Savings form an important aspect of life for every earning individual. This is why there are several savings planin India. The market understands that each individual has their particular capacity to invest in and accordingly schemes are available ranging from high risk taking plans to zero risk taking plans. Here are a few popular savings solutions that individuals opt for –
Direct Equities This happens to be the ideal investment option for someone looking for a long term savings options. It provides better returns on a long term time frame. However, only investors with a good appetite for risk should opt for this investment plan, as there is risk of losing a certain percentage of your investment in case the market dips.
Mutual Funds This savings solution offers you increase in investment with cost efficiency, professional management, risk – diversion and a good regularity body. This plan is feasible to begin with as it gives you the flexibility to start your investment with an amount as low as Rs. 500. Hence, even a person who has just started working can plan his savings with this plan. You can invest in the plan for a certain period of time and get your investment monitored by professionals.
Life Insurance Plans– This is one of the most availed savings solutions in India. Life insurance is a plan that is basically a contract between the buyer and insurance company. As per this plan, the insurer offers to pay a certain predetermined amount to the nominee of the policy in case of death of a buyer. The policy mainly offers assistance to the family of the policy holder in case of an eventuality. Being a very old product in the market and low on risk this savings solution is highly trusted by investors. With the introduction of ULIP plans in the market, it now possible to avail cover for risk and returns of equity market as the policy invests in equity linked instruments. The different life insurance plans you can avail include term plans, child plans, retirement plans etc.
Fixed deposit This is another extremely trusted savings plan that investors with low risk appetite opt for. Under this plan you can fix a certain amount of money with the bank for a particular period of time of your choice. In this period the bank adds a particular percentage of interest to the amount deposited. When you receive the amount at the end of the deposit period, the total amount consists of the principle amount deposited and the interest as accumulated. Banks offer a higher interest rate on these accounts as compared to savings account.
What are the various savings plans available in India