1800-270-7000
Aditya Birla Sun Life Insurance Company Limited
Aditya Birla Sun Life Insurance Company Limited
Long Term Investment Plans
Your Path To Financial Abundance
Give ₹1.2 lakhs/year for 12
years and Get Guaranteed2
Benefit of ₹44.64 lakhs1
Features of Long-Term Investment Plans
Compounding Growth
The ability to earn returns on your returns, leading to exponential growth over time.
Diversification
Spreading investments across various asset classes to reduce risk and optimize returns.
Tax Advantages
Many long-term investment plans offer tax benefits*, such as tax-deferred growth or tax-free withdrawals.
Flexibility
Options to adjust your investment portfolio based on changing financial goals or market conditions.
Regular Contributions
The ability to make periodic investments, facilitating disciplined savings and dollar-cost averaging.
Professional Management
Access to expert fund managers who oversee the investment portfolio, especially in managed funds.
Liquidity
While long-term investments are intended for the future, some plans offer partial withdrawal options for financial emergencies.
Automatic Reinvestment
Dividends or interest earned can be automatically reinvested to further fuel growth.
When to Choose Long-Term Investment Above Short-Term Investment?
Deciding between a long term investment plan and a short-term investment depends on your financial goals, risk tolerance, and timeline. Here are scenarios where opting for long-term investments is the smarter choice:
When You Have Long-Term Financial Goals
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If your objectives include funding retirement, buying a home, or saving for your child’s education, a long term investment plan is ideal.
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These plans help you accumulate wealth steadily over time, aligning with significant future milestones.
When You Can Tolerate Risk
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Long-term investments, like equities or mutual funds, offer higher returns but may involve short-term volatility.
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If you have the patience to ride out market fluctuations, you can benefit from the compounding effect and market growth.
When Tax Efficiency Matters
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Many long term investment plans in India offer tax-saving benefits subject to Section 80C, making them a cost-effective way to grow wealth.
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Instruments like PPFs, ELSS funds, and ULIPs are tax-efficient options for long-term investors.
When Building a Financial Cushion
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Long-term plans provide a financial safety net for unexpected life events or economic downturns.
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Having a diversified portfolio in long term investment plans in India ensures stability and consistent growth over decades.
When You Want to Maximise Returns
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The compounding effect significantly boosts returns for long-term investments compared to short-term plans.
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For instance, investing in equities over 10-15 years often outperforms shorter-duration options like fixed deposits or bonds.
Strategies for Long-Term Investments
A successful long term investment plan requires discipline, planning, and the right strategies. Here are actionable steps to optimise your long-term investments:
Set Clear Financial Goals
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Define your investment objectives, such as retirement savings, wealth creation, or funding major life events.
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Align your goals with the timeline and risk level of your chosen long term investment plans in India.
Diversify Your Portfolio
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Spread your investments across various asset classes like equities, bonds, mutual funds, and real estate.
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Diversification reduces risk while ensuring balanced growth over time.
Leverage the Power of Compounding
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Reinvest your returns to maximise the compounding effect, allowing your money to grow exponentially over time.
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Start investing early to take full advantage of this phenomenon.
Stay Consistent with SIPs
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Systematic Investment Plans (SIPs) in mutual funds are an excellent way to build wealth steadily.
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Regular contributions reduce the impact of market volatility, making them ideal for long-term investments.
Focus on Low-Cost Investments
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Minimise fees and expenses by choosing low-cost index funds, ETFs, or direct mutual fund plans.
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Lower costs ensure a greater portion of your returns is reinvested, boosting long-term gains.
Monitor and Rebalance
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Periodically review your portfolio to ensure it aligns with your financial goals.
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Rebalance your investments to adjust for market changes or shifts in risk tolerance.
Avoid Emotional Decisions
-Long-term investing requires patience and discipline. Avoid making impulsive decisions based on market fluctuations.
- Stick to your investment strategy and trust the process for consistent growth.
Choose Reputable Plans
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Opt for trusted long term investment plans in India with a proven track record of stability and returns.
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Research options like PPF, NPS, ULIPs, and equity mutual funds to find the best fit for your goals.
By following these strategies, you can optimise your long-term investment journey, ensuring financial stability and significant wealth accumulation over time.
8 Benefits of Long-Term Investment Plans
Wealth Accumulation
Provides a structured approach to building substantial wealth over time.
Inflation Hedge
Long-term investments, especially those in equities, have the potential to outpace inflation, preserving purchasing power.
Retirement Readiness
Helps ensure financial security in retirement, allowing for a comfortable lifestyle without the need for active income.
Goal Achievement
Facilitates the realization of major life goals, such as buying a home, funding education, or leaving a legacy.
Risk Mitigation
The extended investment horizon allows for riding out market volatility, reducing the impact of short-term fluctuations.
Tax Efficiency
Offers tax benefits* that can enhance overall returns, such as tax deductions on contributions and tax-free growth.
Disciplined Saving
Encourages regular savings habits, making it easier to stay committed to financial goals.
Legacy Planning
Provides an avenue for estate planning, ensuring that wealth is passed on to future generations in a tax-efficient manner.
Who Should Consider Long-Term Investment Plans?
Young Investors
Individuals in their 20s or 30s with a long investment horizon can benefit from the compounding growth offered by long-term plans.
Retirement Savers
Those looking to build a substantial retirement fund to ensure financial security in their later years.
Goal-Oriented Individuals
People saving for specific long-term goals, such as purchasing a home, funding a child's education, or leaving a legacy.
Risk-Tolerant Investors
Individuals comfortable with market fluctuations and willing to invest in higher-risk assets for potentially higher returns.
Wealth Builders
Those seeking to accumulate wealth over time and willing to stay invested through market ups and downs.
How to Buy a Long-Term Investment Plan?
Define Your Goals
Clearly outline your long-term financial objectives and the time frame you have to achieve them.
Assess Your Risk Tolerance
Determine your comfort level with investment risk to choose a plan that aligns with your risk profile.
Research Options
Explore various long-term investment plans offered by financial institutions, focusing on their features, benefits, and past performance.
Consult a Financial Advisor
Seek professional advice to get personalized recommendations based on your financial situation and goals.
Choose a Plan
Select a long-term investment plan that suits your objectives, risk tolerance, and investment horizon.
Complete the Application
Fill out the application form, providing all necessary personal and financial information.
Make the Initial Investment
Pay the initial contribution as required by the plan, which could be a lump sum or the first installment of a regular contribution schedule.
Set Up Regular Contributions
If the plan allows or requires regular contributions, set up automatic payments to ensure consistent investing.
Monitor and Review
Regularly review your investment plan's performance and make adjustments as needed based on changes in your financial goals or market conditions.
Stay Committed
Maintain a long-term perspective and avoid making impulsive decisions based on short-term market fluctuations.
FAQs on Long Term Investment Plan
Equity-based investments like stocks and mutual funds usually offer higher returns over the long term, though they come with some risk.
Long-term investing helps you ride out market ups and downs and gives your money more time to grow through compounding.
A long-term investment is one where you stay invested for at least 5 years or more. It’s meant to help grow your wealth steadily over time.
Your financial goals, level of comfort with taking risks, and length of time horizon are some of the elements that should be considered while selecting the "best" long-term investment. Nevertheless, the following are some examples of long-term investment possibilities that are frequently suggested:
- The Stock Market: Throughout history, stocks have generated strong long-term returns, despite the fact that they are associated with more volatility.
- Bonds: Bonds are seen as having a lower level of risk than stocks, and they provide a regular and stable income. They may be appropriate for investors with a moderate risk tolerance.
- Mutual Funds: Mutual funds allow investors to spread their risk by combining their money with that of other investors. They provide access to a diverse range of assets, including equities, bonds, and commodities, among others.
- Real Estate: An investment in real estate, whether it be residential or commercial properties, has the potential to produce long-term appreciation as well as prospective rental income.
- Contributions to Retirement Accounts: Making contributions to retirement accounts such as NPS can bring tax benefits* and the opportunity for long-term development.
When opposed to investing for a shorter period of time, long-term investing is generally considered to be connected with a higher level of safety. Having said that, keep in mind that there is always a degree of risk associated with any investment you make. Investing for the long term can provide prospects for growth and compounding, but investing for the short term might be susceptible to market changes and economic conditions, which can have an effect on the value of investments. It is absolutely necessary to maintain a diversified investment portfolio, to carry out exhaustive research, and to make financial decisions based on your comfort level with risk and your long-term monetary objectives.
Investing for the long term has a number of positive aspects, but it also has a number of negative aspects, including the following:
- Lower Liquidity: Long-term investments are often less liquid than short-term investments, which means that it may be difficult to access your assets quickly without suffering fines or selling at rates that are unfavourable to you.
- Volatility in the Market: Long-term investments are susceptible to market volatility, and the value of investments can suffer both increases and decreases over time. The ability to endure short-term volatility is essential for investors to have.
- The cost of missed possibilities When you invest money for the long term, that money might not be available for other opportunities that could present itself in the interim. This is known as the opportunity cost.
- The risk of inflation: Over the long term, inflation might cause your investments to lose their purchasing value. It is essential to give serious consideration to investments that come with the possibility of outpacing inflation.
To get started with investing for the long term, consider the following steps:
- Establish Crystal Clear Financial Objectives: Determine Your Financial Objectives, as well as a Time Horizon for Achieving Those Objectives.
- Evaluate Your Tolerance For Risk: In order to identify the optimal asset allocation for your investment portfolio, you should first evaluate your tolerance for risk.
- Carry Out Research: Educate yourself about the many investing possibilities available, and get familiar with the risks and potential returns associated with each.
- Make a Budget: Create a budget and determine the amount of money that you are able to invest on a regular basis while remaining within your financial means. Establish a Financial Investment Account To establish a financial investment account, select a reputed financial institution or brokerage firm.
- Diversify Your Portfolio: To lower your exposure to risk, you should disperse your investments over a variety of asset classes.
- Remain Informed: Continuously monitor your investments, remain current on market developments, and perform periodic portfolio reviews.
In addition to the stock market, the following are some more examples of secure long-term investments:
- Bonds: Bonds issued by the government or high-quality corporations offer a fixed income and are generally seen as being less volatile than other investment options.
- Real Estate: Putting money into income-producing real estate or real estate investment trusts (REITs) is one way to secure your financial future and perhaps increase your wealth over the long run.
- Certificate of Deposit (CD): Certificates of deposit (CDs) provide stability and predictable returns by offering a fixed interest rate for a predetermined period of time and are insured by both the government and the RBI.
- Stocks That Pay Dividends: Certain stocks that have a track record of continuously paying dividends are ones that can offer both stability and the possibility of income.
- Index Funds: Index funds are mutual funds that monitor specific market indices and offer both diversification and stability due to the fact that they are composed of a wide variety of equities and bonds.
- Annuities: Annuities are insurance products that offer a guaranteed# income stream for a set period of time or for life, giving stability and predictable returns. Annuities can be purchased for a specific amount of time or for the rest of one's life. One of the options that you should consider for your retirement savings is a guaranteed# investment plan.
- Debt Securities: Due to the fact that the government guarantees debt securities like treasury bonds, notes, and bills, these types of investments are seen as having a low level of risk.
- Commodities: Commodities such as gold and silver, which have a long history of serving as a buffer against inflation and other forms of economic unpredictability, are examples of the types of investments that are suitable for the long term.
It is essential to keep in mind that there are no guarantees in the world of investing, even while it is true that long-term investment methods have the potential to be profitable. The performance of life insurance investment plans can be affected by a variety of factors, including market conditions, economic considerations, and individual circumstances.
Nevertheless, investing for the long term has always been associated with prospects for growth, compounding, and the possibility of wealth building. Investors have a better chance of weathering the short-term market swings and profiting from the overall expansion of the market if they maintain their investment positions over a longer time period.
It is of the utmost importance to carry out exhaustive research, diversify your portfolio, and routinely analyse and modify your investments in response to the shifting conditions that may arise. In addition to providing useful insights, seeking the counsel of a financial advisor can assist in the process of optimising your long-term investment strategy.
Keep in mind that there is always the potential for loss while investing, and that previous performance is not necessarily indicative of future outcomes. It is crucial to base investment decisions on your personal financial circumstances, level of comfort with taking risks, and desired outcomes for the long run.
*Tax benefits are subject to changes in tax laws. Kindly consult your financial advisor for more details
1Scenario: Healthy male age 21 years, premium paying term 12 years, policy term 13 years, benefit payout period 20 years, payment frequency annually, Assured Benefit Option: Income with Lumpsum Benefit, Sum Assured Rs.16.68 lakhs, Premium Rs.1.2 lakhs/ year- excluding GST), you get Rs. Rs. 44.64 lakhs (1.37 Lakh p.a. from 14th policy year for 20 years plus 17.28 Lakhs as lumpsum) by age 54 2Provided all due premiums are paid.
ABSLI Assured Income Plus Plan is a Non-Linked Non-Participating Individual Savings Life Insurance Plan (UIN: 109N127V17). Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insurer carrying on life insurance business. If your policy offers guaranteed benefits then these will be clearly marked “guaranteed” in the illustration table on this page. If your policy offers variable benefits then the illustrations on this page will show two different rates of assumed future investment returns. These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back, as the value of your policy is dependent on a number of factors including future investment performance.
ABSLI Vision LifeIncome Plan: This policy is underwritten by Aditya Birla Sun Life Insurance Company Limited (ABSLI). This is a traditional participating endowment plan. All terms & conditions are guaranteed throughout the policy term, except for the bonuses which would be declared at the end of each financial year. UIN: 109N079V07
ABSLI Wealth Aspire Plan is a non-participating unit linked life insurance plan. (UIN:109L100V05)
ABSLI Wealth Aspire Plan is only the name of Company and Policy respectively and do not in any way indicate their quality, future prospects or returns. The name of the funds offered in this plan does not in any way indicate their quality, future prospects or returns. The charges are guaranteed throughout the term of the policy unless specifically mentioned and subject to IRDAI approval. The value of the segregated fund reflects the value of the underlying investments. These investments are subject to market risks and change in fundamentals such as tax rates etc affecting the investment portfolio. The premium paid in unit linked life insurance policies are subject to investment risk associated with capital markets and the unit price of the units may go up or down based on the performance of segregated fund and factors influencing the capital market and the policyholder is responsible for his/her decisions. There is no guarantee or assurance of returns above the guaranteed returns from the segregated funds. GST and any other applicable taxes levied as per extant tax laws shall be deducted from the premium or from the allotted units as applicable. An extra premium may be charged as per our then existing underwriting guidelines for substandard lives. Linked Life insurance products are different from the traditional life insurance products and are subject to the risk factors. Past performance of the Unit Linked fund of the company is not necessarily indicative of the future performance of any of these Unit linked fund(s). For further details please refer to the policy contract. Tax benefits are subject to changes in the tax laws" For more details and clarification call your ABSLI Insurance Advisor or visit our website and see how we can help in making your dreams come true. Insurance is the subject matter of solicitation.
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