Know More about Investment Plans in India

General Indian people are more comfortable in saving their hard earned money than investing it. There are some good reason for this fear and hesitation about investment. However, the primary reason of this trend is lack of knowledge about investment and how it should be made. Clear information about the minimum return on investment plays a vital role along with the guarantee of getting the money back in time. Systematic investment plan (SIP) can provide answers to all such queries at the back of the mind of every individual who want to invest to make their money grow. Such an investment plan has the capacity to prevent the drawbacks of equity investment while getting the high return at the same time. This kind of investment resembles investment in mutual fund. With this investment process you can groom yourself as a disciplined investor who invests on a regular basis. 

SIP is Beneficial

Although these investments may be small in amounts, there are certain benefits of SIP:

·         You can be benefitted from 'Rupee Cost Averaging', an investment principle.

·         SIP can counter inflation

·         No requirement to time the markets

·         Power of Compounding

·         Making the habit of saving in investors

·         Hazardless investment  

SIP in India is quite affordable for many investors as the minimum investment here is Rs. 500. The Equity liked saving scheme (ELSS) has a lock-in of 3 years. That ensures saving. Moreover, you can exit from the mutual fund at any point of time. An early exit from the scheme requires an exit load that varies between 0.01% and 2%

Plan Your Investment 

Investment plans in India depends on individual earning potential, economical condition of the country, inflation rate, value of gold, and others. Your financial planning must include tax planning. Tax saving benefits you in further investment and more saving on your principal amount. You can allow your money to grow in recurring deposits, fixed deposits, MIS, life Insurance Policies, Mutual Fund, and stock market. While investing, it is very important to choose companies to whom you are going to invest your money. Hire some expert financial advisor who can find you government certified companies having good financial strength. 

Investment plans differ a lot among people. The best plan for you can turn to be the worst for other. If you are going to find the best investment plans in India, you must focus on the following factors:

·         Investment duration

·         Risk profile

·         Final aim

Investing is share market and SIP is very much beneficial in terms of growth and earning. Risk factors are always there. If you are a risk taker, investing money in share can bring you good return. If you are not, you must invest in policies in which you will get guaranteed return.