The Golden Rule For Investing in The Year 2024
Updated On Jan 19, 2024
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Every new year, we create resolutions to save money for the future. One of the best ways to create a corpus of funds and ensure financial stability in the future is "investment." In India, numerous investment options are available, including life insurance, ULIP plans, mutual funds, digital gold, and many others that can help you save money in 2024. Therefore, it becomes gruelling to choose the best investment plan. Don’t worry! We’ve got you covered. Continue reading the article to find out the best ways to invest money for the future in 2023, along with the golden rules for investing money in 2024.
Best Investment Plan For 2024 in India
Smart investment secures the future of you and your loved ones financially. Listed below are some of the best investment options to save money and accomplish your future financial goals.
- Term Life Insurance Plans:
Term insurance is an ideal choice for those who are looking for a short-term savings option. It is a life insurance product that provides financial protection to the insured for a certain duration. The insurance company pays the beneficiary the death benefit if the insured person passes away during the period of the policy. In addition to this, the policyholders can plan their financial goals, such as their children's education, marriage, purchasing property, and various other objectives.
- Mutual Fund Investments:
Equity mutual funds are a good option if you're searching for a low-risk, profitable investment option that doesn't require active management. It is a type of investment that collects money from many different investors and utilises it to buy stocks or other securities. Investment in mutual funds will increase the value of its investments over time to increase investors’ returns. Equity mutual funds are a wise choice for investors, as in exchange for minimal fees, you gain exposure to a variety of equities or securities. Moreover, they are managed by experienced fund managers, so you don’t have to invest your time.
- Public Provident Funds:
The best place to invest money for retirement is through Public Provident Funds (PPF). It is the safest investment option that lets individuals create a corpus return on investment. As it is regulated by the Government of India, the benefits will be paid by the government if anything happens to your investments. Another advantage is that investment in PPF provides various tax benefits. Tax advantages worth up to INR 1.5 lakhs are available, however, only with the condition that the money will be held for 15 years.
- Gold:
Gold investment never fails to give the best return on investment. Money can lose value due to inflation and currency depreciation, whereas gold keeps its value no matter how the economy is doing. Therefore, if you invest in gold, your purchasing power will be maintained even in difficult times.
- Unit Linked Life Insurance Products:
Don’t we love offers like “buy one, get one free”? ULIPs are the ones that provide dual benefits to the policyholders. ULIP plans are a combination of life insurance and investment plans. This means that, in addition to providing financial security for your loved ones, ULIPs can help you build wealth. A portion of the regular payments made by the policyholders is allocated towards the life insurance and the other one to the investment portfolio chosen by you.
Golden Rules For Investing Money in 2024
While making an investment strategy, a few things should be kept in mind in order to make 2023 a profitable and prosperous year. Listed below are some of the golden rules of investing.
- Set Your Financial Goals:
Prior to investing in a particular asset, it's crucial to think about your investment objectives and assess whether the financial instrument is a good fit for you. For instance, some financial instruments might be more appropriate for long-term investments while others might be more appropriate for short-term investments.
- Do Your Research:
Depending on your financial goals, choose the investment plan that is most suitable for you. In addition to this, it's crucial to do your homework on the risks associated with investing before putting money into any financial instruments. Furthermore, understand the workings of the different options available in India and invest your money accordingly.
- Understand Your Financial Limitations:
Knowing your financial limitations is essential before investing in any instrument. It will stop you from making impulsive purchases and assist you in making the best choice possible when investing in any specific instrument.
- Risk Management:
You compare and choose the financial instruments depending on your ability to bear the risk. You can put your money into either high-return, high-risk investments or low-return, low-risk investments.
Conclusion
You can use financial instruments to invest and make money. However, you must remember that each instrument carries a certain amount of risk. Therefore, before investing in any financial instrument, be sure to consider your investment objective, risk appetite, and savings duration. Additionally, you can create a better investment strategy by consulting with your financial advisor.
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