What are Good Investment Options for a First Time Investors?

What are Good Investment Options for a First Time Investors?

Today, it has become difficult to manage our and our family’s day-to-day expenses and save an ideal amount for the future due to rising inflation rates and cost of living. Relying solely on our savings is not enough for our family and us. Investing in good investment options has seen a rise in the past couple of years as a means of financial security, especially after the impact of Covid-19. This ensures that you do not face any financial hassle in case of an unforeseen event and can continue with your life easily.

If you are investing in an investment plan for the first time, you might face difficulty in choosing an ideal plan for yourself and your family. To help you out, we have prepared a conclusive guide that talks about a few good investment options for first-time investors.

5 Good Investment Options for First Time Investors

1. Unit Linked Insurance Plan (ULIP)

Unit Linked Insurance Plan(ULIP) is a good investment option in today’s time. This plan comes with dual benefits of investment and insurance. In other words, you can financially secure your family and yourself and can generate wealth by investing your money in market-related options, such as stocks, shares, equity, etc. This plan offers tax benefits of up to Rs. 1.5 lakhs in one financial year under Section 80C of the Income Tax Act, 1961.

2. Public Provident Fund (PPF)

Public Provident Fund (PPF) is another good investment option for first-time investors. This plan comes with a lock-in period of 15 years, though you can partially withdraw the money in case of a financial emergency after the 7th year of the policy. This plan provides financial security to you and your family and ensures that you are able to fight the rising cost of inflation in the long run. Apart from this, PPF offers tax benefits of upto Rs. 1.5 lakhs in one financial year under Section 80C of the Income Tax Act, 1961.

3. National Pension Scheme (NPS)

National Pension Scheme (NPS) is one of the best retirement plans to invest in. This plan offers you monthly incomes after you retire, ensuring that you and your family are financially secure and do not have to worry about what’s coming. This plan offers you tax benefits of up to 10% tax deductions to salaried employees and offers tax deductions of Rs. 1.5 lakhs in a financial year under section 80CCD (1) of the Indian Income Tax Act, 196, subject to conditions mentioned therein. However, tax laws are subject to change from time to time.

Fixed Deposits (FD)

Fixed Deposits (FD) is another good investment options to invest in today’s time. They are ideal for investors who do not want to take the market-related risk and are looking for short-term investment plans. As the name suggests, this plan also offers fixed returns and security of funds. The returns are not affected by market depreciation, thus being one of the safest investment plans in India. This plan offers tax deduction benefits of Rs. 1.5 lakhs in a financial year under Section 80C of the Income Tax Act, 1961.

Fixed Deposits (FD)

Mutual Funds are an ideal investment option for first-time investors. Though this plan involves a certain amount of risk, investors can save a lump sum amount for the future with this plan. This investment plan is basically a financial pool wherein the investors can invest their money in market-related options, such as stocks, bonds, etc. The investor can claim the tax benefits of RS. 1.5 lakhs in one financial year by investing in ELSS under Section 80C of the Income Tax Act, 1961. However, tax laws are subject to change from time to time.

Investors who are investing for the first time often find it difficult to choose a good investment option for themselves and their families. With the right knowledge, it can be an easy and seamless task.

Disclaimer:

The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

Suggested Plans

Bharti AXA Life Guaranteed Wealth Pro

  • A non-linked, non-participating individual savings life insurance plan
  • Flexibility to choose the payout structure
  • Multiple income options
  • Option to receive tax free income beginning from the second policy year itself
  • Option to get lifelong income along with life cover till 100 years of age

Bharti AXA Life Flexi Term Pro

  • A Non-linked, Individual, Non-participating Pure Risk Premium Life Insurance policy
  • The plan offers two options: Without Return of Premium and With Return of Premium
  • Under the Without Return of Premium variant, you have the option between Single Life cover or Joint Life Cover i.e., cover for your spouse under the same policy.
  • Flexibility in policy and premium payment terms

Bharti AXA Life Super Series

  • A non-linked non-participating individual life insurance savings plan
  • Range of investment duration and returns
  • Guaranteed money back benefits (provided policy is in force and all due premiums have been paid)
  • Income tax benefits (as prevailing tax laws in India that are subject to changes)