Which Financial Investments should you choose?

  • Savings Plan Articles

The primary intention behind investing one's money is to see it grow. Wealth augmented over months and years can accumulate into a handsome sum of money for the future. However, it is not enough to merely set a sum aside from the monthly income in lieu of savings. It is equally important to invest one's money in the right financial instrument.

We present 7 good investment options:

  • Savings bank account: This is often the first financial product people are exposed to. The first bank account one opens is normally the savings bank account. It offers a rate of interest of up to 5% and most banks insist on a minimum balance per month in the account.

  • Fixed Deposits (FDs): These are investment plans by which a person may deposit a sum of money in the bank for a minimum of 30 days and maximum of five years. The bank pays interest on the money (about 7.5% to 8%, while up to 10% for senior citizens) at the time of maturity of the FD. It is recommended to keep the FD live for at least 1 year to earn an appreciable amount of interest on it.

  • Money market funds: These are open ended liquid mutual funds that are short term in nature. They are invested for a very short period of time. Their primary purpose is to earn income on the capital to grow the investor's wealth. Several banks now allow customers to issue cheques from their money market fund accounts. The Birla Sun Life Cash Plus is an excellent money market fund to try.

  • Public Provident Fund (PPF): This is one of the most popular investment options in India. It offers a high 11% post tax return, and is extremely low risk in nature. Also, it is one of the most affordable investments: you can deposit a minimum of Rs 500 per year to keep the fund active, and maximum of Rs 1,00,000 per year. However, you can withdraw money from it not before the seventh year of the fund begins.

  • Post Office Savings Schemes (POSS): These are normally more preferred over FDs, and they have a component of a monthly income plan. This is a useful feature for retired or unemployed individuals. It is also preferred because no TDS (Tax Deducted at Source) is cut on it. Under POSS, customers can opt for various schemes such as NSC (National Savings Certificate), Recurring Deposit (RD) and Kisan Vikas Patra, among others.

  • Life Insurance: These offer a maturity and death benefit, and 8 to 9.5% returns post-tax. Besides, they help protect one against future financial burdens. They can be purchased to coincide with important life goals and future expenses such as children's education, retirement and hospitalisation corpus.

  • Mutual Funds:This is one of the most affordable and best investment options in India today. They offer investors the chance to make an income on a diversified fund portfolio with a limited investment. Also, those who do not wish to invest large sums of money for the fund can take the SIP (Systematic Investment Plan) route. Though there is low to moderate risk with mutual funds, an experienced fund manager handling the portfolio manages it expertly to minimise risk. Birla Sun Life Mutual Fund's diverse range of mutual funds solutions offers the best investment options in India.

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Savings Products

ABSLI Assured Income Plus

Invest for a short term, get guaranteed returns for a long term. UIN 109N127V03

  • Guaranteed3 returns on your investment
  • Long term regular income
  • Tax Benefits1

ABSLI Savings Plan

Get life cover and build a substantial corpus to ensure a secure financial future for your loved ones. UIN: 109N088V02

  • Additional Sum Assured on accidental death
  • Bonuses2 to boost your savings
  • Guaranteed3 Additions

ABSLI Vision LifeIncome Plan

Get life cover till the age of 100 as well as an assured income to achieve your financial goals UIN: 109N079V05

  • Get flexibility to receive payouts
  • Life cover till age 100 years
  • Minimum entry age is 30 days

ABSLI Guaranteed Milestone Plan

Guarantee your family’s happiness with life insurance and a savings corpus that fulfils their needs. UIN: 109N106V08

  • Fully guaranteed benefits3
  • Guaranteed3 Additions to boost your corpus
  • Sum Assured of 15 times the annual premium

ABSLI SecurePlus Plan

Secure your finances with life insurance cover and the advantage of a second income stream UIN:109N102V03

  • Flexibility in selecting annual premium
  • Flexibility to choose the Income Benefits
  • Inbuilt Accidental Death Benefit

ABSLI Vision MoneyBack Plus Plan

Pay-outs at regular intervals, coupled with life protection, help you to achieve your life goals. UIN: 109N093V04

  • Financial protection of your family
  • Regular payouts
  • Tax Benefits1

ABSLI Vision LifeSecure Plan

Ensure long-term financial security for your family with this savings-focused life insurance plan.

  • Life Cover till age 100 years
  • Maturity benefit at the end of policy term
  • Regular bonuses2

ABSLI Monthly Income Plan

Enjoy the twin benefits of adequate life cover and a tax-free monthly income till maturity. UIN: 109N122V02

  • Bonuses2 to augment your savings
  • Choice of Level and Increasing Income Benefit Options
  • Monthly income benefit

ABSLI Income Assured Plan

This plan offers life insurance cover and an assured monthly income for you and your family. UIN: 109N089V06

  • Assured monthly income
  • Life cover
  • Tax Benefit1

ABSLI Vision Endowment Plus Plan

This plan pays out regular bonuses and offers return of premium at maturity. UIN: 109N092V04

  • Accrued regular bonuses2
  • Choice of 2 death benefit options
  • Minimum entry age is 30 days

ABSLI Jeevan Bachat Plan

Get triple advantage of life cover, guaranteed returns and tax benefits. UIN: 109N107V03

  • Guaranteed3 benefits on death or maturity
  • Inbuilt accidental death benefit
  • No medical tests

ABSLI Assured FlexiSavings Plan

Unlock the flexibility to withdraw and lock in guaranteed returns along with a life cover. UIN 109N126V02

  • Guaranteed3 returns on your investment
  • Flexibility of unlimited withdrawals
  • Tax Benefits1

ABSLI Vision LifeIncome Plus Plan

Get guaranteed regular income, cash-in-hand even while paying premiums PLUS life cover up to a maximum of age 100 UIN: 109N131V01

  • *Guaranteed regular income for a period you choose
  • Option to get cash-in-hand even while paying premiums
  • Life cover up to a maximum of age 100

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