How to plan the best for your family and future?

Money is a piece of paper which adds value to your life. These are the driving fuels of your life engine which has to be kept filling sufficiently so that the drive of your comfort and happy living won’t stop anywhere in this long journey.

Investing has different perspectives for different people. For some it’s an art, for some it's a rocket science and some like to gamble it in their way. The risk factors associated with investment holds different perception levels. But risk can be taken care of by being more aware and knowledgeable about the various options available in the market.

After considering your needs and goals, wisely choose the most suitable option that will not make your money go waste. People have different financial needs at different stages of life ranging from marriage, education, new car, business, retirement and so on. To fulfill these goals of life, one needs to invest in a systematic and long-term planning.

Life Insurance Policies:

One of the best and secured investment vehicles, life insurance provides you dual benefits of protection and investment. In the event of insured's death, the insurer offers a lump-sum amount to the beneficiaries, which is called death benefit. It is a very safe investment as it is strictly regulated by IRDA.

Types of Life Insurance Policies

A unit-link insurance plan is a product that provides dual benefit of insurance and investment to the consumers. ULIPS are exclusively meant for investors who are open to risk as they are market-linked. Some part of the premium paid is utilized to offer insurance cover to the policyholder while the remaining portion is invested in various equity and debt schemes.

Traditional plans

Traditional plans unlike ULIPS invest all the funds into debt. It has a longer tenure with annual premiums - often for 15 years or more. A small part of your premium goes into covering for your life and is called mortality charge. The rest is put into debt. The emphasis is on covering risk and keeping the corpus safe. There are three traditional plans term, whole life and endowment policies. Term insurance is the basic form of insurance as it provides risk cover in the exchange of yearly paid premiums. Whole Life Plans are the ones which typically run till the insured is alive, irrespective of the premium payment term. Endowment plans have decided tenure policy for a particular period say 15, 20, 25 or 30 years.

Mutual Funds & stocks:

Mutual funds are a best investment option for investors who are fascinated about shares, money market, debt securities or combination of these. It is an investment vehicle that pools the money of the investors and invests that money in different securities.

Equity Shares:

Shares in the course of the company's business are Equity shares. Investors are paid dividends out of the profits made by the company. The main benefits of equity shares are limited liability, potential for profit, hedge against inflation and free transferability.

Bonds:

Bonds hold a reliable bonding with your best investment plan strategy; however profits depend on the structure of the bond you purchase. They also provide a certain amount of liquidity as the market of bond is active and large. Bonds help to provide diversification in an investor's portfolio.

Bank Fixed Deposits:

All season best investment option Fixed deposit is one of the safest in which rate of interest is guaranteed for a fixed term. Customers can also take loans against this investment in case the rate of interest paid to the customer exceeds Rs 10,000 in a financial year. This investment is for those who want regular income.