Top 5 Options for Investing Online

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Introduction

Each investor's needs and risk profiles are different. But no matter what your goals may be, and where you may fall on the risk spectrum, it is essential to pick investment options that are best suited for you. Today, it is easy enough to make the investments of your choice from the comfort of your home, because there are many assets you can buy and schemes you can join online, without having to visit any branch office whatsoever.

Why invest online?

The uptick on online investments in India shows us that an increasing number of people prefer investing online. That said, what are the advantages of online investments anyhow? Let's take a closer look at some reasons you should invest online, wherever possible.

Convenience

The first and foremost reason to invest online is the convenience it offers. You can learn all about the investment option and make your investments with just a few clicks. All you need is a smart device and a stable internet connection. And you don’t need to step out of your home at all.

Instant investments

Investing online is also near-instant in most cases. Once you have the request accounts opened (such as a bank account in case of fixed deposits or a demat and trading account for securities), you can make your investment right away online. This saves you a lot of time and effort.

Easier investment tracking

Another reason to invest online is that you can also easily track and manage your investments online. This way, you can keep an eye on how they are performing and make any changes to your portfolio if needed, in a timely manner.

5 Investments That You Can Make and Manage Entirely Online

Now that you’ve seen how investing online can be beneficial for you, you may no doubt be curious about which investments you can make and manage entirely online. If that’s what you are looking for, here are 5 investment options that fit the bill.

  • Direct equity

    Direct equity involves investing in the stock market - either through the primary or the secondary channel. The primary market is where companies issue their shares for the first time, via an Initial Public Offering (IPO). The secondary market is where the stocks already issued via an IPO are traded through stock exchanges.

    You can buy equity shares of companies online. All you need is a demat account to hold your shares in the electronic format and a trading account to facilitate buying and selling of shares. Here is a quick look at the particulars of equity investments.

    Minimum investment amount:
    There is no lower limit on the minimum amount you can invest in equity shares. It depends on your affordability and on the price of the shares you wish to invest in.

    Maximum investment amount:
    There is no specific maximum amount that you can invest in equity. That depends entirely on your financial capacity.

    Investment tenure:
    Equity stocks are liquid investments, meaning that you can sell your holdings at any time. However, they are typically ideal as long-term investments.

    Risk levels:
    Equity investments come with a high degree of risk, since the market can be volatile.

  • ULIP

    A ULIP or a Unit Linked Insurance Plan is a kind of life insurance cover that offers the dual advantage of insurance and investment under one policy. When you purchase a ULIP, you can invest in ULIP funds such as equity funds, debt funds, hybrid funds, liquid funds and more. Over the course of the policy term, the value of these investments may rise, leading to capital gains.

    ULIPs also have an insurance component that offers you a life cover. So, in case of your demise during the policy term, your nominee receives death benefits as per the terms of the plan. In return for these benefits, you need to pay an insurance premium to your insurance provider.

    Minimum investment amount:
    The minimum amount of premium varies from one plan to another, based on its features and benefits.

    Maximum investment amount:
    The maximum amount of premium that you can invest in a ULIP also varies from one plan to another.

    Investment tenure:
    ULIPs are typically long-term investments. They come with a lock-in period of 5 years. You can (and ideally should) continue to remain invested after this period too.

    Risk levels:
    ULIP funds come with varying levels of risk, based on the kind of securities and instruments they invest in.

  • Assured Income Plans

    An Assured Income Plus is also a kind of life insurance plan that you can buy online. In fact, it is a kind of savings plan that gives you two key benefits - insurance and income. The insurance component essentially refers to the life cover that protects your nominee in case of any uncertainties.

    In addition to this, an assured income plan also offers the benefit of regular income. These income payouts may begin after a specified period, and they may continue for a predetermined number of years. The assured income payouts offer some degree of stability as you approach retirement.

    Minimum investment amount:
    The minimum amount of premium varies from one assured income plan to another, based on its features and benefits.

    Maximum investment amount:
    The maximum amount of premium also changes from one assured income plan to another.

    Investment tenure:
    The tenure for this kind of savings plan is usually long-term - around 20 to 30 years or more. The exact tenure depends on the policy you choose.

    Risk levels:
    Assured income plans are well-suited to conservative investors, since they offer guaranteed income benefits.

  • Mutual Funds

    A mutual fund is a kind of investment vehicle where the capital that is pooled together from different investors is utilized to buy securities and other assets. There are different types of mutual funds such as equity funds, debt funds, money market funds, gold funds and more.

    You can invest in mutual funds easily online, through your demat account itself. That said, it is also possible to buy mutual funds online without a demat account. You can either invest a lump sum amount in the fund of your choice, or you can start a Systematic Investment Plan (SIP) to invest small sums periodically in mutual funds.

    Minimum investment amount:
    When you start an SIP, you can invest as little as Rs. 500 periodically in mutual funds.

    Maximum investment amount:
    There is no statutory limit on the maximum amount that you can invest in mutual funds online.

    Investment tenure:
    Mutual funds do not have any cap on the investment tenure. The minimum tenure is one day - in the case of overnight funds.

    Risk levels:
    Mutual funds come with varying levels of risk, based on the assets they invest in. They range from very low risk to very high risk.

  • Bank Fixed Deposits

    Fixed deposits have been around for decades now. And while it always required a manual investment procedure earlier, today, it is possible to invest in FDs online, from the comfort of your home.

    All you need to do is log into your bank’s internet banking portal and start an FD online, with just a few clicks. You can even choose the investment tenure and whether you wish to reinvest your interest or receive it as income.

    Minimum investment amount:
    You can open a fixed deposit with as little as Rs. 1,000.

    Maximum investment amount:
    Most banks do not have any upper limit on the maximum amount you can deposit.

    Investment tenure:
    The investment tenure for fixed deposits can range from 7 days to ten years.

    Risk levels:
    Fixed deposits are generally low risk investments that are ideal for conservative investors.

Conclusion

Now that you know the top 5 investment options that you can make and manage online, you can diversify your investment portfolio from the comfort of your home itself. Plus, in the case of some investments like ULIPs and other life insurance plans, online investments may be nominally more economical too. So, that’s another advantage you can benefit from.

Read next: Consider your taxes before choosing investment options

Before you go ahead and choose to invest in one or more investment options online, you also need to factor in your taxes. The gains from some investments are taxed at a specified rate, while the returns from others may be taxed as per your income slab. To know more about these details, you’re going to have to check out our blog on this subject.

Read it here

WANT TO SET UP A SOURCE OF SECONDARY INCOME? NOW, YOU CAN DO THIS EASILY ONLINE.

The ABSLI Assured Income Plus plan is a life insurance policy that you can invest in for a short period of time to enjoy the benefit of regular income over the long term. The income payout period for this plan can be as long as 20, 25 or even 30 years!

Plus, in addition to the income benefit, you also get the advantage of a life insurance cover over the entire policy term. This acts as a much-needed financial safety net for your loved ones.

The best part is that you can buy this income plan easily online, from the comfort of your home.

Know More

ABSLI Assured Income Plus (UIN: 109N127V05) is a non-linked non-participating individual life insurance savings plan.
IN ULIP POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER.
ADV/4/22-23/5

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