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Are you looking for a good money saving plan that even celebrities prefer?
It may seem that celebrities only generate money from their primary career and many commercials, with no need to investigate additional investing possibilities. Is this, however, true?
Whereas traditionally, the sole source of income for celebrities was performance fees, and investments were more conservative fixed deposits, money return policies, and gold, things have changed considerably in the last few years.
But can we learn anything from very successful celebrities? Are there any patterns that we can capitalize on? Let us investigate.
The Indian financial market has developed through time. This development has provided financially sophisticated sorts of investors in India with a profusion of money saving plans and long-term investment possibilities to explore. Let us look at the numerous forms of investments that are accessible in India.
1. Money Back Policy
A money back policy is a form of life insurance plan that enables the insured to receive recurring returns or a lump payment at a specified time throughout the policy duration. A money-back policy’s returns might be guaranteed, contingent on investment success, or a mix of the two. This enables you to choose a money-back coverage that is most suited to your specific financial objectives.
A basic money saving plan pays out a lump sum payment to the policy’s nominee in the event of the life insured’s death. This is referred to as the life insurance death benefit.
A money return policy, on the other hand, is a kind of life insurance policy in which the insured receives a part of the amount promised at regular intervals rather than a lump payment at the conclusion of the policy term. As a consequence, a money back policy is a liquid endowment program.
2. Stocks
Investments in equities markets or stocks give a long-term opportunity for wealth building. Understanding the many sorts of investing possibilities and identifying the correct stocks to invest in requires extensive study and caution.
You must also carefully time your entrance and departure points, and your investments must be continuously monitored. Capital appreciation occurs over time and is influenced by market volatility.
Stock investments in India might provide high returns depending on the risk tolerance of the investors. The good news is that, over time, certain equities have been demonstrated to outperform many other asset classes in terms of inflation-adjusted returns.
3. Fixed Deposits (FD)
Fixed Deposits, which are provided by banks and non-banking financial institutions (NBFCs), are a fantastic way to increase your money while keeping it secure.
Among the several forms of investments available in India, this is a popular option since it enables you to deposit a large amount of cash with your lender and choose a tenor that meets your requirements.
Following the end of the predetermined tenor, your deposit will begin earning interest at the interest rate you agreed to for the length of your deposit.
4. Mutual Funds
Mutual funds (MFs) invest in market-linked securities such as stocks, bonds, or a combination of both equity and debt securities. Depending on your financial objectives and circumstances, you may pick from equity funds, debt funds, and balanced funds in India. You may also use a Systematic Investment Plan to invest modest sums in MFs on a regular basis (SIP).
5. National Provident Fund (PPF)
The Public Provident Fund (PPF) is a government-backed asset that is regarded as one of the safest alternatives among the many forms of investing in India. You may invest in PPF by establishing a bank or post office account.
In certain banks, the minimum investment amount for establishing an account is as little as Rs.100 (this can vary for every bank). The yearly limitations for PPF deposits are then set at a minimum of Rs.500 and a maximum of Rs.1.5 lakh.
These investment kinds have a 15-year lock-in period and are tax-deductible under Section 80C of the Income Tax Act of 1961.
Best Saving Plans That You Can Avail in India
Here is the list of the best saving plans that you can buy in 2022:
1. Canara HSBC Life Insurance – iSelect Guaranteed Future
Canara HSBC Life Insurance – iSelect Guaranteed Future plan is a non-linked, non-participating individual savings life insurance plan that provides guaranteed additions accrued throughout the last five policy years to increase the benefits of your policy.
2. SBI Life Smart Guaranteed Savings Plan
SBI Life Smart Guaranteed Savings Plan is a classic non-participating savings plan in which you save methodically for a certain amount of time and are rewarded with guaranteed additions (GA) at the conclusion of each policy year.
3. PNB MetLife Guaranteed Income Plan
The PNB MetLife Guaranteed Income Plan is a non-linked, non-participating savings life insurance policy that provides income returns of 11% to 13% of the sum guaranteed. The insurance enables the accumulation of a person’s resources and their progressive growth in order to meet the future demands of the life insured and their family.
Which Investment Plan Can Help You Earn Maximum Return?
A money back policy makes sense for an investor seeking guaranteed returns with the possibility for growth, as well as payouts at certain intervals in their life to meet major future needs.
A money back policy intends to combine the advantages of an insurance policy with those of investment, resulting in a policy that generates income for the policyholder rather than just giving a lump sum payout in the case of death.
These money saving plans provide a guaranteed return on investment, as well as yearly payments and insurance coverage, making them an attractive alternative for those seeking both security and income.
As a consequence, policyholders get a guaranteed and predictable return on investment, as well as the possibility to enhance their wealth via investments. Plans may be prudent depending on your life stage when you invest and the many types of money returned.
Before proceeding with the purchase of a money back policy, you should be aware of the following features:
1. Guaranteed Returns
After a certain time, money is repaid to the life insured as a survival reward. The money is guaranteed if the policyholder lives the insurance period.
If the policyholder dies, the nominee gets the guaranteed amount as well as any accrued bonuses, if any. This applies to money back policy as well.
2. Income During Policy Term
A money back policy guarantees that the insured will get returns or the amount guaranteed every few years. As a result, the survival value accumulates over time and provides policyholders with a secondary source of income.
These monies might be used to take a trip, save for an unforeseen event, put down a deposit on a home or apartment, or pay off the children’s school or tuition expenses. As a consequence, money saving plans outperform other forms of life insurance on the market.
3. Riders to Increase Cover
As the name indicates, most insurance companies provide optional add-on riders that the insured may ‘add on’ to their money-back policy. These riders might be associated with medical situations such as life-threatening diseases, personal injuries, or term riders.
Wrapping It Up
With so many new investing possibilities available in recent years, celebrities have taken wise decisions to diversify their portfolios, with some being a little more daring than others. However, as an investor, you should not replicate their investing strategies without first doing due research to determine your own objectives and goals.
Examine your financial objectives to determine whether they are compatible with the advantages of the money back policy. Assess your risk-taking ability as an investor. Overestimation and underestimation may both harm your investment results in the long run.