People make an investment in order to grow their money, but not everyone is able to get the desired results. Investment can be risky, but when done strategically, can reap great returns. However, there are strategies and tips that can help you make appropriate investments in the right places, thereby providing you with desired outcomes. These tips will also help you formulate a specific investment plan that is tailor-made to suit your financial decision-making. Here are some of the financial planning tips that can help you out.
Stir Away from Debts
If you wish to invest and grow your money, first you need to sort out your financial planning by getting away from all kinds of debts. Even though it seems that debt tends to help you out in the short-term, but in the long run, they play an important role in emptying your financial coffers by means of regular EMI payments. Moreover, debts are a financial burden and put additional stress on you not only financially as well as emotionally. Such stress can further harm your prospects of making investments that you would have otherwise made by taking calculated risks.
Maintain Investment Consistency
Investment is a kind habit, especially the investments that can provide you with good returns. However, it is important that such habits are not driven by emotions, rather backed by solid factors, such as market trends and economic condition of the country. Moreover, one also needs to know when to put in your money and when to pull out. You can always go for investment plans like ULIP, wherein one part of your premium is invested by the insurance providers into the financial markets that include the debt as well as the equity market. All this is done by taking all the risk factors into consideration.
Evaluate your Investments Periodically
With the changing trend of the market, the investment plans also change. There are several policies coming out every 2nd day in order to cope up with the market sentiments and inflation. So, in order to be up to date yourself, you also have to review your policies regularly to check if they are at par with the rising inflation as well as the market dynamics. In case you wish to change the plan, you can upgrade it with the existing service provider.
Invest Early & Smartly
The early bird catches the worm. Similarly, an investor gets maximum returns when investing early in their career. It is observed that investing early also assures more returns with less premium as premium charges depend on the age of the policyholder. Moreover, the power of compounding gives enhanced returns when you are investing in the early days of your career. In addition, when you invest smartly by analysing policy details rather than falling for the tall claims of the insurance providers, you stand a better chance of getting good returns.
Set Aside your Fear & Analyse your Risk
Whether you are investing in an insurance product or a savings product, or even mutual funds, there is always some risk associated with it. So, it is important that you shed all your fears of risks and analyse the policy documents of each of them before investing. Moreover, you also need to remember that your investment returns have to battle with the rising inflation. Ensure calculated risks so that you are not outrun by inflation and lose out the hard-earned money.
Moreover, making investments is also a way of saving your taxes up to ₹1,50,000 under Section 80C of the Income Tax Act. In most cases, you also get the provision of getting a tax exemption on the maturity amount under Sec 10(10D) of the Income Tax Act.
However, before you get into the investing market, you need to have a basic idea of a few aspects including the premium charges or the flexibility options, which would help you choose the right service provider. Furthermore, in case you need more information, you can contact the customer support 24*7, or you can request an online quote and compare the plans available in the market yourself.
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*Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details.
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
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