may hamper the growth. Buying insurance policy can ensure the future well being of you and your loved ones. The right plan which suits the need and preference is very important to look out for. Rather than going around asking various experts about the same, isn’t it better to become an expert yourself. Comparing insurance plans online can give you a detailed report of terms and policies of an insurance policy and that too in less than a minute. Isn’t it a value for time and money? Policyx.com is one such website which helps in providing a brief understanding of insurance plans and their terms. Be assured while investing, after all no one wants to take a wrong step.

What To Do With Your Money

People are usually confused whether to save their money or invest it. And often their financial plan is skewed towards either of them. Saving and investing, both have their advantages and disadvantages. And an appropriate combination of both of them is needed to make a perfect financial plan.

Hence, firstly, it is necessary to understand what it is the difference between saving and investing.

Saving is putting money aside especially into cash products such as putting money in a bank account and investing means to put your money in financial products that allows to grow your money. Here are few things to remember when and how much to save or invest.

For short term goals you can save and for long term goals you can invest. Short term goals are those goals that you are planning to do in next five years. And long term goals are once where you won’t need the money for 10 years and more.

Investment provides higher returns but are bit illiquid and come with little risk. But just saving your money may not be enough to fulfill all your future requirements. As putting money in bank account may not come with risk but it gives low returns. Hence, for long term goals you need to invest so that you can reach your financial goals faster. To enhance the earning capacity of money, you need to invest.

For short term goals don’t invest in risky assets such as stock markets as it may go up or down in short term. For short term goals you can save in bank account. The funds that are required immediately and for emergencies should be held in bank accounts.

As an emergency fund, the thumb rule says that you have at least three months of your regular expenses in your savings bank account so that you can have easy access to it.

For long term goals, it is often best to invest because inflation can affect the value of cash savings over the medium and long term. The stock market usually tends to do better than cash over time. You can start investing as early as possible. You can set your financial goal that is few years away such as your child’s higher education or marriage and assess how much amount you will require to achieve that goal, factoring in inflation, and invest accordingly.

Remember to keep a track of your Best Investment Plan in regular intervals and if required make suitable changes.

Need of Investment for Salaried Person

It is true that money plays a vital role in our life, but how to handle it properly is more important. Basically, an investment for salaried person is a tool for creating wealth and fulfilling future needs as well. It allows you to meet your life goals easily with the help of careful management of money and finances. It is observed that managing money wisely is the first step towards better investment goals.

Expense management is a matter of getting the appropriate returns for every rupee spent and suitable decisions on the payment mode that is cash, cheque, credit card or equated monthly installments (EMIs). For a salaried person, financial planning is a critical thing. The reason behind the same is the limited and fixed flow of income. For a perfect financial independence a person has to be proactive in taking steps for the same. It is necessary to understand the saving and spending patterns before making an investment. A person has to fill the gaps by spending prudently for the purpose of consumption and saving. One of the major advantages of a salaried person in the regular flow of income. It can be used as a tool for systematic investments for the achievement of financial goals. Another advantage for salaried person is the risk coverage that is offered by employers which may include life insurance and health insurance. However, it is recommended that one has his own personal insurance cover rather than depending only on risk covers offered by employers as the contract of risk cover would stop when the employment contract comes to an end. 

Reasons To Invest 

Financial Security: Financial security relies on how much a person invest and how efficiently he/she did so. Investments would help in building a corpus that assists in generating a large cash reserve. It helps in providing a financial security to the family.

Prepared For Emergencies:  A medical emergency can cause a financial crisis. An unforeseen medical emergency can disturb you financially and mentally as well. Investment helps you in creating a financial cushion for your family. It will help you in dealing with all the unwanted situations that can leave a bad impact on your financial and emotional status.

Assists in Achieving Financial Goals: includes purchasing a house, car, marriage or something that requires lots of funds.  It is really hard to fulfill all the financial goals in today’s world where the expenses are more than income. With the help of a goal oriented investment plan, you can achieve your financial goals easily.

Wealth Creation: In order to create wealth you require Best Investment Plan options that act as a factor of growth to your money. There are several options that assist you in building your wealth over an investment horizon.

Inflation: Inflation ruins your savings completely. With every passing year, prices  keeps on increasing. Investments assist you in protecting your capital against price rise. A good way to beat inflation is to invest your money efficiently in an option that provides good returns that are higher than the rate of inflation.

Best Investment Plan

Do You Really Know That Insurance Is A Smart Investment?

Money lying idle in your bank account is not going to grow by itself and you need to make smart investments so that you can not only safeguard your present, but also your future! While investing in mutual funds, fixed deposits, and real estate is a good idea, investing your hard earned money in insurance can be one of the wisest decisions you will ever take! Most of us tend to believe that bad things happen to others, financial constraints and emergencies are faced by others and life will go on forever! However, such misconceptions cloud our judgment for rational decisions to be taken when facing the uncertainty of life! Therefore it is important to understand why insurance is so important for us.

Let’s bring to you the top most reasons for the same:

1) Income:

Many of us are the sole bread-winners in our family. In case of an unfortunate event of a life-altering accident or untimely death, the dependents have to face the hardship of surviving without having any financial support. However, if there is an investment made in insurance, it provides a buffer against such financial hardships. Not only does it provide a lump-sum amount at the time of death, in case of accidents or any disease leading to hospitalization, it also helps to take care of the entire medical costs. Also, under certain insurance plans, one gets their income replaced under annuity payments after retirement. All in all, a beneficial deal for the insured as well as for their family members.

2) Perfect Investment:

There are a lot of insurance products available in the market offered by various companies. For example insurance plans like whole life plans, pension plans, guaranteed income plan and growth plans are those that offer the insured not only an assured growth in the invested premium amount, but also provide insurance cover against death. This means that if the insured lives till the completion of the policy period, he/she will get an assured growth in the premium amount paid. And in case the insured unfortunately dies before the period is over, his/her nominee would get the complete insurance cover along with other benefits if mentioned in the policy! In other words, while being alive and even after death, insurance is there to help you grow your money and provide healthy returns on your investment, not only to you, but also to your near and dear ones!

3) Loans:

After the liberalisation of 90’s, more and more people are living under the burden of loans. While you’re earning and able to pay your monthly instalments, it is all good. However, in the case of an unfortunate death, all that debt becomes responsibility of the dependants and family members. This becomes an extremely delicate situation, especially if there are children and elderly in the family who can’t earn and pay back the debts. In such a scenario, if a substantial amount of insurance cover has been taken, it comes as a real help so that one is freed from the loans repayment and can focus on moving on with life

without any financial liabilities. Also, an insurance policy can be kept as collateral in case of taking a home loan. It’s kind of a double benefit. Not only can you buy your dream home, you can also safeguard its loan with your insurance policy in case of any unfortunate event!

4) Tax Benefits:

This is one of the most obvious benefits of insurance and most people who buy it are told only about this positive aspect of investing in an insurance policy. As per the income tax rules, an investment insurance policy can help you get tax rebates under Sec 80C and Sec 80D. This way, not only you get insurance benefits, but you also save money for investing in it that can be used for better purposes!

Therefore it absolutely makes for a brilliant decision to ensure that you invest your money in a range of financial tools, especially insurance as it takes care of your life, while you are alive and even in the unfortunate scenario of your death! This would mean that you value your life as well as the life of your family members who should not face any financial hardships at least in your absence!

The best thing to do right away is to pen down your financial priorities and then search for the best insurance plan that meets your requirements and then go ahead and buy it!

This is the right time, the right moment to take the right decision!

Investment Insurance Policy

Investment Insurance policy cum investment insurance plans which helps you secure your families future and see your investments grow steadily. For more details click here : https://www.bajajallianzlife.com/investment-plans/investment-insurance-plans.jsp

Ways to Maximize your Best Investment Plan Returns.

Making money is not enough if you have no idea how to invest it wisely. A smart man always makes sure to be fully prepared for future financial needs and at every step and finds out a way to double his hard earned money. However, the biggest mystery is how and where to invest? Your financial planning will only be successful if you have bit of knowledge about investment planning options. So, if you are seeking some advice to get the best returns on your investment, your search ends here.

Before exploring the options available in the market for financial planning, let’s talk about the types of investment plans. Basically, these are of two types-

ULIP (Unit Linked Investment Planning) – Here, your premium is invested in various kinds of funds such as stocks, shares, etc and you receive money on the basis of the performance of these funds. Thus, it is volatile in nature.

Traditional Investment- It ensures you receive the promised return amount after the maturity and thus is a low-risk investment plan.

Options Available For Financial Planning

Child Plan– When it comes to planning for a stable future, people should never ignore child insurance. This plan is one of the best investments to ensure that your child’s needs (education, wedding etc) can be fulfilled.

Retirement Plan– You earn all your life in a hope to enjoy your later years in peace and joy. But, how’s that possible if you have no money? Thus, investing for your retirement can give you benefits and a strong financial support to rely on.

Guaranteed Return Plan– In the market, there are many plans that give you guaranteed return after specified period. It is best for people who can’t afford to take high risk and want a stable source of income.

High Potential Plan– If you have money and love to live on the edge, this investment plan is the one for you. It is volatile in nature and gives a scope of high return, but only if you are ready to take risks. Here, your premiums are invested in funds and the return depends on the performance of the funds.

Beside these, one can also invest in gold or fixed deposit in bank. These investments can be short-term as well as long-term depending how exactly a person invests.

Risk Involved in Investment Plans

Investment also brings risk along with it. If you invest, be sure, you might have to face some trouble. Few of these risks are as follows-

Unstable market- One can never predict the future. Thus, if the market will go down so will your investment with high chance of you losing your money.

Inflation- Sometimes due to inflation you might not get as much return as you expected. If the inflation rises the value of currency decreases.

No benefit if policy collapse- If the policy collapse before the maturity period, you might not get any returns and might face loss.

How to Select the Investment Plan?

There are so many investment plans available in the market such that it becomes difficult to choose which one is right for you. Every plan has its own pros and cons and will suit people depending on their

Requirements . So before you select any plan, ask these questions-

What are your final goals? Do you want to invest for your post retirement days or you want to secure for your child or simply want to double your money?

Do you want to invest for short-term or for long-term? If you have short term goals go for term plans and if your requirement is for a long period, then go for 10-30 year plans.

How much risk you can afford? If you have money or are young, go for ULIP plans as they give high-return, but being volatile in nature also involves high risk. Similarly, if you are old or financially weak, go for conventional plans as low-risk is involved with stable return.

Anybody can invest, but what makes a successful investor different from the not so successful one is how wisely he/she invests. Best Investment Plan is a long term aspect and careful considerations should be made before choosing nay mode of investment as it will have a direct effect on your finances.

Life insurance is favorite investment class among urban Indians; says survey

Survey of Nielsen on life insurance sector and investment pattern a Life 2011 in its findings has found that life insurance products are the most favorite investment class among urban Indians and they are even ready to invest half of their investable income in life insurance products.

As per the survey about 60% urban populations have life insurance policies.

Study has said that in last two years urban Indians have become risk averse hence they have shifted their focus from risky asset classes such as equities to more safer option such as life insurance; which not only gives tax benefits but it is also have limited risk.

Primary reason which influences urban Indian s investment decision is return then fear of unseen future and then childs education.

Survey also said that young population which is entering work force at high salaries can prove to be the big opportunity for insurers as they account for one-fifth of the population and most of them do not have life insurance but they are eager to invest in it as life insurance has historic acceptance as safe investment and added tax benefit.

To increase the coverage 16% life insurance holders are ready to buy another policy in coming six months. Hence there is an opportunity for life insurers to promote dual life insurance ownership.

According to the survey Indians are not still open to purchase Investment Insurance online.

8 Best High Return Investment Plans - What Gives More

There are many investment plans which offer high return on your money. Selecting a best plan will ensure higher return with minimum risks. Here is a list of options which yields more on your money. Your future depends on your savings and asset management skills. Your portfolio should ensure you high yield from your hard earned money at time of your expectation.

Nobody wants to loose their money putting in wrong place. You should do a thorough study before investing money or deciding where to invest. The rate of returns from your money is directly related to risk you are willing to take. You should optimize your risk and find out which is the best investment plan for you. Your money management plan should ensure high yield with minimum risk involved.

Stock market

Investing in stock market requires a lot of attentiveness, experience and skill along with risk bearing capacity. Stock market can prove to be very lucrative or also not be up to snuff based on your attentiveness on market fluctuations and how you act upon them. Fundamental and technical analysis will reduce the chances of loss. You should research well the history and future prospects of companies before investing on their shares. Foreign and information technology industry yields higher returns compared to other industries but risk involved in these shares is also very high. If you are conservative on your money, invest in gradually growing industries like PSUs, Oil and gas industries etc. Learn Tips and Tricks for Stock Market investment before putting your money on stocks.

Investing in Gold

Gold is known to be safe heaven for investment since history. There are many of options for gold investment like, buying jewels, coins, gold bars, gold exchange traded funds, world gold council coins etc. Gold will yield higher returns on your investments if you buy at lower prices and sell at higher. Investing in gold will be advised when the markets are falling and when inflation is high. Gold is less risky compared to stocks. Gold can be considered as best way to invest money as a long term investment. Article Tips and Tricks for Gold Investment will gives you much more information on different gold investment plans.

Real Estate

Initial investment on real estate is much higher compared to other money management options. Investing money on properties proves to be more beneficial on a long term. Risk involved in properties is very less compared to other options. Price of land generally doesn’t decline and grows exponentially depending on locality. It is more rewarding than in any other investment options. Before buying properties check market price and future development expectations in that locality. Check and verify authenticity of all original documents before signing any agreements.

Security Bonds

Security bonds are another best investment plans. These bonds are issued by governments, government agencies or by a private corporate. You can get back your money after maturity period completes. You will also get interest which is paid monthly or yearly. Interest rate depends on maturity period and money you invested. No risk involved in security bonds unless the corporate declares bankruptcy. Do your researches before you select security bond.

Mutual Funds

There are varieties of mutual fund schemes available in market which suits all types of investors. It is similar to stock investment but risk involved is less since it is a collective investment scheme. The money is invested in diversified capital market instruments such as equity shares, debentures and other securities by Asset Management Companies (AMC). Mutual Funds are most appropriate investment plans for common man, where he can just put his money and portfolio allocations are done by AMC.

Investment on own business

If you are running your own small business, invest your money to uplift your business. You can also think of starting a new small business which you like. This is one of the best way to invest money if you have any interest on running an own business. You can enjoy all profits you get from your business at the same time business risks are also more. Do a basic research on demand and supply before setting up a business.

Insurance plans

If you are running your own small business, invest your money to uplift your business. You can also think of starting a new small business which you like. This is one of the best way to invest money if you have any interest on running an own business. You can enjoy all profits you get from your business at the same time business risks are also more. Do a basic research on demand and supply before setting up a business.

Investment in Banks and Post Office

Banks provide different savings schemes like fixed term deposit, recurring deposit etc. You will be having premature withdrawal options in some schemes. Returns from these investments are less compare to other investment options but risk is totally zero. Select fixed term deposit or high interest savings accounts.

There are many other best investment plan and money saving plans available. Each of the option listed above may not be suitable for all type of investors. Select best plans suitable to you and diversify your investments in them.

Source: http://www.collegesavingsplans.info/article/298166254/best-investment-plan/

Saving Tax and creating Wealth too !

The end of FY06 is arriving and most of the companies have issued timelines for employees to submit proof of Investment done for tax saving purposes. Most of us really do not really plan our tax saving avenues in a manner we think of our other Investments. It’s more of saving the taxes rather than utilizing the same money to generate higher returns.

Let’s talk briefly of the various avenues available for tax savings and find out where one should invest his or her money to get best of both worlds.

The enabling Section 80 C

One nice thing about the last finance bill was the removal of restrictions from upper limits of various investing avenues and freedom was given to invest in the eligible avenues subject to overall limit of Rs 100,000.

So, from the avenues given below, a tax payer can choose to invest in any avenue subject to a maximum investment of Rs. 100,000 to get deduction under Sec 80 C.

Avenues for Investment under Sec.80C

1. Contribution to Provident Fund

2. Repayment of Principal amount on Housing Loan

3. Payment of tution fee

4. Investment in PPF

5. Payment of Life Insurance Premium

6. Investment in NSC

7. Investment in Tax saving FD’s

8. Investment in Infrastructure development funds

9. Investment in Equity Linked Saving Schemes

Out of the above, Contribution to Provident fund is something in which most of us are already investing (deducted by employer) monthly. So out of the Rs.100,000, reduce the amount that would be deducted by the employer on account of your portion of contribution to Provident fund.

For those of us, who have school going children, Payment of tution fee is also considered for Sec. 80 C benefit.  Life Insurance and Tax savings

As far as life insurance is concerned, endowment plans (money back plans) have been a popular source of investing. However, ULIP’s have taken a center stage now since they offer insurance as well as market related returns in a single product. However, investors should understand the underlying structure of ULIP carefully since these offerings have a substantial charge towards expense in the initial years and is advisable only for investors with a large investing horizon.

Another avenue within insurance domain is Pension plans. Pension plans have got a boost in last finance bill with the overall limit raised from Rs. 10,000 to Rs. 100,000.

Let me disclose one thing here. I am biased towards other investing options as compared to Life Insurance products since I believe that insurance and investments should be taken separately. So while investing don’t think of insurance and while insuring yourself don’t think how much return you would generate from the Investment In India in insurance. As far as insurance needs are concerned I believe in pure risk plans which cover your insuring needs at an affordable premium. However, these are my personal views and each one of you has a right to differ from this.

Role of Life Insurance Companies in Wealth Creation

It’s usually misunderstood that life insurance is only meant for protection, but be warned, it is also cost-effective for wealth creation. Life Insurance products play the following role in wealth creation:

Protection on the savings: Life insurance products cover risks in the event of death, critical illness or accident in the savings products. When a person decides to create wealth through a life insurance plan, he/she buys a cover on the savings that has the effect of paying out the amount he/she is not able to save due to the happening of the insured event (death, critical illness or accident).

Regular savings: Life insurance premium have to be paid regularly and on time. Once a person commits to wealth creation through a life insurance plan, he/she commits to regular payments that has the effect of paying oneself first and helps in wealth creation.

Availability of emergency fund: Most life insurance plans in the wealth creation category offer policy loans or allow withdrawals after the initial years. The loans are available at reasonable rate of interest and procedure for availing the loan is simple. This has the effect of making available funds in the event of an emergency.

Protection of assets: Life insurance savings contracts offer riders such as term rider, critical illness benefit rider, accident benefit rider, which provide additional protection over and above the inbuilt protection of the savings. The money paid out on the rider in the event of an eventuality can help protect the asset created by the plan and help in the process of wealth creation.

The following types of wealth creation plans are issued by insurance companies.

Conventional ‘with profit’ plans: These plans help the client to build savings under the conventional ‘with profit’ platform. The policy is issued with a sum assured and reversionary bonuses are attached to the policy on declaration (post actuarial valuation). The policies have a provision for payment of terminal bonus at maturity or death in case the same is declared by the company. The sum assured together with the bonuses can protect the savings by paying out lump sum benefit on death or maturity whichever happens earlier. Riders can be attached to these plans to include additional protection of the savings.

Unit linked plans: As the name suggests, these plans help the client to build savings by investing in one or more unit-linked funds. The client has the option to choose the cover he wants along with the savings. In the event of death during the term, the policy fund together with the cover amount is paid to the beneficiary. Some plans provide for payment of policy fund or the cover amount whichever is higher in the event of death during the term of the contract. The client can choose cover against death, critical illness or accident under the plans and charges are made to the policy fund to provide the cover chosen. These plans also provide investors the option to invest in funds with maximum exposure to equity to minimum exposure to equity depending on their risk appetite.

Protection Plans: These plans provide pure protection by providing a fixed or a decreasing cover, which can be availed by the client when he chooses to build his savings through instruments offered outside insurance. The wonderful feature of these Investment In India is that one can protect dreams for creating wealth even before savings have already started.

Life Insurance policies do not only help an individual to create wealth, but also help him to protect wealth. Life Insurance also has the capacity to create and protect his dream of creating wealth in the future. Financial consultants can learn about the dreams of their clients and offer good advice to them by adopting the need-based selling approach.

Budget 2016: Basic imperative is to step up investment

Should the government defer fiscal consolidation further or stick to its schedule and compress the fiscal deficit to 3.5% of GDP in the forthcoming Budget? Even the framing of the question in this manner makes assumptions that do not hold in the economy at present. ‘Fiscal consolidation’ comes across as a virtue, because its absence is normally associated with macroeconomic imbalance. But the current conditions are not normal. The world economy is in torpor. India’s internal investment story is not even sound and fury, if you leave aside some e-commerce firms. Credit grows at a snail’s pace. Spare capacity exists in most consumer goods sectors, obviating investment. Infrastructure investment is hostage to debt-crippled firms. The state sector has to act to boost investment. That is the basic macroeconomic imperative.

Why is a fiscal deficit not desirable in normal times? Because it makes a demand on private sector savings that competes with the private sector’s own demand to finance its investment, leading to excess demand that spills over as inflation and a wider current account deficit. In a situation in which the private sector’s own investment demand is tepid to cold, there is little danger of public borrowings competing with private borrowings for the same quantum of private savings. On the other hand, if state sector investment generates new demand, it could crowd in fresh private investment to meet that demand. In other words, a fiscal deficit that boosts investment at a time when the private sector is chary of investing is a virtue, not a sin.

This is not to say that the government should not try harder to cut back on wasteful subsidies, by employing direct benefit transfer wherever possible, or to raise additional resources by widening the tax base and administering taxes better. Nor should any effort be spared to get additional chunks of surplus global savings into the National Infrastructure Investment In India Fund that would invest in India’s infrastructure. India cannot allow rating agencies to dictate its policy priorities that is all.

Invest Your Hard Earned Money With Caution

Despite government’s several efforts to move household savings towards financial assets, people are not ready to make this transition. This is not because Indians are not financially savvy but they distrust financial market.

There are two parts of financial market –regulated and unregulated. The unregulated market mainly consists of ponzi schemes that make retail money disappear. While the risk of fraud and capital erosion is high in any unregulated market. But what about regulated market like life insurance, when insurance companies cheat people of their savings.

There have been several cases of mis-selling in life insurance where for hefty commissions insurance agents sell products that are not needed by the customer or they don’t tell them all the clauses of a plan. Insurance companies, too, deliberately phrase the real returns of a product in illustrations in such a manner that is not comprehendible by a Lehman. In the fine print of a policy there are also hidden clauses to dupe innocent policyholders.

Hence, if insurance plans are bought without an expert advice it can wipe of your hard-earned money. Investors get trapped into products that destroy value if held for the long term with 2-4% annual return. And if they choose to exit the policy within the lock-in period, they lose their entire investment. An insurance plan gives complete benefit only if it is held for complete tenure.

Insurance is the core of financial planning and you can’t stay away from it just because of such fears. It is advisable that you take expert advice before investing in an insurance plan. Experts at policy mantra make it easy for you by explaining you what to read in between the lines of all the clauses of an insurance plan. So that you can buy such an Best Investment Plan that you don’t have fear of losing your hard-earned money and get insurance plan that best suits your needs.

Comparison sites like policy mantra can help to ease this daunting task. They can help you not only to provide unbiased advice across all insurance companies but also assist you for renewals.

Do not invest in an insurance plan just because it is cheapest as it may have several conditions attached for the time of claim. 

Financial Awareness: A Pre-requisite for Financial Planning

Despite being smart, confident, stylish and multitasks, women are still dependent on the men in their lives — father, brother, husband — to direct their finances. According to HDFC Life Value Notes Life Freedom Index survey, 42% of urban women chalk out their financial plans with the help of their friends and relatives. But why would an educated, urban woman spin away from drafting her own financial plan?

No money matters, please!

According to financial experts, women believe they are incapable of managing their own finances. They also perceive finance to be a boring and difficult subject. However, this age-old tradition is now gradually changing.

Sarika Waje, 33, is a Global Knowledge Manager with a leading communication firm. She is the second wage earner in her family and is financially independent. “In today’s scenario, the standard of living is on the rise,” she says, adding, “It is very important to have a steady inflow of money coupled with sufficient savings. At present, most of my salary goes in paying-off my housing loan EMIs.”

When asked if she was exposed to sufficient financial knowledge, Sarika says, “I usually do my research but I also seek advice from my father and husband.”

Financially independent, but lack financial awareness

Urban women such as Sarika are becoming financially independent and have a higher sense of financial liberty. Lack of financial awareness will only lead to financial insecurity. A married urban woman is actively planning for her child’s education, health expenses and EMI payments. Her financial freedom also accords her the liberty to indulge in other luxuries such as family holidays and durables. The working single urban woman is ready to face the financial challenges of her life independently.

However, an urban woman is not completely financially free and needs improvement on aspects such as financial planning and financial discipline. But given her poor financial awareness, she is unable to review and realign her financial plan that can cover all her short-term and long-term financial goals.

Financial guidance

It’s time to get into the driver’s seat and get a larger perspective of the road Investment In India. For starters, professional financial advice will help in achieving a comprehensive term plan. As per the LFI survey, only 26% urban women seek professional help from financial planners.

If investment plans are not taken care of, financial goals could transform a dream into a nightmare in the form of financial insecurity and a bumpy retirement.

What are the key benefits of Endowment Plans

There are a host of insurance policies available – each for different needs and requirements of consumers. Endowment plans are a popular form of insurance that are risk-free and sought after by individuals who do not mind lower returns for a risk-free investment. In this article, we’ll discuss in further detail about how an endowment plan is different from a term plan, the key benefits of opting for an endowment plan, types of endowment plans, etc.

An endowment plan is a combination of insurance and investment. In case of a term insurance policy, there is no maturity benefit – i.e. in the event the person survives the policy tenure, the person does not receive a sum on completion of the tenure. In other words, if the person dies during the policy tenure, his dependent/nominee gets the monetary value or the sum assured. An endowment plan offers users the best of both worlds. Here, the person gets a sum assured on maturity. Also, in the event of the person’s unfortunate demise, the policyholder’s kin receive death benefit.

Broadly, there are two types of endowment policies – with profit and without profit. Within these two classes, there are several variations structured to meet different objectives of policyholders such as whole life protection, savings, pension, child’s education, etc.

The key benefits of an endowment plan are:

i. Goal-based savings: With endowment plans, policyholders are expected to set aside a pre-determined amount as premium at a stipulated time-interval. This calls for a disciplined approach to saving money.

ii. Tax Benefits: The plan offers Tax benefits under section 80 C and 10 (10D) of the Income Tax Act.

iii. Loan: In case of emergency, policyholders can obtain loan against the policy – usually without having to secure the loan against a collateral.

iv. Bonus: Endowment plans declare a bonus every year. The bonus is typically given out as a certain percentage of the sum assured.

While the insurer may announce a bonus at the completion of each year, the bonus declared is not payable immediately. Unlike in the case of stock dividend or a mutual fund dividend, which is payable immediately after it is declared, here the bonus accumulates and is payable only when the policy matures or in the event the policyholder dies. Also, it is important to note that the bonus does not compound or interest is not attracted to the bonus amount each year. The amount continues to accumulate each year for the entire policy term.

There are a variety of insurance plans available in the market today. Choosing an appropriate plan depends on several factors including your current investment/savings objectives, age, income, long term financial objectives, etc. Besides evaluating these aspects, you will have to factor in the following:

i. Premium Rates: The premium payout for endowment plans is far higher than that of term insurance. Therefore, one has to evaluate the premium payable carefully before going for a long term commitment.

 ii. Bonus Payment: Check the insurance company’s track record of bonus payments. For instance, if the insurer pays a bonus of Rs.50 for every thousand rupee in sum assured, then the bonus for a Rs.10 Lakh policy works out to Rs.50,000. This translates to a bonus of 5%. If the insurer continues to provide a 5% bonus each year, the policyholder will have Rs.20 Lakhs at the completion of 20 years – i.e. Rs.10 Lakhs as sum assured and Rs.10. Lakhs in accrued bonus.

 iii. Claim Settlement Ratio: In the event of the death of the policyholder mid-way during the policy tenure, the nominee will have to file for a claim. Therefore, in order to ensure that in the unfortunate event of demise of the policyholder, the nominee faces minimal chances of claims rejection, it is important to note the claims settlement ratio of the insurer.

 iv. Customer Service: Look for reviews, ratings and feedback of the insurer to understand if their customer service is prompt and forthright when needed the most.

 v. Financial Standing: Evaluate the financial standing, the reputation and number of years that the insurer has been in business.

Read your insurance document carefully before you commit – avoid policies with complex features that you find difficult to comprehend. Endowment plans might offer lower returns but they also offer the much needed peace of mind knowing that your Investment Insurance Policy and insurance needs are both addressed with a single plan.