- Understand your risk appetite
- Diversify your portfolio
- Assess your financial goals
What is Investment Planning?
Investment Planning is the process of identifying your financial goals and creating a financial plan to achieve these goals. An individual has various types of goals based on duration, including short-term and long-term goals. Your plan should align with your financial goals.
There are various investment options available to invest your money including
Best Income Replacement Term Plans
Here is the list of the best income replacement term insurance plans:
- Stocks,
- Bonds,
- Gold,
- Fixed deposits,
- ULIPs,
- Saving and investment plans, etc.
Having a diversified portfolio helps you minimize the overall risks and maximize the returns over a period. This article offers you complete information about the best investment plans, objectives of investment planning, things to keep in mind, and mistakes to avoid.
Best Investment Plans in 2024
Here is a list of the best investment plans you can opt for in 2024:
| Name of the Plan | Entry Age | Maximum Maturity Age | Policy Term | Maturity Amount |
| Max Life Smart Wealth Plan | Min- 91 days Max- 65 years |
85 years | 6 to 20 years | Rs 25,25,720 |
| ICICI Prudential Gift-Lumpsum | Min- 18- Policy term Max- 60 years |
80 years | 5 to 20 years | Rs 23,40,571 |
| ICICI Prudential Gift-Long term | Min- 0 years Max- 60 years |
101 years | 8 to 14 years | Rs 22,90,921 |
| ICICI Pru Guaranteed Income For Tomorrow (Long-term) | Min- 0 years Max- 60 years |
101 years | 8 to 41 years | Rs 27,40,344 |
| IndiaFirst Life Money Balance Plan | Min- 5 years Max- 18 years |
75 years | 5 to 70 years | Rs 14,23,175 |
| Bharti Axa Life Wealth Pro | Min- 0 days Max- 65 years |
99 years | 10 to 30 years | Rs 13,68,641 |
The above premiums are for a 30-year-old male for a monthly premium of Rs 1 lakh and premium payment term of 10 years with total premiums of Rs 10 lakhs.
Objectives of Investment Planning
There are various objectives of Investment Planning. Here are some of these objectives:
-
To fulfill long-term financial goals
The major objective of financial planning is to fulfill long-term financial goals. These goals can be different for every individual. Some financial goals include a child’s higher education, marriage, etc. -
Retirement planning
People do investment planning to plan their retirement. At retirement age, people do not have any income source to sustain their livelihood. This amount can help them sustain their retirement age. -
To beat the current inflation rate
The inflation rate increases annually by 6 to 8%. To beat this inflation rate people do investment planning. Let’s understand how the inflation rate affects your money. Suppose you purchase a good X at Rs 100 this year. Next year its price is 107. A difference between the two prices is the inflation effect. -
To earn an additional amount
People invest their money in various assets such as stocks, gold, investment plans, etc To earn an additional income amount and grow the money over time. -
To save taxes
People do investment planning to save their taxes. You can invest your money in those assets which offer you tax-saving benefits.
How to do Investment Planning?
Here are the key things that help you do investment planning:
-
Assess your future financial goals
It is necessary to know your future financial goals. The goals can be short-term, mid-term, or long term depending on your requirements. Identifying your goals helps you decide the assets in which you should invest your money. -
Identify your current financial situation
Identify what is your monthly income, expenses, and the amount you can save for investment. Assessing these things helps you prepare a financial plan. -
Identify your risk appetite
Everyone has a different risk appetite. Some are interested in investing in high-risk assets while others are not so high-risk takers. You should identify your risk appetite and make a financial plan that suits you best. -
Make your portfolio diversified
You should make a diversified portfolio as it helps you hedge your risk and maximize your returns over a period. There may be a point when some asset classes outperform others. At that time diversification made sense.
Things to Keep in Mind While Doing Investment Planning
There are certain things that you should keep in mind while doing investment planning:
-
Create an emergency fund
You should have an emergency fund equal to 6 times your monthly expenses. An emergency fund helps you even in the hardest times. To build an emergency fund keep a certain amount out of your income every month. -
Start early
It is extremely important to start early. No matter how much amount you invest it’s important how long you invest. Starting early gives you the benefit of compounding your money over time. -
Step up your investment amount
It’s important to step up your investment amount as your income increases. An annual step has a huge impact on your maturity amount. It’s totally up to you how much you step up your investments every year. -
Invest regularly
You should invest at regular intervals as no one can time down the markets. Investing regularly gives you an edge along with minimizing the overall risks. -
Invest in dips
Buying at dips gives you an edge over other individuals. Markets are not the same every time you invest. You can invest at dips to average your investments. -
Consult your advisors
You can consult with your financial advisors for expert guidance.
Mistakes to Avoid While Doing Investment Planning
There are some mistakes you should avoid while doing your investment planning.
-
Don’t invest in recommendations
You have often heard the word ‘tip’ in the stock market. You should not invest in tips, or recommendations from friends, family, etc. Always check the associated risks and invest carefully. -
Don’t invest all your money in a single asset class
You should not put all your money in a single asset. If that asset underperforms at a time you may lose your hard-earned money. So it’s better to diversify your portfolio by investing in multiple assets. -
Review your portfolio at regular intervals
You should review your portfolio at regular intervals and make the alterations as per your requirements. Readjust it as per your financial goals. It doesn’t mean that you should stick to it every hour. -
Don’t invest based on past performers
As said ‘Past performers are not always the best performers’. You should not invest your money based on past performers. The good performers change with time. So you should make your financial analysis and invest wisely.
Conclusion
Investment planning does not require a hard and fast formula or science. It’s the consistency of staying invested and making smart financial decisions that matters in the end. To make better investments and grow your money over time, we have provided you with the list of best investment plans above.
If you are still confused about which investment plan is ideal for you as a smoker then you can contact us at PolicyX.com. One of our insurance experts will reach you shortly and help you choose the right investment plan that aligns with your requirements.
Investment Planning:FAQs
1. What is Investment Planning?
Investment Planning is the process of identifying your financial goals and creating a financial plan to achieve these goals.
2. What are some of the best investment plans I can consider to buy?
You can choose to invest in either of the following plans: Max Life Smart Wealth Plan ICICI Prudential Gift-Lumpsum ICICI Prudential Gift-Long term ICICI Pru Guaranteed Income For Tomorrow (Long-term)
3. In which assets should I invest my money?
You should diversify your asset types in your portfolio to minimize the risk and maximize the returns.
4. What are some of the assets to invest my money?
There are various assets available in the market including gold, stocks, mutual funds, investment and saving plans, etc. You can invest as per your financial requirements.
5. Should I invest in assets based on their past performance?
No. you should not invest in assets based on their past performance as it is not an accurate indicator. These asset classes may or may not outperform in the future.
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