5 Reasons why you should not compromise on your tile while rennovation
Understand how Investment Plans help to get Monthly Income
Investment plans are an age-old solution to wealth planning. Even if you are a business owner or a salaried employee, an additional source of income will be the best thing you can source for yourself. Investment Plans are one such option available in the market that you can avail in order to get the best deals. Investment plans will assist you in sorting out your long-term needs or short-term needs, depending on how you plan to utilize the investment plans that are available in the market.
Let us go through how you can get monthly returns by investing in investment plans:
Currently, there are several types of investment plans available in the market. They are as follows:
- Unit Linked Investment Plans (ULIPs)
- Endowment Plans
- Monthly Income Plan
- National Pension Scheme
- Public Provident Fund
- Senior Citizen Savings Scheme
Let us discuss some of the investment plans that are mentioned above:
- Unit Linked Investment Plans (ULIPs): It is a hybrid instrument that provides dual benefits of not only making investments in the capital markets but also providing the holder of the policy with a life cover. These plans can be varied with respect to the investment in capital markets by varying the investment to be leaning towards equity or towards debt or finding a middle ground that is comfortable to most average investors. ULIPs are a long-term investment product that offers a healthy market-linked capital growth over a period of more than 10 years.
- Endowment Plans: They are life insurance plans that combine the possibility of savings as well protection in the form of life cover, packaged into a single product. The plan is designed to provide risk-free coverage and savings in a systematic and secure manner. The returns that you may earn on this policy are not linked to the markets, but this is a product that comes with a fixed tenure. This is a policy that will provide you with assured returns.
- Monthly Income Plans: A monthly income plan is an investment plan that offers to park your funds into a systematic investment in the capital markets while providing you with a life cover. The plan provides you, the holder of the product with an option to make periodical investments into the capital markets of your choice. The frequency of these investments can be dependent on your appetite and capacity, and the frequencies can be classified as monthly, quarterly, half-yearly or yearly.
These are some of the investment plans that can help you earn monthly returns if you invest in a wise manner. Reading, researching, learning and reaching out to professionals for help with respect to making investment choices can help a lot. In order to invest in investment plans to earn monthly returns, you can try chalking out an investment plan based on your income, expenses, the goal of the investment (wealth creation or short term focus or a long term focus or anything else), your age, your risk appetite, etc. All these factors will help you reach a conclusion that is healthy for your financial strength.