What are One Time Investment Plans? Know How to Invest and Get Returns
In today’s day and time, at one end, you will find people who are content with their routine jobs and the stability that it offers, while at the other end, you will have people who feel that a mundane 9 to 5 job is insufficient to enable them to live the kind of life they desire. As a result, you will come across a bunch of people who are a part of the hustle culture. It is so because it allows you to use the resources at your disposal in collaboration with your skills to generate revenue that would not otherwise be possible with a typical job.
With the current state of the economy, it is more crucial than ever to protect your assets and find strategies to accumulate wealth for the future or for emergencies such as the covid-19 pandemic. Ergo, if you have a significant amount of funds and are looking to invest it in order to earn higher returns, a one time investment plan is the one for you! Continue reading to learn how to invest in a one-time investment plan and enjoy the benefits. But first, let’s start with learning what one-time investment plans are.
What are One Time Investment Plans?
One-time investment plans are choices that enable investors to make a single investment and generate wealth over a set period. In plain terms, you can invest a large sum of money in one-time investment plans and get returns on the principal amount over time. This type of investment opportunity is best suited for those with a high-risk tolerance. Thus, if you want to invest a big sum in one go rather than making monthly payments, one-time investment plans are the way to go!
Types of One-Time Investment Plans
There are various types of one time investment plans available in the market. Let us have a look at some of the most common ones in the following section.
1. Equity Funds
Direct market investments are one of the most prevalent investing options, but they involve a higher level of risk. Thus, equity funds are often chosen over direct market investments due to the lesser risks involved, good management by specialists and professionals, and diversification.
Furthermore, by investing in ELSS, or Equity-Linked Savings Schemes, you can benefit from tax savings under Section 80C. The best duration for investing in ELSS (which has a 3-year lock-in period) is 5 years or more. As a result, you can save up to Rs 1.5 lakhs in tax deductions under Section 80C.
2. Debt Funds
It is understandable if you want to invest a substantial amount of money in one go, but not for a very long duration of time. Thus, one time investment plans such as debt funds are ideal if you wish for a lock-in period of more than 3 years but not more than 5 years. However, it is important to note that where you will manage to get a stable amount of returns on your investment, you will nevertheless have to face tax implications, unlike equity funds. Although, if you have a lower risk appetite, then it carries a much lesser level of risk than equity funds.
3. Liquid Funds
Investments don’t necessarily require you to get higher returns after a set time frame. In the case of liquid funds, you can save your money for a period of time rather than spending it on something unnecessary or if you are unsure of which one-time investment plan is the one for you. This will allow you to safeguard your money and explore one-time investment plans to invest in for accumulating wealth.
4. Liquid Mutual Funds to ULIPs
If you’ve been investing for a while, you’ve probably heard about ULIPs. Don’t worry if you haven’t. ULIPs enable investors to invest while also receiving a life insurance policy that protects the policyholder’s family members in the event of their demise. To calculate the annual premium and identify a suitable insurance plan, you must utilize a ULIP calculator. You can also save money on taxes with a ULIP plan. However, it is recommended to use a ULIP calculator to determine the premium value in order to receive the tax benefit.
5. Liquid Mutual Funds to Equity Funds
As was previously mentioned, equity funds carry lesser risks while investing than direct market investments. However, it is essential to know that it is affected by price fluctuations. It is therefore recommended to approach equity funds with a more strategic plan to enjoy the advantages of rupee cost averaging no matter the conditions of the market.
6. Liquid Mutual Funds to Other Investments
The best one-time investment plans, such as this one, allow you to establish other investment options, such as the National Pension Savings System or the Personal Retirement Savings Account, which might enable you to save tax as well.
Conclusion
Be sure to read and understand the terms and conditions of each of the one-time investment plans to choose the best investment option for yourself.
