One time Investment Plans

Empower Your Future With a Single Stroke
Empower Your Future With a Single Stroke

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Give ₹5 lakhs & for 10 years
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    4Scenario: Healthy male age 25 years, premium paying term 10 years, policy term 20 years, payment frequency annually, Sum Assured Rs. 16.2 lakhs, Premium Rs.1.2 lakhs/year excluding GST), you get Rs. 30,48,000/- by age 45

What is a One-Time Investment Plan?

A one-time investment plan is a financial strategy where an individual invests a lump sum amount of money in a particular investment vehicle or financial instrument at one go, rather than making regular, periodic contributions. This type of investment is also known as a lump sum investment.

One-time investment plans can be used for various financial products, including mutual funds, stocks, bonds, fixed deposits, and insurance policies. The choice of the investment vehicle depends on the investor's financial goals, risk tolerance, and investment horizon.

How Does a One-Time Investment Plan Work?

A One-TIme Investment Plan is a financial tool where you invest a single amount upfront, instead of making regular contributions. These plans offer various investment options, each with its own potential returns and risks. Here’s how an OTIP typically works:

  • Choosing an Investment Product:
    OTIPs can be part of various options like mutual funds, insurance plans, stocks, bonds, and more. Each option carries its own potential returns and risks.

  • Making the Investment:
    You invest your desired lump-sum amount in a single transaction.

  • Compounding and Growth:
    Your investment has the potential to compound over time. Compounding means your returns also earn returns, potentially snowballing your investment's growth.

Example:
Let's say you invest ₹100,000 in a one-time investment mutual fund with an average annual return of 8%. Over five years, your investment could potentially grow to around ₹146,933. This growth is due to both your initial investment and the returns being reinvested throughout that time.

Features and Benefits of One-Time Investment Plans:

One-Time Investment Plans (OTIPs) offer several unique advantages:

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Single Investment:
Invest your entire desired amount at once, eliminating the need for recurring contributions.
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Potential for Higher Returns:
OTIPs can benefit from the power of compounding, where your returns also earn returns, potentially boosting your overall growth over time compared to regular smaller investments made later.
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Variety of Options:
Choose from various investment options like mutual funds, bonds, stocks, and insurance plans, allowing you to tailor the plan to your risk tolerance and financial goals.
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Convenience:
Set up your OTIP once and leave it to work its magic. This can simplify your investment management compared to actively managing regular contributions.
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Potentially Lower Transaction Fees:
Compared to regular investments with frequent transactions, OTIPs often involve a single transaction fee, potentially saving you money in the long run.

Remember, while OTIPs offer benefits, it's crucial to understand the associated risks before investing. Consider seeking professional financial advice to ensure an OTIP aligns with your individual financial goals and risk tolerance.

Factors to Consider Before Investing in a One-Time Investment Plan:

Before diving into a One-Time Investment Plan (OTIP), it's essential to weigh various factors to ensure it aligns well with your financial situation and goals. Here are some key aspects to consider:

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Investment Horizon:
How long do you plan to invest your money? OTIPs are generally suitable for medium to long-term goals (5+ years). Shorter timeframes may expose you to greater market volatility.
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Risk Tolerance:
How comfortable are you with potential fluctuations in the value of your investment? OTIPs can involve higher risks compared to safer options like fixed deposits.
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Financial Goals:
What are you saving for? OTIPs can be a good fit for various goals, but it's vital to choose an option compatible with your specific needs.
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Investment Expertise:
Do you have a basic understanding of different investment options and their associated risks? Consulting a financial advisor can be beneficial if you're new to investing.
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Emergency Fund:
Do you have a readily accessible emergency fund to cover unexpected expenses? It's crucial to have a safety net before investing any funds you might need in the short term.
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Tax Implications:
Research the tax implications of different OTIP options. Some plans may offer tax benefits*, while others may not.

Remember, choosing the right OTIP is a personal decision. Carefully consider these factors and consult a financial advisor if needed to make an informed decision that aligns with your individual financial circumstances and future aspirations.

Who Needs a One-Time Investment Plan?

One-Time Investment Plans (OTIPs) can be a valuable tool for various individuals with specific financial goals and situations. Here's a table illustrating how different types of people can benefit from an OTIP:

Personal Description Why an OTIP is Beneficial
Young Professional Recently graduated and starting their career, they have a long investment horizon. OTIPs allow them to invest a lump sum (e.g., bonus or inheritance) and benefit from compounding over the long term for future goals like retirement or a down payment on a house.
Risk-Averse Investor Prefers stable returns and wants to diversify their portfolio. OTIPs can be used to invest in lower-risk options like fixed-income securities within the plan, offering a potential for steady growth with reduced volatility compared to solely investing in stocks.
NRI (Non-Resident Indian) Lives and works abroad but wants to invest in India. OTIPs offer a convenient way to invest a lump sum in India without having to manage regular contributions from abroad.
Approaching Retirement Looking to grow their retirement nest egg. OTIPs can be used to invest in assets with potentially higher returns compared to safer options, aiming to boost their retirement corpus while still managing the investment timeframe.
Inherited a Windfall Recently received a large sum of money (e.g., inheritance or lottery winnings). OTIPs allow them to invest the entire sum at once, potentially maximizing potential returns over time while they plan for the future use of the money.

Top 10 One-Time Investment Options in India

Investment Type Risk Profile Investment Horizon Potential Returns Liquidity
Mutual Funds (Equity) High Long-term (> 10 years) High potential, but also high volatility Medium
Mutual Funds (Debt) Low to Medium Short-term (< 5 years) to Long-term (> 10 years) Lower potential than equity, but generally more stable Medium
Mutual Funds (Balanced) Medium Medium-term (5-10 years) to Long-term (> 10 years) Aims for a balance between potential growth and stability Medium
Fixed Deposits (FDs) Low Short-term (< 5 years) Guaranteed# returns, but typically lower than other options High
Unit Linked Insurance Plans (ULIPs) Medium to High Long-term (> 10 years) Combines investment and insurance benefits, potential for market-linked returns Medium to Low (depending on plan)
National Pension System (NPS) Low to Medium Long-term (> 10 years) Tax-advantaged retirement savings option, limited investment choices Low (locked until retirement)
Gold Medium to High Long-term (> 10 years) Considered a hedge against inflation, price fluctuations possible Medium (depends on selling method)
Real Estate Investment Trusts (REITs) Medium to High Long-term (> 10 years) Potential for income generation and capital appreciation, less liquid than other options Low (investments are tradable on stock exchanges, but selling may not be immediate)

FAQs

What is a One-Time Investment Plan (OTIP)?
An OTIP is a financial strategy where you invest a single, lump-sum amount into a chosen financial product like a mutual fund, fixed deposit, or insurance plan. Your money then has the potential to grow over a set period.
How do OTIPs differ from regular investment plans?
Traditional investment plans often involve making smaller, regular contributions (monthly, quarterly, etc.). With an OTIP, you put in your entire investment amount at once.
What are the benefits of OTIPs?
Potential for higher returns through compounding, convenience, flexibility (in some plans), and the ability to tailor them to specific goals.
What are some risks associated with OTIPs?
Market fluctuations can impact your investment value, and some OTIPs may have lock-in periods restricting access to your funds.
Who might benefit from an OTIP?
Individuals with a lump sum to invest, long-term investment horizons, and a tolerance for potential market risks.
What factors should I consider before investing in an OTIP?
Investment horizon, risk tolerance, financial goals, investment expertise, emergency fund, and tax implications.
Can I withdraw money from an OTIP?
Withdrawal options vary depending on the chosen plan. Some may offer partial withdrawals after a lock-in period, while others may have restrictions.
Are OTIPs guaranteed# to generate returns?
No, OTIPs are not guaranteed#. The potential returns depend on the chosen investment option and market performance.
What are the fees associated with OTIPs?
Fees can vary depending on the plan and investment option. It's important to research and compare fees before making a decision.
Do I need a financial advisor to invest in an OTIP?
Consulting a financial advisor can be beneficial, especially if you are new to investing or need help choosing the right OTIP for your needs. They can provide personalized guidance based on your specific circumstances.
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  • Disclaimer

    *Tax benefits are subject to changes in tax laws. Kindly consult your financial advisor for more details
    #Provided all due premiums are paid.
    1 Scenario: 25 year old male investing in Assured Savings Plan, PPT: Single Pay, Policy term – 10 years, Single Premium - 5,00,000. Maturity Benefit - 8,71,250, Sum Assured - 7,50,000.
    ABSLI Assured Savings Plan - This policy is underwritten by Aditya Birla Sun Life Insurance Company Limited (ABSLI). This is a Non-Linked Non-Participating Individual Savings Life Insurance Plan. All terms & conditions are guaranteed throughout the policy term. GST and any other applicable taxes will be added (extra) to Your premium and levied as per extant tax laws. An extra premium may be charged as per our then existing underwriting guidelines for substandard lives, smokers or people having hazardous occupations etc. All policy benefits are subject to policy being In-force. Customer Helpline Numbers: 1-800-270-7000 (Toll Free) between 10 am to 7 pm (UIN: 109N134V08).
    In the Unit Linked Policy, the investment risk in the investment portfolio is borne by the Policyholder.
    Linked Life insurance products are different from the traditional life insurance products and are subject to the risk factors.
    Linked Insurance Products do not offer any liquidity during the first five years of the contract.
    The policyholder will not be able to withdraw/surrender the monies invested in Linked Insurance Products completely or partially till the end of the fifth year from inception. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document. The premium paid in unit linked life insurance policies are subject to investment risk associated with equity markets and the unit price of the units may go up or down based on the performance of fund and factors influencing the capital market and the policyholder is responsible for his/her decisions. Tax benefits may be available as per prevailing tax laws. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding the sale.
    ADV/7/23-24/1085