We all set financial goals, but unless we take concrete steps to accomplish the goal, it remains only a wish. If you have financial goals, here are a few tips to achieve them with proper investment planning.

Most kids in India learn the habit of savings right from an early age; the first savings most of us have is the piggy bank. The money collected in it was used to buy something that you wanted dearly. As an adult, you may realise the importance of savings but may not know the right way. To ensure you save regularly, you must have a systematic investment plan.

An investment plan plays a vital role in building a corpus and realising your long-term financial goals. It can also help you be financially ready to meet the unexpected expenses that may crop up at any time. Here are a few investment plans that are beneficial for all.

Savings Plan

Savings plans are one of the most popular investments that provide valuable returns through interest. It is an ideal investment option for investors with low-risk appetite and low to medium-income earners. Another significant benefit of savings plans is that the returns are guaranteed at the end of the plan tenure.

Public Provident Fund or PPF

Although the interest rates on PPF have reduced over the years, it remains one of the most preferred investment options because of its EEE (exempt, exempt, exempt) tax status. The amount you contribute towards the PPF account is exempted from tax under Section 80C of the Indian Income Tax Act. Also, the interest earned and the maturity proceeds you receive at the end of the investment tenure are eligible for tax benefits.

While PPF is an excellent investment to have in your portfolio, you must not rely on it alone to build a corpus. To create a larger retirement fund, you must diversify your portfolio and invest in equity-related funds.

Unit Linked Insurance Plans or ULIPs

When the ULIPs were first launched in India, it was down-looked by the people because of the various charges associated with it. Today, with the multiple changes introduced, ULIPs have gained immense popularity among the investors in the past few years.

ULIP is an ideal investment choice for first-time investors looking for a chance to invest in the money market without taking too much risk. Professional fund managers manage the investments, and the funds are allocated as per your specific investment goals. Additionally, ULIP ensures that you get financial protection against life risks.

First-time investors should have ULIP in their portfolio and enjoy its triple benefits of life insurance cover, returns on investment, and tax benefits.

Term Insurance

Yes, term insurance is not an investment option that yields returns like other options mentioned above. However, term insurance is vital to safeguard your loved ones’ financial future even when you are around. In the event of your unfortunate and untimely demise, your family may face financial hardship. This is where the term insurance plays a vital role; the death benefit received (equal to the sum assured) can help your family take care of their expenses (and debts).

As a smart investor, you must mandatorily have term insurance in your portfolio.

Final Word

Investment plans offer a host of benefits to the investors, and you must make sure that you plan your investments well, and start your investment as early as possible to reap the benefit of compounding returns.