5 investment instruments to help you achieve financial independence

Are you among the 63% Indians who diligently invest their money in order to achieve financial freedom? Or do you belong to those 55% who feel that they lack enough knowledge about finances to make the right choice? Or perhaps you identify with the rest of the 62 percent who are confident that a little guidance in money management would go a long way to help them.

Whatever the case, the figures above highlight that when you invest keeping your future goals in mind, you can rest assured that you are on the road to financial independence. So don’t let the lack of confidence in financial investments hold you back. Learn more about them to understand which investment tool could help your money grow.

Here are a few choices to help you make your decision:

1. ULIPs:

Nitesh had been pooling his savings in tax saving FDs for 2 years now. He was looking to invest further. He found the stock market alluring but feared he might make a loss. At the same time, he knew that fixed income instruments could only give him marginal inflation adjusted returns. When he discussed his dilemma with Satyen, his office colleague,Satyen suggested that Nitesh invest in ULIPs, a great tool for investment that also come with insurance. Moreover, an investor saves tax not only on the premium paid but also the maturity amount. ULIPs available on Bajaj Markets allow you to save towards different goals. Go for the Investment plan for creating wealth, Retirement plan for a comfortable life in your 60s and the Child plan to fund the education needs of your children. There is something for everyone!

2. Fixed deposit:

Even if you are new to finances, you can easily open a fixed deposit with as less as Rs. 1000 and start investing. Go for the cumulative option if you require money at regular intervals, but if you want to generate wealth over a long-term period, the non- cumulative option is for you. It helps you maximize your returns at maturity by reinvesting the interest on the principal amount. Financial investments such as fixed deposits come with little or no risk and are a great start for beginner to the world of investing.

3. National Pension scheme:

Launched in 2004 for government employees, anyone who is an Indian citizen between 18 to 60 years can subscribe to the National Pension scheme or NPS. If you are looking for financial freedom in your old age, your future self will thank you for investing your savings in NPS during your working life. And why not? You can save tax upto Rs 50,000 on the amount invested in NPS. This is over and above the Rs 1.5lakh allowed under Section 80C making NPS even more attractive. Choose a portfolio as per your risk appetite and get started.

Source: www.timesofindia.com

4. Life insurance:

Have you ever wondered how your family would be able to handle their day to day living expenses, leave alone realize their dreams, if you are not around someday? If you are the only earning member of the family, it is your responsibility to get life insurance in order to secure the future of your family. Insuring your life is one of the topmost financial investments since it not only secures the future of your loved ones but also gives you the peace of mind that they are taken care of. And when it comes at a nominal cost, can you say no to it?

5. Mutual funds:

If your financial goals are ambitious, you cannot reap higher returns by just putting your money in safe avenues. A little risk taking is important especially in your working years. Mutual funds allow you to take advantage of market fluctuations without direct transactions in shares and can be your ticket to financial freedom. Choose funds as per your risk appetite between equity, debt and hybrid plans and diversify to minimize your losses. Did you know that you can avail tax benefits by investing in ELSS mutual funds? Isn’t that wonderful?

It is integral that you thoroughly research all the financial instruments available at your disposal and make an informed decision. To get you started off, you can check out the ULIPs available on Bajaj Markets. They can give you up to 25 percent returns over 5 years and that too tax free! You do not have to pay any charges towards fund allocation and also get to decide between 4 investment portfolios. So whether you want to plan for your child’s education, a comfortable retirement or a dream home for yourself, all your wishes can come true when you start investing in a ULIP available on Bajaj Markets.

Bajaj Markets, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Bajaj Markets, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Bajaj Markets App.