The purpose of investment plans is to help an individual attain their financial goals over a certain period of time. Investment plans are meant to be helpful for the individual who is opting for the plan. The plans are meant to keep in account the current financial status of a person and help to improve it in a number of way in the future.
In the market as of today, there are a number of investment plans that are available for people to choose from. The investment plan options are such that it allows individuals to keep their money safe as well as in having the lowest amount of risks for the same.
Why Choose a Safe Investment Plan?
The most challenging part about investment plans is to choose the correct investment plan that caters to all the needs and the requirements of the one who is buying it. The time that the plan will be active for, the interest of the plan and most importantly the risks that come along with having a safe investment plan all need to be taken into account while choosing an investment plan.
A safe investment plan is the investment plan that will have the minimum amount of risk attached to it. There are a number of risks that come along with investing time and money into something. Some investment plans are such that if the individual does not pay for the plan on time then all the money for the investment plan is withdrawn by the company. Such risks and strict rules should be avoided.
Along with the added pressure of tax, an investment plan that lets the investor keep the maximum amount of money after the tenure of the plan is the one that is hoped for the most and is popular as well.
Requirement of a Fund Manager
A best Investment options are aplenty in the market as of today with more and more companies and local individuals promising to keep your money safe and help you. A fund manager is the key individual to look for in such a case. The fund manager is the key individual who will help in managing the accounts for the investment plan that is in question.
The experience of the fund manager is what determines the level and the loyalty of the fund manager towards his/her customers. The fund manager is required to have a license from the company that they are serving in order to act as proof and show clients that their occupation is completely legal and is not a fraud.
The fund manager comes with a cost as the service is not free of charge. The cost of the fund manager doing investment plans need to be understood between the investor and the fund manager.
The duties of a fund manager include keeping a track of the invested money, regularly updating the investor about the progress for the same, making sure that the invested money is not withdrawn or used in any way by the investor or anyone else and keeping contact with the custodian bank.
Best Safe Investment Plan Options
In India, there are a number of investment options that are present and offered by a wide number of companies and individuals. However, the risks of investing money can be extremely risky as the plan may vary and change terms and conditions at a regular basis.
Some of the different types of completely low risk investment plan options are as follows:
- Fixed Deposits (FD)
Fixed deposits are like a one-way bank account where an individual can deposit the money that they want to invest but they cannot withdraw from the account until and unless the fixed deposit tenure is over. Fixed deposits are available at any trustworthy bank of India. These deposits come with an interest rate that is meant to help the money grow to a certain amount. The deposits are also present for a certain period of time like one, two or three years. The minimum and the maximum amount of money that can be invested in this sort of investment plan is all determined by the bank and the individual himself.
- Public Provident Fund (PPF)
A Public Provident Fund is one of the safest and most preferred investment plans in India. This is one of the investment plans that exempts all taxes for the individual. If an individual invests their money in this sort of a plan, then under section 80C, they are exempted from all taxes.
The PPF plans are perfect for those who want a long-term investment plan. The percentage of interest on all PPF plans as of today is 7.6 percent. These plans come with a lock period where no amount of money can be withdrawn from the plan. If an individual is to break the lock period and withdraw the invested amount before its maturation, then they receive only 50% of the total plan.
- Senior Citizen Savings Scheme
Investment plans that are meant specially to help an individual through their senior years, the Government of India has introduced senior citizen savings schema for the same. This investment plan is only meant for those who have already retired from their work. The plan has a fixed percentage of interest that is decided by the government and it also has a lock period of a certain number of months or years that is decided by the investor.
Points to Keep in Mind for Choosing an Investment Plan
For choosing the best investment plan, there are certain factors that need to be kept in mind before decisions are made and an investment plan is chosen already. Some of the points to keep in mind are as follows:
- Keep in mind the goal of the investment plan and the purpose of the plan. Make sure that the plan that you are opting for attains the goal.
- See the risks that are associated with certain investment plans. Some plans come with zero tax, while others charge a heavy amount for tax.
- Keep in mind the locking period for each and every investment plan along with the minimum and the maximum amount that can be deposited for the same.
- Keep a track of the time that payments need to be made, the amount of money that you are investing in the plan.