The rising expenses and the unpredictable nature of life have enhanced the importance of making investments. Smart investments can not only help you secure your future but also allow you to achieve your financial goals. In order to ensure that your investment yields you maximum returns, it is essential to research and plan your investment wisely. While making a long-term investment, it is also important to assess the risk factor associated with it. Optimum returns and minimum risk are the major factors you should consider before making an investment. This can prove to be extremely fruitful in the long run.
While making an investment, you should also make a note of the inflation that might arise in the future. Although your money would grow through your investments, inflation would reduce its value significantly. This can consequently affect your entire savings. Therefore, it is essential that your investment beats inflation. Investments that grow faster and provide good returns can beat inflation and safeguard the future of your family. Below are a couple of investment options that can successfully beat inflation and enable to fulfill your long-term financial goals.
Equity investments generally refer to the buying of shares in the stock of a company traded on a stock exchange. These investments typically grow faster than alternative investments like fixed deposits (FD) and real estate. As the company generates a profit, its stock price increases, thereby earning you profits too.
Apart from having this potential for capital appreciation, equity investments have numerous benefits like liquidity, income from dividends and the option of diversification. Diversifying means purchasing the stocks of different companies in different economic sectors at different times. This reduces the risk associated with equity investment because if the stock of one company drops, another might rise to offset the loss. Investing in a good quality stock mutual fund is a great example of diversification of your equity investments.
Unit-Linked Insurance Plans (ULIPs)
ULIPs are the most contemporary investment plan offered by life insurance companies. ULIPs provide the investors with both insurance and investment under a single plan. This dual-purpose served by a ULIP plan gives it an edge over other investment options in the market.
ULIP is a goal-based investing that can help you save enough money for your future goals such as child’s education, buying a home, etc. Due to the rising inflation, it is possible that your pension after your retirement wouldn’t be sufficient to sustain a comfortable livelihood. With ULIPs, you can have a retirement plan and accordingly save enough money to live a comfortable life.
Under section 80(C) of the income tax act, you can also avail tax benefits for the premiums paid for ULIPs. The flexibility to choose your fund option, transparency and life cover are some of the other benefits of availing a ULIP plan. So why wait? Invest in ULIP and secure the future of your family, today.