Choosing the best investment plan in India depends on a lot of factors. Each individual has different financial goals and conditions which lend to the nature of the plan they choose. The Union Budget of 2016 has introduced tax exemption plans and policies to encourage more and more people to invest their money in various places. Here is a guide to help you choose the best investment plan for you:
Ø How much do you Plan to Invest?
The capital you have in hand will narrow down your investment options as well. If you have a lump sum to invest then you can look at options like fixed deposit, bonds, real estate etc.; if not you can go for investment plans like insurance, stocks, mutual funds etc. where you can pay in small amounts over a regular period of time.
Ø How Long do you want to Invest the Money for?
You can choose the best investment plan by drawing up a time period after which you will need access to the money you have invested. Some of the best investment plans for long term period are mutual funds, stocks etc. as these offer a good yield only in the longer run. So if you are looking at something to keep your money safe and access it in a couple of years, you can go for safe options like fixed deposits.
Ø Do you need an Income from your Investment?
Getting a regular income is one of the most common purposes why people invest money in various income yielding plans. You can opt for schemes such as corporate bonds, annuities or rent a property for regular income. If you are looking for income after retirement, then investing in pension plans is the best investment plan in India for the retired or soon retiring group of investors.
Ø Current Personal Circumstances
The investment plan you choose will also depend on your current personal circumstances. If you are a working individual who has kids or other family members dependent on you, it is advised to go for plans that fall in the low to medium risk category that offers more safety. Similarly, if you have just begun your career, you should opt for options that let you pay in smaller amounts over time.
Ø Existing Investment Portfolio
If you are just beginning to invest your money, then it is always better to start with safer options that offer decent returns and more importantly are low in risks. As you grow and reach a point where you have already invested in a number of yielding plans to take care of you in the future, you can always play around investing in high risk plans.
Ø Risk Appetite and Flexibility
Carefully consider the risks involved in the plan you choose and understand them well; go ahead only if you know you are okay with the risks involved.
Apart from these pointers to help you in choosing the best investment plan for you, always make sure you read all documents and the terms and conditions before you sign up for any plan to make an informed choice. The right plan will help you save money, offer tax benefit and returns.
About HDFC Life
HDFC Life, one of India’s leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions. HDFC Life’s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health.