6 Different investment plans to consider investing at an early age

 6 Different investment plans to consider investing at an early age

Investing is a form of wealth creation activity. The earlier you start, the better wealth you create. The primary purpose of an investment plan is to help you create assets & build wealth over a long time to help you avoid falling into any financial problems in the future. It is imperative to invest into the right investment plan because just having one source of primary income is not enough these days. With the ever-changing times, the tumultuous global scenarios affecting inflation rates & putting a strain on everyone’s pockets & such other reasons are required for you to invest in investment plans in order to protect your financial interests for the future. 

Here are six different investment plans that you can consider for investing at an early age: 

  1. Unit Linked Investment Plans (ULIPs): Unit Linked Plan, aka ULIPs, is an investment plan that segregates the funds you invest into equity investment & provides you with coverage. It helps you invest and grow wealth while protecting your life.
  2. Endowment Plans: Endowment plans offer you insurance, and it also has a savings component. They offer you the best of both worlds since savings is critical and instrumental to creating good wealth. The endowment plans do come with a tenure that is fixed. 
  3. Monthly Income Plan: A monthly income plan includes systematic capital market investment as well as life insurance. These plans enable you to invest in a capital market of your choice on a regular basis. These investments can be made monthly, quarterly, semi-annually, or annually. These plans, like ULIPs, allow you to invest in equity, debt, or balanced funds, depending on your risk tolerance. This investment plan provides you with the benefit of the best of both worlds.
  4. National Pension Scheme (NPS): For employees across all industries, NPS is a long-term investment programme funded by the Indian government. You can create a retirement fund with the use of this device by methodically investing money through regular payments. As soon as you turn 60, the plan enables you to take a set percentage of the corpus as a lump sum withdrawal and get the remaining amount as a monthly income. According to the Income Tax Act of 1961, NPS also provides tax advantages.
  5. Public Provident Fund (PPF): A PPF is also an excellent retirement investment option that offers high returns with minimal risk. All Indian citizens can open a PPF through a bank or post office. As a result of the 1961 Income Tax Act, it offers tax benefits.
  6. Senior Citizen Saving Scheme: Investors over the age of 60 can benefit from the Senior Citizen Saving Scheme, as its name suggests. Banks, post offices, or private institutions can open this type of account. The Income Tax Act 1961 also allows you to earn tax benefits.

With proper research, professional help and some financial knowledge, you can start investing in various investment plans that will allow you to surmount a good amount of wealth, create a unique lifestyle & provide comfort to yourself & your family. Taking sound decisions while making investment plans related decisions is essential. In order to get the most out of investment plans, you can set your financial milestones to help you out.

 

Dorothy Moore

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