Most experts would suggest that the best way to increase your wealth is by investing your money. This is a sound financial advice heeded by most salaried individuals and businessmen. After all, who doesn’t want to make extra money, right? If you are one of them, you must know that there a plethora of avenues for investing your money and this has rendered the process extremely convenient. Given the global rate of inflation, it has become absolutely necessary for safeguarding your purchasing power.
The process of investing has become easier thanks to rapid advances in technology and the internet. This is the age where information and data is freely available across a wide array of informative websites. The traditional method of investing has almost become obsolete thanks to digitization. This has also helped increase efficiency and security while making things easier for investors. Electronic transactions are preferred by most investors and failure to be abreast can lead to many disadvantages. You should be able to make most of the opportunities and knowing how to invest online will help you stay ahead of the game.
What are Investment Plans?
To put it simply, they are financial instruments that help you secure your financial health by making a considerable amount of money. One of the common examples is life insurance products that provide long-term security while also helping you create wealth. Investment plans will play a major role in helping you achieve your financial goals.
They will help fund your child’s education, cover wedding expenses, pay hospital bills arising due to unanticipated injury, and ensure steady income during retirement and much more. It’s essential that you opt for well-structured investment plans that allow you to accumulate wealth and create a corpus.
Benefits of Online Investment Plans
Investment plans transform your Life Goals into reality: It’s always better to be prepared for dealing with various life challenges, be it personal or financial. A sound investment plan can play the role of your best friend during both good and difficult times. Apart from providing additional income, a properly designed investment plan will help you approach towards savings in a disciplined and systematic manner. This will provide a great deal of financial security by helping you build a corpus of funds.
Generating income: Investment plans provide a plethora of avenues for earning extra cash in the form of interests, bonuses (assured and non-guaranteed), dividends and much more. You can also generate income from mutual funds, debts, sale of equities and also real estate. If you’re investing in a single plan make sure to get a good return on investment.
Accumulate future wealth: This is the primary goal of every investor and the best medium for achieving this is a solid and sound investment plan. You can build a corpus fund by opting for an appropriate life insurance plan and this will provide returns derived from investing in equity/debt over a long tenure.
Risk Protection: No one can predict the future, but that should not stop us from taking the right steps towards it. Your investment returns will provide a safety net during emergencies and such contingency funds are bound to provide a host of long-term benefits.
Types of Investment Options in India
Traditional Plans: It’s a low-risk investment option that provides life protection coverage with assured returns. Up on maturity, the policyholder will receive certain benefits as mentioned in the agreement.
Unit Linked Insurance Plans (ULIP): By selecting such plans, you can invest in a variety of funds like debt, equity and even hybrid. If you’re a risk taker, then you are more likely to receive higher returns if you stay invested for at least 10-15 years and amass a sizeable amount of money at the time of maturity.
Mutual Funds: Also known as systemic investment plans (SIPs), mutual funds are highly diversified and cost efficient. They are highly regulated and returns are based on your risk appetite.
Equities: It’s a type of security that renders ownership in an organisation. Equities are an essential part of stock trading and also can be purchased via initial public offerings. Investing in this instrument for the long-term has the potential to provide massive returns. Or you can start buying and selling securities in the stock market is through intraday trading.
Bonds: They are fixed income instruments and their primary aim is to raise capital. Bonds are utilised by both government and private institutions to raise funds. Those issued by government are often considered safe and provide fair returns.
Bank Deposits: The safest means of investment that are known to provide low, but stable returns.
Advantages of Online Investment
- Purchasing ULIPs online is much cheaper than their offline versions.
- It’s easier to compare policies as information is readily available online.
- There are no intermediaries like agents involved, thereby eliminating additional costs.
- You can avoid the premium allocation charge and avail lower premiums.
- Online policies generally provide higher returns as compared to their offline counterparts.
- Lower to no premium allocation charges mean more of your money is being invested.
- Online plans provide a greater net yield than those availed through traditional methods.
- Forms can be filled online along with the uploading the scanned copies of requested documents.
Given the various advantages of buying investment plans online, there is no reason for you to hold back.