Portfolio Management: 5 Must Have Investments For Every Individual
Individuals are often confused when it comes to Investments. It is primarily due to the fact that wide range of products is available for investment. Individuals are often influenced by friends, relatives or even the promotional campaigns used by the BFSI (Banking, Financial Services and Insurance) companies. Thus, in this post I will discuss the 5 most popular Investment Product which every Individual should try to include in their portfolio. The aim is to ensure an ideal balance between Investment, Insurance, Risk and Return.
The most important aspect which one should keep in mind while managing 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 optimum return from the diversification of the Funds.
Investment in Equity Mutual Funds is one of the best options in my opinion. It may involve moderate risk but in the long run would provide the decent return on Investment. SIP (Systematic Investment Plan) is very popular form of investment. These funds are managed by Professional Fund Managers which helps in better management of funds. Individuals may also make lump sum investment in the Funds.
Retirement Planning should also be chalked out 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 which 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the age of 60, individual can invest certain percentage of the corpus in purchasing a pension annuity while rest can be withdrawn as lump sum.
It is one of the most crucial aspect which one should never ignore while planning your Investment/Insurance portfolio. I recommend individuals to opt for both the Cashless as well as the Critical Care cover. It will provide adequate financial cover in case of any medical exigency.
Cashless Insurance will take care of minor hospitalization expenses and treatment, or even operations which may be required by an individual or their respective family members, while Critical Illness Insurance will provide you with a lump sum benefit in the unfortunate case of your loved ones suffering from 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) is decent and one can accumulate fairly large deposits if remain invested for long.
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.
One may opt for the Term Plan as per the cover best suited for the individual.
Thus, In my opinion these are the 5 must have Insurance/Investment plans 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.