Portfolio Management: 5 Must Have Investments/Insurance Products For Every Individual
Individuals are often confused when it comes to Investments. It is primarily due to the fact that you have got scores of financial products offered by various BFSI companies in the market and also their respective marketing team chasing you to Invest in the same. Thus, in this article I will discuss the 5 most popular investment options which every Individual should try to include in their portfolio. I won’t cover any specific Financial Product in this post but will only touch upon the specific categories under which one can or should invest.
The most important thing which one should keep in mind while building their portfolio is to diversify funds into various Investment avenues. This not only helps in mitigating the risk but also ensures that you are able to reap benefits from diversified investment sources. Hence, I’m listing some of the most common form of Investments which Individuals may consider for Investing.
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Investment in Equity Mutual Funds is one of the best options in my opinion. It may involve a bit of risk but in the long run would provide the best return on Investment. SIP is very popular form of investment and since these funds are managed by Professional Fund Managers you can be rest assured of decent Return on Investment in the longer run. Individuals may also make lumpsum investment in the Scheme.
Retirement benefits should also be planned while you are young and earning. NPS launched by the government is a decent option to vest your money as the fund is performing pretty well and is professionally managed by fund managers. On attaining the age of 60, individual can invest certain percentage of the corpus in purchasing a pension annuity while rest can be withdrawn as lumpsum.
It is one of the most crucial aspects which one should never ignore while planning your Investment/Insurance portfolio. I suggest each individual should take both the Cashless as well as the Critical Care cover. It will ensure that you and your family are having adequate cover in case any major illness befalls on them or you.
Cashless Insurance will take care of minor hospitalization expenses and treatment, operation which may be required by an individual or their family members, while Critical Illness Insurance will provide you with a lumpsum in the unfortunate case of your loved ones suffering any major illness.
PPF will offer you the peace of mind. As the investment will earn fixed rate of interest as and when declared by the government and is devoid of any risk. The ROI (Return on Investment) and if you continue investing for 20-25 years, then you will be able to accumulate fair amount of capital in the end.
Term Insurance is the cheapest Life Insurance Cover which every individual should avail as it is offers high insurance cover at very low premiums. Since it is a pure insurance policy it does not have any maturity value but in case of demise of the policy holder the nominee is paid the entire sum assured. Some policies offer additional death benefits coverage which may prove to be beneficial for your loved ones. So one needs to plan properly before opting for a Term Plan.
Thus, In my opinion these are the 5 must have Insurance/Investment cover which every Individual must have in his/her portfolio to ensure that they are able to accumulate decent capital over a period of time along with adequate insurance cover.