Are you looking forward to investing in a long-term investment plan that safeguards your family needs? Or are you unsatisfied with the results of your current investment plan? Whatever the case is, we are glad to save you from this mess. With a plethora of different types of investment options like ULIPs, PPFs, mutual funds and so forth, investors tend to get confused.
As an investor, the sole purpose of your investment should be higher returns and low risk. Therefore, you should invest in those investment plans that garner your need for returns and manage your risks, at the same time. The right investment plan will simply offer you the security of your family as well as ensure your investment in equity markets. If you’re caught in the confusion of various investment options, then keep these 5 factors before shortlisting one product in mind:
List of factors to consider for comparison of investment options:
- Volatility
Since equity markets are volatile in nature, it is important to measure the volatility of the investment policy that you plan to invest in. This is simply because volatility has the power to decrease an investor’s returns on investment.
The best possible way to check for volatility is to find out the annual rate of return from the past decade of investment. Further, compare it on the basis of the highest number and the lowest number. Accept the volatility only if you are more than 12 years out of your goal or simply move on to anything that is less volatile.
2. Flexibility
The more flexible your investment policy is, the more is the possibility for your growth. Therefore, if you’re looking for an investment option, see to it that it is as flexible as Unit Linked Insurance Plan (ULIP).
When you opt for a ULIP plan, ensure that it has multiple funding options to select from. Having said that, it’ll make sure that you make an investment in the funds only based on your fund allocation and risk appetite. Moreover, check to see how many free switching options available from one fund to another.
3. Affordability
Opting for an investment policy that is affordable in nature is a different kind of happiness. This eventually leads to low charges, low deductions as well as low payment of premiums.
It is natural for investment companies to charge higher rates at the time of investment. However, it is your responsibility to not fall for it and go for plans labeled as ‘investment plans with high returns and low charges’.
4. Longevity
Longevity of your investment option should not be given a miss in the haste to selecting a product because of its offerings. This is simply because long-term investments cater to all your life goals.
In order to attain your long term financial goals, it is mandatory to station your funds in areas where they have the potential to grow. One such type of an investment plan with a longer lock-in period is a ULIP Policy. ULIPs have a lock-in period of 5 years that provides a life cover and protects your financial stability.
5. Diversity
An investment option with diversity is something to look forward to as an investor. Being an investor, you should be able to own different types of investment.
Invest in ULIPs due to its diversity in nature. It offers you with investment in different fund types like equity funds, debt funds, and balanced funds. If you have a high-risk appetite, then invest in equity funds. While debt funds promise lower risk, balanced fund promises a mixture of the two. Now that you have all the comparison points listed right in front of you, do you know where to invest money? Whatever you choose, see to it that you go for an investment option with maximum benefits and gain.