Just when Indians started living with the pandemic, the second wave of COVID-19 made it clear that it will be a while before we can conclusively call ourselves safe. The lockdown imposed and the economic slowdown, as a result, put huge pressure on our finances as people lost jobs.
It is during this period that a lot of people realized the importance of having the protection of saving schemes that can protect them against such eventualities. But luckily, it is never too late to invest in the best saving plan.
So, if you are planning to start investing, this article will tell you about important features that you need to check before adding saving schemes to your portfolio.
Read on to know more.
- They should save you taxes
This is one of the single most important features of saving schemes. The best saving plan will help you save taxes u/s 80C, offer tax-free maturity/death benefit, and encourage you to invest any amount without losing any of these benefits. Don’t worry, these plans can also save income tax for self-employed individuals. Savings plan, such as life insurance, offer three tax-exemptions to your investments. Therefore, if you choose any life insurance product for your portfolio, you will be able to enjoy the benefits entirely tax free.
- Guaranteed returns
The best saving plan is the one that gives you guaranteed returns. It means that at the time of maturity, you know exactly how much money you will receive. As a result, you are able to plan your crucial life goals using these plans with ease. For example, if you want to have Rs. 50 Lakhs for your child’s marriage in the next 20 years, a small investment of Rs. 13,000 per month will help you reach that goal in 20 years.
Moreover, since you get guaranteed returns from your investment, you only need to worry about staying invested throughout the investment period. In most cases, your best saving plan will be tied to a life insurance product which means that your family will still receive money, in case of your untimely passing.
- Wealth creation opportunities
While guaranteed returns only offer minimum assured value, wealth creation instruments in your best saving plan will add more value to your plan. Needless to say, the longer you stay invested, the more bonus you will accumulate over time. Thus, you will not only receive the minimum amount at the time of maturity but there is a good possibility that you will receive a lot more than that.
- It should enable you to pursue your dreams
Money is an important instrument that can take you wherever you want. It is one of the most crucial tools that you need to pursue your dreams. Whatever you want to achieve in the future will require seed funding. If you plan ahead and invest in the best saving plan at a younger age, you will be able to pay for these goals with ease at a later stage.
- It should secure your future
In India, people put a huge emphasis on saving for rainy day. A financial or medical emergency can arise at any time. Not having a robust plan to support these contingencies will take not just an emotional toll but also a financial one. There is only so much your savings can achieve at such a time. At the same time, unless you have a stable job, you never know when you will be out of the job. In an economy that is suffering every day at the hands of the global pandemic, a saving scheme has become necessary to protect your finances in such uncertain times. The best saving plan will have a reliable retirement plan weaved into the portfolio so that you can get assured long-term security amid volatility.
- Investment Flexibility
At the end of the day, your investment plan should give you the flexibility to choose the best saving options. For example, if you are a salaried person, a monthly investment plan will be most suitable for your needs. However, business professionals may prefer lumpsum payments annually or bi-monthly.
Moreover, you may have multiple goals at the same time. Therefore, you should be able to invest in different products simultaneously to reach those goals in due time. You should be able to add or remove instruments from your portfolio as per your income growth.
There are many such important features that make some plans better than others. However, with so many options, it can be challenging to build the best saving plan on your own. Don’t hesitate to take professional help or use online tools available for new investors to make an objective investment decision. Be sure to look for these features when you are buying a plan.
