Life Maximisers dreams demand Goal-Based Investment options
Last few years have witnessed a fundamental shift in the life goals of young Indians. World travel before turning 30 years, launching a dream start-up at 35 years or taking a two-year break to finish that novel or the desire to retire early are just a few examples of the new aspirations of new age Indians.
A recent survey conducted by us amongst the life maximisers, as we call them, clearly suggested this change in life goals. We reached out to individuals across the key metros and Pune, Bengaluru, Hyderabad and Ahmedabad. Almost 80% of them indicated that while they would like to focus on their children’s education or retirement fund, they didn’t mind taking a bit of a risk for their start-up, feel secure with a kitty of their 1st Crore in ten years, or have emergency fund that they could dip into whenever needed.
So, as a life maximiser, how can you meet your new age life goals?
The conventional investment habit to build physical assets is now shifting towards strengthening the financial assets one owns. We are seeing considerable flows into markets and for the new aspirational Indian, it is turning out to be an attractive option because of the returns over a long-term.
However, before one goes into the market, having a goal-based approach is advisable. Simply put, the strategy is a backward approach to the end-goal. Know the whole value of the goal and have target time period of achieving it.
There are several investment options available, but try and opt for those where the hard-work is done by your money. Options that are long-term (5-10 years or above) not only bring in a disciplined approach to your investment, it allows you to take advantage of the power of compounding of your money, rupee cost averaging of your units and make life a little simpler for you.
Various investment options, such as Unit Linked Investment Plans (ULIPs), are available in the markets today that allow young Indians to live the life of their dreams. What is crucial is to invest smartly with discipline and to start early. Putting aside Rs 3,000 a month in a ULIP to have enough corpus to start your own venture after 10 years, is doable. It’s simple and secure.
As new-age retail investors emerge, several organisations are offering new age investment solutions to meet the needs of these investors. A little research and with the help of innumerable investment calculators will allow you to invest specifically for your life goal.
While being financially wise, a disciplined approach to investments will come a long way to achieving your goals.
Executive Business Manager - (Agency Sales ) at PNB METLIFE Insurance co.
6 年Saving money aside, smart tax planning is an integral part of sensible financial planning. The average investor enjoys numerous tax-saving options like PFs and PPFs, life insurance plans, ELSS investments, ULIPs and more. When comparing different instruments, it is always advisable to choose an option that offers the combined benefits of wealth protection, value appreciation, strategic flexibility, and tax savings. A traditional insurance plan offers life protection and tax benefits with very little scope for wealth creation. Mutual funds, on the other hand, offer good returns with zero life protection and restricted tax-saving opportunities. Conservative tax savings options like PFs are unlikely to generate inflation-proof real returns over the long run. ULIPs are a useful financial tool that can be used to bridge the gap between the various investment options along with the added advantage of significant tax savings.
Executive Business Manager - (Agency Sales ) at PNB METLIFE Insurance co.
6 年Amidst all this, life insurance products such as unit linked insurance plan (Ulip) can be considered a more reliable wealth creation solution over the long term, keeping in mind the returns, protection and tax savings, all combined in one product. Amongst several investor friendly features, one of the unique propositions of Ulip is that it permits investing one’s premium in a mix of debt and equity funds in varying proportions, allowing inter-fund transfers through switches and all this with no tax liability. Ulip, as an investment option, stands out from all other market-linked investments, as the gains from even a debt fund in Ulip are tax-free in the hands of the investor.
Executive Business Manager - (Agency Sales ) at PNB METLIFE Insurance co.
6 年Amidst all this, life insurance products such as unit linked insurance plan (Ulip) can be considered a more reliable wealth creation solution over the long term, keeping in mind the returns, protection and tax savings, all combined in one product. Amongst several investor friendly features, one of the unique propositions of Ulip is that it permits investing one’s premium in a mix of debt and equity funds in varying proportions, allowing inter-fund transfers through switches and all this with no tax liability. Ulip, as an investment option, stands out from all other market-linked investments, as the gains from even a debt fund in Ulip are tax-free in the hands of the investor.
Executive Business Manager - (Agency Sales ) at PNB METLIFE Insurance co.
6 年Sir, Totally I am agree with you. As apart from spending habits demonetisation has affected the available investment options as well. Banks, flush with funds now, have already started decreasing interest rates on fixed deposits and are expected to lower them further. Life insurance it seems is becoming a preferred option for investors.
Executive Business Manager - (Agency Sales ) at PNB METLIFE Insurance co.
6 年Sir, Totally I am agree with you. As apart from spending habits demonetisation has affected the available investment options as well. Banks, flush with funds now, have already started decreasing interest rates on fixed deposits and are expected to lower them further. Life insurance it seems is becoming a preferred option for investors.