Investment and security

5 ways to meet your financial goals

Google+ Pinterest LinkedIn Tumblr


When you were a kid, you had a tiny piggy bank where you would save the money given to you by your elders.  This money was collected by you to buy something you wanted in the future. As you grew up, you started to realize the importance of savings and investments. However, you may find it difficult to save or invest regularly on time because your needs have increased.  A systematic investment plan will ensure that you are on schedule when it came to investments.

Investments plans are helpful for two major reasons. They help to create wealth and realize long-term financial goals and dreams. The other reason is that they act as a shield during a rainy day when sudden expenditures can crop up. Here are some great investment plans which are quite beneficial:

Savings Plans: Savings plans are very popular because the money which you invest earns interest at a steady rate and delivers good returns. Saving plans also known as endowment plans provide guaranteed returns. If you have extremely low risk appetite than this investment option is best for you. Another benefit of investing in endowment plans is that it provides tax benefits.

PPF or Public Provident Fund: Despite the declining interest rates, PPF remains one of the most popular investment options. By investing in PPF one can enjoy EEE i.e. exempt, exempt, exempt status because the contribution, interest and maturity proceeds all are tax exempted. However, the interest rates on PPF and other small savings schemes are linked to government bonds, with a small mark-up. While investing in PPF is a good option it shouldn’t be your only investment option.

Unit Linked Insurance Plan (ULIP): Traditionally, ULIPs were looked down upon due to various charges like policy charges, allocation charges, etc. linked to it. However, the new age ULIP is a game changer. It not only has zero allocation charges but also invests additional allocation in your funds. Investing in the new age ULIP gives you complete control of your money. You can invest in debt to equity funds based on your risk appetite. You also get the flexibility to switch between funds based on the market’s performance.  ULIPs are best for long term investments because they are systematic and disciplined form of investment. Don’t miss out on investing in ULIPs as they give you triple benefits of life cover, tax exemption and great returns.

RDs: If you are investing for very short term goals like a vacation or a new gadget then RDs are the best form of investment. RDs will form a habit of regular savings. The interest rates are fairly decent, however it is taxable and one cannot claim any tax benefit.

Term insurance: Wondering why term insurance is mentioned in this list? Well… a term insurance is not an investment option for you. However, there are financial goals which you and your loved ones’ have aimed for collectively. So what if something unfortunate were to happen to you? Would you want those financial goals to go for a toss? The answer is NO… And so, term insurance should ideally be a mandatory for you as a smart investor.
Avoid these 5 mistakes before buying a term insurance plan!

Investment Plans offer a lot of benefits to the investor. You need to make sure to buy the right investment plan. Start your investments early to reap the benefits of compounding.

Comments are closed.