The Investment that earned me enough to live my dreams

The Investment that earned me enough to live my dreams

 
Best Investment plans from Canara HSBC, The Investment that earned me enough to live my dreams

Looking for a plan to invest your annual bonus in order to meet your long-term financial goals? When investing money, there are several factors to consider, one of which is comfort. So, how about putting money into a one time investment plan?

The name is intriguing, and so is the plan. Such a strategy is ideal for those with a large sum of money and a high-risk tolerance.

There are numerous benefits to investing in a one time investment plan. There is a lot of capital appreciation, a one-time transaction fee, better long-term returns, and the convenience of not having to worry about premium dates.

Let us explain what a one time investment plan is and how to choose the best saving plan with the highest returns.

What exactly is a One-Time Investment Plan?

A one time investment plan is a type of investment in which the investor invests a lump sum amount all at once for a set period of time. A one time investment plan allows investors to earn returns on inactive funds. Life is unpredictable, and if you ever need a large sum of money, such investments can be beneficial.

India's Top One Time Investment Plans

Almost all investment instruments have a role to play depending on your expectations and goals. One factor that determines which investment is right for you is time. Fortunately, there are investments such as Unit-linked Insurance Plans that allow you to divide your investment amount among several avenues, ensuring a balanced return.

Other considerations include your level of comfort with any investment. For example, equity investments are riskier but may provide better long-term returns, whereas debt investments are safer but have fixed returns. So, taking all of these factors into account, here are some of the best saving plans for you to park your bonus income.

1. Equity Mutual Funds

Because of the diversification and professional management involved, equity funds are less risky than direct market investments.

If you want to save tax under Section 80C for the fiscal year and want to invest in equity funds, consider ELSS or Equity-Linked Savings Schemes. Equity-linked savings schemes are pure equity funds, but they qualify for section 80C deductions of up to Rs 1.5 lakhs.

2. Debt Management Funds

There are numerous types of debt funds, but we are only accounting for those that invest in AAA and AA-rated corporate bonds or government securities for your consideration.

These funds are far less risky than equity funds due to their securities composition. You also benefit from the fund's diversification of securities. These funds also provide more consistent returns, but they may be less tax-efficient.

3. Liquid Investment Trusts

Liquid funds are among the most useful investment options, but they are not the best when it comes to generating long-term returns. However, these funds are ideal for keeping your money safe while you decide on the best saving plan.

Furthermore, because there is no exit load, you can transfer your invested amount directly from the liquid funds to another fund. This straightforward option provides you with numerous opportunities to invest systematically.

4. ULIPs to liquid mutual funds

ULIPs are extremely tax-effective investments. That is, they provide you with an 80C deduction, a tax-free maturity value, and a variety of equity and debt fund options. ULIPs may be the only investment vehicle that allows you to invest in both debt and liquid funds while still reaping the same tax benefits.

However, tax advantages are only available if your annual premium is less than 10% of the policy sum assured. As a result, if you want to invest Rs 10 lakh in a ULIP, you will need a sum assured of Rs 1 crore. However, this is only true if you invest Rs 10 lakhs all at once.

5. Equity Funds to Liquid Mutual Funds

Due to diversification, equity funds carry lower risk than direct equity investments, but they are still volatile. That is why you should invest in equity funds in a systematic manner. In a volatile market, a systematic investment approach will allow you to benefit from rupee cost averaging.

You can easily create a systematic investment plan or SIPs for investing in an equity fund if you are a regular investor or investing out of your regular income.

6. Liquid Mutual Funds in Relation to Other Investments

You can create similar investment plans to NPS or PPF using liquid funds, such as a deferred annuity plan. If you already have an NPS tier-I account, you can claim an additional Rs 50,000 deduction above the Rs 1.5 lakhs 80C limit.

Other notable investments include senior citizen savings plans, which can be given to your parents as a gift. Also, keep in mind that each investment option has its own set of reasons, ideal investment period, and risk-return levels. So, go through all of the plans to find the one that makes the most sense to you.

Advantages of making a One Time Investment

Many people believe that SIP plans are superior to one time investment plans. So, in order to assist you in deciding whether or not to purchase a one time investment plan, we will now discuss the various benefits of a one time investment plan.

1. Increased Capital Growth

Your returns are determined by market performance. The amount invested later does not have time to adjust to market conditions when using SIP or recurring payments. A lump-sum investment stays in the market for a longer period of time, providing the opportunity for higher capital appreciation.

2. Increased Long-Term Returns

Because of the power of compounding, lump-sum investments generate higher returns. This is possible because your money remains in the market for a longer period of time.

3. No hassle

A one-time investment is convenient because you don't have to remember or worry about premium payment due dates. At the start of the policy, you invest the entire amount.

4. Reasonably Low Transaction Fees

The transaction charges involved in a one-time investment are only one-time. Unlike other installment-based investments, you do not have to pay transaction fees every time you invest.

Finishing Up

Finally, we recommend that you invest your spare cash in a dependable one-time investment strategy such as liquid funds. Such one-time investments will yield enormous returns in your hour of need in the future. However, only purchase a policy after conducting a thorough examination of the various plans on the market.

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