5 Benefits of Monthly Investment Plans
The Power of Compounding:It is said that the power of compounding is the 8th wonder of the world. Since the returns from your investment depend directly on how long you are invested for, it is very important to start as soon as possible. Mr Amit who understood the importance of this was able earn 88,000 more by starting his investment just 2 years earlier than Mr. Balaji.
For example: Mr. Amit started investing 2,000 monthly today & 7 years later, his investment grew to 2.44 lakhs with the power of compounding. Whereas, Mr. Balaji started investing 2 years later and his investment grew to only 1.56 lakhs. Mr. Balaji could have earned 88,000 more had he not delayed his investment by 2 years.
Rupee Cost Averaging:It is impossible to time the market for the best time to invest and that is why most people tend to delay their investments. Monthly investment plans uses rupee cost averaging which does not require the investor to wait for a good time to start investing. Rupee cost averaging evens out market ups and downs in the long run and allows you to get a better return on the investment over a period of time. By investing a fixed amount of money every month, you buy more units when prices are low and fewer units when prices are high. Therefore your final weighted average cost remains lower than the average unit price.
Convenience:You can send a one-time instruction to their bank to facilitate auto debit from your savings account, credit card or debit card and can, thus, make investments without worrying about missing the investment due date. You can even buy monthly investment plans online in the comfort of your home. It would just take about 10 minutes of your time.
Disciplined Saving:Discipline is the most important thing when it comes to making any investment. Many times, people start investing with great enthusiasm but fail to keep the pace with the time. Instead of investing a lump sum amount, you can invest a smaller amount every month which is easier to do. Since the monthly investments happen automatically & you don’t need to interfere regularly, you can continue saving for a long time and your money can grow a lot faster.
Tax Planning:Monthly investment can make your tax saving targets easy to achieve every year. All you need to do is to buy a monthly investment plan, set up auto debit instructions online and you are good to go!
When you choose ULIPs as your preferred monthly investment option, you get all this and more!
4 reasons why people choose ULIPs as their preferred monthly investment option
Affordable premiums:With ULIPs, the minimum premium starts from as low as 2,000 per month.
Fund switches:To make the most of your investment you can switch your money between funds at will
Partial Withdrawal:Starting from the sixth year, you can withdraw up to 20% of your investments in ULIPs provided monies are not in Discontinued Policy fund to meet any future needs and let the remaining investment grow.
Life Cover:With a life cover in-built in ULIPs, you get much more than just a great investment option. In case of an unfortunate event, your family will be paid a lumpsum amount to secure their financial future.
How to buy online?
*Subject to realisation of payment and documents.
Tax benefits under the policy are subject to conditions under Sec. 80C and Sec 10(10D) of the Income Tax Act, 1961. Service tax and applicable cesses will be charged extra as per applicable rates. Tax laws are subject to amendments from time to time.
Unlike traditional products, Unit linked insurance products are subject to market risk, which affect the Net Asset Values & the customer shall be responsible for his/her decision. The names of the Company, Product names or fund options do not indicate their quality or future guidance on returns. Funds do not offer guaranteed or assured returns.
Unit linked Insurance products do not offer any liquidity during the first five years of the contract. The Policyholder will not be able to surrender/withdraw the monies invested in unit linked insurance products completely or partially till the end of the fifth year.
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