Skip Navigation
0 of 0 Displaying
 |   Displaying

No Results

    Understanding Investment Options to Grow Your Money Wisely

    Last Updated On 16-06-2021

    Investing your earnings wisely is an essential aspect of creating wealth. Knowing how to invest money can help you create income later in life as well as generate wealth over the long term through small payments into a savings or investment product. However, it is crucial to pick the best investment plan to suit your current life stage, long-term needs, and appetite for risk. Compared to a pure savings plan, an investment product can stretch your money further and beat inflation over time.

    Get a Callback

    OTP sent successfully

    Thank you for getting in touch with us. We will contact you shortly.

     
     
     

    What is an Investment Plan?

    Before going into detail about the various types of investment plans, let’s first establish how investments differ from savings plans. Each type of plan represents different approaches to building wealth that accomplish distinct goals within an overall financial strategy. For the risk averse, savings plans enable people to safely accumulate money over time. It is typically money set aside for an emergency or future purchase.

    In India, the government offers the Public Provident Fund (PPF) as a retirement savings scheme. It is one of the most popular and safest investments to ensure a secure retirement. It is also one of the only schemes that offers a tax-free maturity benefit and you can borrow from the accumulated funds within the first five years of the account. Afterward, partial withdrawals are allowed. There is also the National Pension Scheme (NPS), which is a long-term savings plan. You can claim deductions under Section 80C up to Rs. 1.5 lakhs for your own contribution and up to Rs 50,000 for your employer’s contribution to your account. At maturity, you can withdraw 60% of the fund tax-free, while the rest must be invested in a pension plan. You can start at any age after 18 up to 65 years of age and after 60, you can withdraw the money entirely or make smaller withdrawals until the age of 70.

    Additionally, mutual funds are collective investments in which pools of money are invested in the stocks and bonds of various public companies and managed by a fund manager. Tax-saving fixed deposits also offer another type of savings account that delivers assured returns after a designated period with minimal risk.

    Alternatively, investment plans are financial instruments that enable you to create wealth for future needs. The most common of these are traditional stocks and bonds. There are also various investment plans that enable you to regularly contribute to different money-market products. These investment plans provide the much-desirable advantage of creating wealth through disciplined payments over time.

    Unit Linked Insurance Plans (ULIPs), on the other hand, combine life insurance cover with an investment option. ULIPs offer unique benefits such as tax rebates on premiums and benefits received during the policy term under Section 80C and Section 10(10D) of the Income Tax Act, 1961. Policyholders can withdraw a portion of the invested money, after the lock-in period. Additionally, policyholders have the option to create their own mix or invest in individual equity, debt or balanced funds. Solutions such as PNB MetLife Endowment Savings Plan Plus empowers you to accumulate your savings for your financial needs at every stage of life in addition to the health and life insurance benefit.

    How to determine which types of investments are best

    While there’s no one-size-fits-all approach to meeting your financial goals, it is important to balance your risk tolerance with your expectations for returns and liquidity needs throughout life. For example, investing for retirement requires a different plan than what is required for wealth accumulation, preparing for your child’s education, or buying a home. Once you have established your motive or investing, choosing the product becomes rather easy. Consider the following when planning your investments:

    • Choose investments carefully after conducting research
    • Don’t fall for “quick-buck” schemes that promise high returns in a short time
    • Review your stock and mutual fund investments periodically
    • Consider the tax implications on returns you earn on your investments
    • Keep things simple and avoid complicated investments that you do not understand
    • How much you are earning and how many financial dependents you have

    A young investor will have vastly different investment goals than an older individual. Therefore, investments should be chosen carefully, with the guidance of a financial advisor to get the most out of it.

    Disclaimer:

    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.

    PNB MetLife India Insurance Company Limited
    Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
    IRDAI Registration number 117 | CIN U66010KA2001PLC028883
    For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
    Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
    The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
    Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.

    AD-F/2021-22/161

    Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers!
    IRDAI is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint.

    RELATED PRODUCTS

    WEALTH CREATION

    3 Things To Know When Creating A Financial Plan

    Unlike a pure insurance policy, a Unit Linked Insurance Plan (ULIP) gives investors the benefits of both insurance and investment under a...

    WEALTH CREATION

    5 things you must find time for in 2018!!!

    1. Your health is everything, make it your best friend.. This point cannot be emphasised enough. Your body is the instrument that will take yo...

    WEALTH CREATION

    Benefit from Rising Bond Yields with an Optimum Savings Plan

    Bonds are debt instruments which have a specific maturity period and pay interest on your investments. There are two types of bonds:...

    WEALTH CREATION

    Can ULIPs really give good returns? Let’s find out

    ULIPs (Unit Linked Insurance Plans) give you a combined benefit of life cover and investment returns. So, you can watch your investments multiply t...

    WEALTH CREATION

    Everything you need to know about sum assured in ULIP plans

    Unit-Linked Insurance Plans or ULIPs are a good option for those who want to grow their money and get themselves insured at the same time. Wit...

    Want to know more about how you can protect your family?

    See all our articles

    Disclaimer:
    The aforesaid article presents the view or 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 incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ before making any decision.

    PNB MetLife India Insurance Company Limited, Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka.
    IRDAI Registration Number 117. CI No: U66010KA2001PLC028883. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding the sale.
    The marks “PNB” and “MetLife” are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
    Call us Toll-free at 1-800-425-6969. Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203
    EC342 LD/2019-20/358

    BEWARE OF SPURIOUS/FRAUD PHONE CALLS!
    • IRDAI is not involved in activities like selling policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

    Disclaimer

    Collapsed Expanded

    As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at claimshelpdesk@pnbmetlife.com or indiaservice@pnbmetlife.co.in. You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.

    PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance PlansTerm PlanProtection PlansLong Term Savings Plans , Retirement Plans & Child Education Plan.

    Site best viewed in following browsers
    Chrome 70+ , IE 11+, Firefox 76+, Safari 11+

    Get a Callback Get a Callback

    Ask khUshi

    Hi! I’m khUshi. How can I help you?