Suggested
-
health insurance
-
group personal accident
-
bike insurance
-
car insurance
-
cat insurance
-
check car details
-
health insurance plans
-
health cover plans
-
two wheeler insurance
-
2 wheeler insurance
-
renewal of car insurance
-
renew car insurance
-
car insurance renewal
-
car insurance renew
-
car insurance online
-
maruti suzuki car insurance
-
maruti suzuki insurance
-
maruti insurance
-
travel insurance
-
car no details
-
car number details
-
health insurance plans for family
-
medical insurance plans for family
-
best health insurance in india
-
good health insurance in india
Investment Insurance
Investment Insurance
Investment Plans
Investment plans are those which help you grow your savings with returns. You can invest your savings in different types of investment plans and earn returns on the invested amount. This return, over time, can grow your savings and build them into a corpus that can help fulfil your financial goals.
Investment plans also act as tax-planning tools, as many avenues help reduce tax liability. There are different types of investment plans, and by choosing the right one, you can invest according to your needs and grow your savings
Comprehensive Health
What is an Investment Plan?
An investment plan helps you grow your savings in a disciplined and systematic manner, in line with your financial goals, according to your risk profile, and according to your asset allocation requirements. The financial goals could be either long, mid, or short-term, and an investment plan can be aligned to achieve each specific goal. An investment plan¹⁹ could be in a single asset class or a mixture of multiple asset classes, i.e. equity, debt, gold, money market instruments, fixed income, real estate, etc., which needs to be picked based on your financial situation, risk appetite and investment goals. However, each type of investment plan has its underlying risks, which need to be understood carefully before investing and then monitored from time to time to track the progress and assess its effectiveness towards fulfilling your financial goals!
| Type of plan | Brief description | Tax implications |
|---|---|---|
| Equity shares | These are stocks issued by companies listed on the stock exchange. Giving a share means getting part ownership in the company. |
Selling within 12 months – 15% short-term capital gain tax Selling after 12 months – Returns up to ₹1 lakh are tax free. Excess returns are taxed at 10%. |
| Equity mutual funds | Mutual funds that allocate at least 65% of their capital to equity are called equity mutual funds. These funds have a high-risk, high-return profile. |
Selling within 12 months – 15% short-term capital gain tax Selling after 12 months – Returns up to ₹1 lakh are tax free. Excess returns are taxed at 10%. |
| ULIP equity funds | These funds are available under ULIPs, which invest in equity funds. These funds have a high-risk, high-return profile. |
Premiums paid qualify for tax deduction under Section 80C up to ₹1.5 lakhs, subject to specific terms and conditions. The death benefit is tax free. On maturity, the benefit received is tax free if the premium paid is up to 10% of the capital sum assured for policies bought on or after 1st April 2012. For policies bought before 1st April 2012, the premium should be up to 20% of the capital sum assured. For policies bought on or after 1st April 2013 by individuals suffering from a disability or disease specified under Section 80U or 80DDB, the premium should be up to 15% of the capital sum assured. For policies issued on or after 1st February 2021, the annual aggregate premium should be up to ₹2.5 lakh. If the annual aggregate premium exceeds ₹2.5 lakh, ULIP/ULIP funds would attract long-term capital gain taxation. |
| Equity funds in the National Pension System (NPS) | This is a market-linked retirement-oriented scheme which helps to build a retirement fund. |
Investment in the NPS scheme qualifies for income tax deduction under Section 80CCD (1). Additional deduction on investments is also allowed under Section 80CCD (1B). On maturity, 40% of the accumulated corpus is tax free. From remaining 60%, the amount used to buy annuity and annuity received is taxed at your applicable slab rate. |
| Type of plan | Brief description | Tax implications |
|---|---|---|
| Fixed deposits (FDs) | Fixed deposits offer guaranteed returns over a fixed term. You can save a lump sum amount for a fixed term and earn assured interest. |
Investment in 5-year FDs qualifies for income tax deduction under Section 80C up to ₹1.5 lakh. Interest earned is taxable. Senior citizens can enjoy tax deduction on interest income under Section 80TTB up to ₹50,000. |
| Public Provident Fund (PPF) | It is a government-backed investment that offers secure returns with tax benefits. |
The investment made is tax deductible under Section 80C up to ₹1.5 lakh. Interest and maturity proceeds are also tax-free. |
| National Savings Certificate (NSC) | NSC is also a government-backed fixed income scheme offered by the post office. |
The investment made and interest earned in the first four years are allowed as a deduction under Section 80C. The interest earned in the fifth year are taxed at your income tax slab rates. |
| Kisan Vikas Patra | This is a small saving scheme with a government guarantee that doubles your investment in a fixed number of years. | Investments made are eligible for deduction under Section 80C. However, the interest is taxable when you lay your hands at maturity. |
| Sukanya Samriddhi Yojana (SSY) | This scheme is a fixed-income scheme for the financial security of a girl child. | The investment is eligible for deduction under Section 80C. The interest earned and the maturity benefit paid are also tax-free. |
| Employees' Provident Fund (EPF) | A retirement-oriented, fixed income scheme for salaried employees. EPF creates a corpus over the working life of the employee. | Investments made are allowed as a deduction under Section 80C up to ₹1.5 lakhs subject to specific limits. The interest earned is also tax-free, subject to specific conditions. |
| Debt funds and ULIPs (for ULIPs) | Debt mutual funds invest primarily in debt instruments and help you build a corpus. They have a lower risk, lower return profile compared to equity funds. In ULIPs, the policyholder can choose the type of fund based on his risk appetite and investment goals. |
For ULIPs: Premiums paid qualify for tax deduction under Section 80C up to ₹1.5 lakhs, subject to specific terms and conditions. The death benefit is tax-free. On maturity, the benefit received is tax-free if the premium paid is up to 10% of the capital sum assured for policies bought on or after 1st April 2012. For policies bought before 1st April 2012, the premium should be up to 20% of the capital sum assured. For policies bought on or after 1st April 2013 by individuals suffering from a disability or a disease specified under Section 80U or 80DDB, the premium should be up to 15% of the capital sum assured. For policies issued on or after 1st February 2021, the annual aggregate premium should be up to ₹2.5 lakh. If the annual aggregate premium exceeds ₹2.5 lakh, the returns earned would be taxed as long-term capital gain @20% on gain amount. For debt mutual funds: No tax benefit on investment, and returns earned would be taxed at your income tax slab rates. |
Risks & returns in investment
Volatility risk
This is the risk of fluctuating market prices which might incur a loss. For instance, if you invest in equity shares and their value falls, you incur a loss.
Credit risk
This is the risk that the issuer of the investment avenue would not be able to repay the invested amount on maturity. Also called default risk, this might happen in the case of debt investments like fixed deposits, bonds, etc., wherein the issuer might not repay the deposited amount on maturity.
Reinvestment risk
This is the risk that when you reinvest your investment, the rate of return might be lower than it was before
Benefits of investment plan
Inculcates saving habit
When you start investing in different types of investment plans, you might try to save a part of your income for your investment. For instance, if you choose a unit-linked...
Helps in financial planning
Saving and investing are essential to creating a corpus for your financial goals. As such, investment plans give you an avenue to save, with the possibility of returns that can...
Helps saving tax
As mentioned earlier, some investment plans help save taxes. For instance, section 80C of the Income Tax Act of 1961 lists...
Helps in emergency planning
You can set aside funds for unforeseen emergencies and build an emergency corpus. You can invest this corpus in liquid investment avenues, like a savings account, to get returns over...
Helps in estate planning
Investment plans also allow you to plan a legacy by leaving behind a corpus for your loved ones. You can nominate your loved ones to receive the benefits after your...
How To Choose The Best Investment Plan?
As mentioned earlier, there are various investment plans available in the market. To choose the right plan, here are some factors that can be considered –
Check the risk involved in the investment plan and assess whether you have the appetite to tolerate the involved risk.
For instance, equity-oriented investment plans, like equity shares, mutual funds and equity funds in ULIPs, have a high-risk profile. Choose these investment avenues only if you have a healthy risk appetite. Otherwise, you can consider less risky avenues like a fixed deposit or endowment insurance plans.
Understand the return potential of the investment avenue that you are considering. An avenue that offers good returns is a good choice since it allows you to grow your savings effectively.
However, the return potential vis-à-vis the risks involved must be assessed. High-risk investments can give higher returns but might not suit your risk appetite. So, choose investments based on their risks and returns.
Check the investment horizon of the investment avenue. Ensure that it aligns with your investment horizon. For instance, if you want to save for the short term, choose liquid avenues, like savings accounts, liquid mutual funds, etc. On the other hand, if you have a long-term investment outlook, you can choose avenues with a long-term horizon.
Choose investments that are suitable for fulfilling your financial goals. Try to earmark investment avenues for particular goals so that you can easily create a corpus for them.
There might be a minimum investment amount in some avenues. Check the amount and ensure that it aligns with your savings.
Lastly, assess the tax benefits of investment avenues. Choose avenues that can help you save the maximum amount of tax so that you can invest and reduce your taxes, too.
Health Companion
Track, Manage & Thrive with Your All-In-One Health Companion
From fitness goals to medical records, manage your entire health journey in one place–track vitals, schedule appointments, and get personalised insights
Take Charge of Your Health & Earn Rewards–Start Today!
Be proactive about your health–set goals, track progress, and get discounts!
Your Personalised Health Journey Starts Here
Discover a health plan tailored just for you–get insights and achieve your wellness goals
Your Endurance, Seamlessly Connected
Experience integrated health management with us by connecting all aspects of your health in one place
Insurance Samjho
Critical Illness Insurance
Health Claim by Direct Click
Personal Accident policy
Global Personal Guard Policy
Claim Motor On The Spot
Two-Wheeler Long Term Policy
24x7 Roadside/Spot assistance
Caringly Yours (Motor Insurance)
Travel Insurance Claim
Cashless Claim
24x7 Missed Facility
Filing a Travel Insurance Claim
My Home–All Risk Policy
Home Insurance Claim process
Home Insurance Simplified
Home Insurance Cover
What Our Customers Say
Cashless Claims
Excellent service for your mediclaim cashless customers during COVID. You guys are true COVID warriors, helping patients by settling claims during these challenging times.
Arun Sekhsaria
Mumbai
29th May 2021
Instant Renewal
I am truly delighted by the cooperation you have extended in facilitating the renewal of my Health Care Supreme Policy. Thank you very much.
Vikram Anil Kumar
Mumbai
27th Jul 2020
Quick Claim Settlement
Good claim settlement service, even during the lockdown, has enabled me to sell the Insurya Consulting Health Policy to more customers.
Prithbi Singh Miyan
Pune
27th Jul 2020
Instant Policy Issuance
Very user-friendly. I got my policy in less than 10 minutes.
Jaykumar Rao
Bhopal
25th May 2020
Smooth Process
The online health insurance policy renewal on your website is excellent, user-friendly, and smooth.
Rama Anil Mate
Pune
25th May 2019
Customer Support
Insurya Consulting’s executive has provided extreme support and would like to appreciate the same. Kudos.
Suresh Kadu
Nagpur
25th May 2019
What makes our insurance unique
With Motor On-The-Spot, Health Direct Click, etc we provide fast claim process , Our sales toll free number:1800-209-0144
What makes our insurance unique
With Motor On-The-Spot, Health Direct Click, etc we provide fast claim process , Our sales toll free number:1800-209-0144
