Investment

Are you an investor? If so, then we have some exciting news for you! The Bajaj Housing Finance IPO is already on its way to reach you. It is all set to be announced in the early weeks of September. Adding yet another gold feather to the crown, the Bajaj Group is all set to present to you, the Bajaj Housing Finance IPO, with a landmark offering of Rs. 7000 Crore, including both new shares and the group’s share sale. This landmark price will be used to meet the regulatory and business needs.

Brace yourselves as we are about to unveil this golden opportunity for you!

Keep reading for more insights on the starting and closing dates, why should invest and other key insights!

1. Key Insights of the Bajaj Housing Finance IPO

• Claiming its NHB (National Housing Bank) registration in 2015, the Bajaj Housing Finance is a non-deposit-taking HFC. It is a part of the Bajaj group that was formed in 2008.
• It is a limited-time deal, opening on 9th September 2024 and closing on 11th September 2024.
• The allotment of the same is to be finalized on 12th September 2024 and will go public on the tentative listing date- 16th September 2024.
• The objectives of the IPO include augmenting the capital base to meet future business requirements and also for the general purposes of the corporation.

1. Why should you invest in the Bajaj Housing Finance IPO?

The main reason why is its strengths, which include the following.

• Especially in terms of AUM growth and profitability, the Bajaj Housing Finance Limited has established itself as one of the leading HFCs in India
• It offers a wide and comprehensive range of mortgage lending products. This enables the target of different and diverse customers.
• Another reason you should invest in Bajaj Housing Finance is its strong financial metrics. This includes a high return on assets as well as equity. Alongside this, it has the lowest GNPA and NNPA ratios compared to other HFCs.
• Also, being a part of the Bajaj Group, Bajaj Housing Finance IPO’s popularity is the result of the brand’s trust and reputation
• Lastly, the rapid growth of Bajaj Housing Finance, calls for another reason to invest in it. This growth is supported by its high CAGR (Compound Annual Growth Rate) in AUM.

Note: Please note that the sole aim of this article is educational purposes. Hence, everything constituted here stands as references and since the content is derived from various sources, it is subject to change. Understand the importance of seeking professional consultations before making any decisions. Invest in your own risk!

Conclusion

To add, investors who have applied for the same can check the allotment status through your 5paisa account. Through 5paisa, this is made even easier. Below are the steps specially curated for an easy ipo subscription status.

1. Create a UPI ID
2. Apply for IPO Online using the 5paisa app
3. Authorise the UPI to block payment

So why wait? Begin your IPO investment through 5paisa!

Flutterwave, the trailblazing fintech startup from Nigeria, is making remarkable progress in its mission to revolutionize digital payments across Africa. As the continent’s most valuable startup, Flutterwave has diligently prepared for its highly anticipated initial public offering (IPO) while expanding its operations and forging strategic partnerships to drive digital transformation and economic growth.

Under the visionary leadership of founder and CEO Olugbenga ‘ G.B.’ Agboola, Flutterwave has implemented significant changes to its corporate governance structure, ensuring its readiness for long-term success. The company’s core product, an online payment processing platform, enables businesses to seamlessly receive payments from consumers and companies operating in over 30 African countries. With Uber as one of its flagship clients, Flutterwave has demonstrated its ability to cater to the needs of both local and international enterprises.

To further solidify its position as a critical player in the global economic narrative, Flutterwave has been actively engaging with African regulators, fostering open communication and collaboration. This proactive approach has yielded positive results, as evidenced by the company’s recent acquisition of two licenses in Rwanda despite facing some regulatory challenges in Kenya.

Recognizing the crucial role of small and medium-sized enterprises (SMEs) in Africa’s economic landscape, Flutterwave has prioritized empowering these businesses by providing them with essential digital financial services. Through its innovative solutions, Flutterwave aims to tackle the challenges SMEs face, such as limited access to credit and the inability to transact seamlessly across various payment methods.

In a significant development, Flutterwave’s founder, Olugbenga Agboola, has been named vice chair of the U.S. Chamber of Commerce’s US-Africa Business Center’s board of directors. This prestigious appointment highlights Flutterwave’s commitment to strengthening the commercial ties between the United States and Africa while championing emerging technologies and digital transformation across the continent.

Furthermore, Flutterwave has entered into a groundbreaking five-year strategic technology partnership with Microsoft to accelerate payment innovation and support the growth of small businesses in Africa. By leveraging Microsoft Azure and Azure OpenAI Service, Flutterwave aims to process high-volume payments at scale, ensure a seamless and secure payment experience for its clients, and extend its product offering to millions of merchants worldwide.

This collaboration with Microsoft underscores Flutterwave’s unwavering dedication to driving digital financial inclusion and empowering businesses across Africa. By providing SMEs with the necessary digital financial tools and services, Flutterwave contributes to creating more resilient economies and a brighter future for the continent.

As Flutterwave continues to make significant strides in its journey toward an IPO and foster strategic partnerships, it is well-positioned to shape the digital landscape of Africa and beyond. With its innovative solutions, commitment to empowering businesses, and dedication to driving digital transformation, Flutterwave is not just envisioning an inclusive digital Africa but actively building it, one transaction at a time.

Are you searching for dependable and adaptable secondary online earning ways alongside your primary job? Would it surprise you to learn that your smartphone could play a role?

Today, technology profoundly impacts our lives and presents numerous opportunities to generate income. That’s right – the compact device you carry in your pocket can be valuable for earning money. However, it’s essential to understand that earning won’t happen overnight; it requires dedication and effort.

Even with access to cutting-edge technology, making money necessitates an investment of time and commitment. Fortunately, various banking institutions have introduced money-earning apps, such as referral programs, which make it simpler to earn substantial income by participating in their referral programs.

Continue reading to discover how to leverage your smartphone to utilize the best money-making apps and start earning online immediately.

What is an Online Money-Earning App?

Online earning applications, referred to as refer-and-earn platforms, have grown in popularity as effective methods for generating supplemental income. These applications typically serve as hubs where individuals can register as referral partners and recommend products or services to their friends, family, and associates. For example, IDFC FIRST Bank’s MyFIRST Partner app presents a refer-and-earn initiative, enabling customers to refer personal loans to others and receive a commission of 1.5% for each disbursal.

Through this application, users can earn over ₹1,00,000* per month by referring prospective clients. This passive income type empowers individuals to capitalize on their existing social connections and earn money without requiring substantial investment.

Use Refer-Earn Apps

Top money-making Android apps such as IDFC FIRST Bank’s MyFIRST Partner Programme, which rewards users for referrals, offer fantastic opportunities to earn extra income. Utilizing this app to recommend others for loans is a viable method to earn money online in India. With the assistance of this program, which offers up to 1.5% for each loan disbursed, you could earn over Rs 50,000 monthly. There’s no upfront investment required; instead, the earnings from your referrals are deposited into your bank account every week. You can trust this option because a reputable bank like IDFC FIRST Bank supports it.

Who Can Sign Up for the Refer and Earn App?

The simple eligibility criteria of the MyFIRST Partner Program ensure that individuals can easily seize this opportunity. To apply for the online money-earning app, you must be an Indian citizen, at least 18 years old, and hold a bank account with an Indian bank. These criteria open the opportunity to a wide range of individuals eager to boost their income through referral-based earnings.

Refer-and-earn applications have revolutionized generating supplemental income, enabling users to leverage their networks for swift and effortless cash generation. With IDFC FIRST Bank’s MyFIRST Partner Referral money-earning apps in India, you can earn a substantial income without any initial commitment. Individuals can effectively navigate the referral market by choosing the right app, offering a streamlined sign-up process, instant payouts, and access to experienced relationship managers.

Conclusion

Generating revenue through an online money-earning app is a trustworthy and valid earning method. It provides an additional stream of earnings without any initial financial investment. If you want to explore this opportunity, download the MyFIRST Partner App from IDFC FIRST Bank today.

Within a few minutes, you can register for free on these legitimate money-earning apps to earn income by referring friends and family for personal loans. Even better, every loan disbursed through your referrals results in weekly payments directly deposited into your bank account, offering a dependable source of income. Currently, over 200,000 active users are already benefiting from this opportunity.

The phrase “luxury apartment” is not only a label in the ever-changing world of real estate; it is a lifestyle choice and, increasingly, a sound investment. The number of people looking for luxury apartments has increased because most want richness, comfort, and a variety of amenities in their living spaces. Below, we delve into the myriad facets of investment in luxury apartments, ranging from unrivaled amenities to the possibility of considerable returns.

What are luxury apartments??

Apartments that are considered to be luxurious go beyond the traditional limitations of residential life. In addition to the fundamental characteristics of a house, they provide a heightened level of living, distinguished by outstanding architecture, cutting-edge technology, and abundant facilities. These houses have been painstakingly created to suit the most sophisticated tastes, starting with the high-end finishes and ending with the spectacular views outside.

Investing in luxury apartments immerses yourself in a world where comfort and architectural creativity come together. Not only does the square footage contribute to the attraction, but the fine details also contribute to creating a living area that emanates sophistication and exclusivity. You can get an apartment in any location of your choice. If you are in Houston, or that’s your choice, then doing an internet search on furnished apartments Houston would be a great place to start. Here are some things you need to look out for while looking for a luxury apartment to invest in;

Incomparable Amenities In luxury apartments 

One of the characteristics that sets luxury flats apart from other types of apartments is the extensive provision of amenities. A lifestyle that goes above the typical is provided by these properties, which include amenities such as private gyms and spa facilities, concierge services, and rooftop lounges of various kinds. Residents can enjoy the comfort of having everything they require within their own house’s limits, transforming their typical activities into genuinely remarkable events.

Safety and Confidentiality

One of the most common features of luxury flats is advanced security systems, which protect the occupants’ privacy and safety. These elements, including secure entrance systems and surveillance available around the clock, contribute to a sense of peace and well-being. Your possessions will be protected, and the general quality of life will be improved if you invest in a home with a high focus on security.

Location

The value of a luxury apartment is considerably increased by many factors, including its proximity to cultural monuments, its accessibility to premium areas, and its spectacular vistas. Invest in a prime location, which not only guarantees exclusivity but also provides the groundwork for long-term appreciation of the property.

When making a strategic investment in luxury flats, it is vital to find not only aesthetically beautiful residences but also locations with potential expansion. The location of your luxury apartment plays a significant role in determining the success of the investment, regardless of whether it is situated in a bustling urban center or a calm seaside.

Possibility of a substantial return on investment

The potential for big profits appeals to investors even though luxury apartments typically need a higher initial investment. Because of the exclusivity and the amenities that come with living in a luxury home, demand may increase over time, contributing to greater property values. In addition, the attractiveness of luxury flats frequently translates into a stable rental market, which provides investors with a consistent source of income.

Those who want to diversify their financial portfolios could enter real estate, hotel, or other sectors. High-worth individuals looking to invest in luxury real estate or pursue other high-end options will find it a great venture to buy luxury houses. It’s crucial to seek professional advice and work with experienced professionals throughout the process.

Investors interested in luxury homes, hotels, resorts, and other tourism-related ventures should be aware of some common blunders that people often make. To successfully invest in Nice on the French Riviera, you must avoid the following mistakes:

Not conducting thorough due diligence

Please thoroughly research the property’s legal status, title deeds, and any potential issues to avoid unpleasant surprises after the purchase. Examining the property’s title deeds and ownership history is crucial. With proper due diligence, you may avoid potential title disputes, outstanding liens, or ownership issues that could lead to legal battles and complications.

A detailed property inspection is essential to uncover hidden defects or necessary repairs. Failing to conduct inspections may result in unexpected maintenance costs or, in extreme cases, structural issues that could affect the property’s value. Thorough due diligence involves examining the financial aspects of the property, such as outstanding mortgages, property taxes, and any unpaid bills. Overlooking these financial aspects can lead to unexpected financial burdens after the purchase.

In the case of luxury properties, the quality of construction is paramount. Skipping a detailed examination of the construction quality may lead to durability, energy efficiency, or overall building integrity issues. Hire professionals to conduct a comprehensive due diligence process.

Focusing solely on aesthetics

Focusing solely on aesthetics when buying a luxury house can be a common mistake, as it may lead you to overlook practical considerations. While the visual appeal of a property is undoubtedly essential, several potential pitfalls are associated with prioritizing aesthetics alone. For instance, a beautiful exterior may mask underlying structural or maintenance issues. It’s essential to look beyond the surface and conduct a thorough inspection to identify any potential problems.

Aesthetically pleasing features may not necessarily align with your practical needs or lifestyle. Consider whether the layout and design of the house meet your functional requirements and daily living preferences.

Trends in architectural and design styles can change over time. What may be fashionable now might have a different appeal in the future. Consider the long-term resale value of the property beyond its current aesthetic appeal.

Aesthetic features like large windows or an open floor plan may impact energy efficiency and privacy. Consider how these design elements align with your practical needs and lifestyle.

Being influenced solely by emotions

Luxury properties can evoke strong emotional responses. However, it would help to base your decision on a rational analysis of the property’s merits and potential risks.

Make a list of features and qualities you desire in a luxury house. Prioritize these based on your needs and preferences. Refer to this list during your property search to focus on practical considerations rather than emotional impulses.

Seek input from friends, family, or a real estate professional. They can offer objective perspectives and help you consider factors you might overlook when emotions run high.

Understand that only some properties will be the perfect fit. Be prepared to walk away if a property doesn’t meet your criteria, or negotiations must align with your budget. This mindset helps detach emotions from the decision-making process.

Consider how the property aligns with your long-term goals rather than short-term desires. Evaluate its potential for meeting your needs and whether it supports your overall lifestyle and investment objectives.

Not considering resale value

Considering the resale value helps you assess how the property may fare in different market scenarios. Property preferences and trends can evolve. What is considered desirable today may hold a different appeal in the future. Understanding potential shifts in buyer preferences can inform your investment decisions.

Taking the time to avoid these mistakes and approaching purchasing a luxury house with careful consideration and professional guidance can lead to a more prosperous and satisfying investment.

SIPs allow investors to invest fixed amounts at regular intervals, like monthly or quarterly. This makes investing more affordable, and regular investments also allow rupee cost averaging and compounding benefits. When starting a new SIP, one of the most important factors to determine is the SIP amount you can invest per interval. This depends on your financial situation and investment goals.

Use an online SIP calculator to find your ideal SIP amount

Luckily, there are easy-to-use online SIP calculators available to help determine the ideal SIP amount for your investment goals. Here are some key benefits of using an online SIP calculator.

Factor in time horizon

An SIP calculator will allow you to enter your mutual fund investment time horizon, like 5 years, 10 years, 15 years, or until retirement. The longer the time frame, the smaller the required SIP amount.

Consider expected returns

The calculator incorporates expected long-term stock market returns in India, usually between 10-12% per annum. This allows an estimate of how your SIP will grow.

Account for inflation

Inflation reduces real returns, so a good calculator will factor this in and accordingly suggest higher SIP amounts for long-term goals.

Allow lump sum investments

Many investors may want to supplement SIP investments with lump sum amounts initially or at intervals. The calculator allows additional lump sum inputs.

Flexible goal amount

You should be able to enter any investment goal amount, like saving for a house, child’s education, retirement corpus, etc. The calculator provides the required SIP amount.

How the SIP calculator works

The SIP calculator takes your inputs on the investment horizon, expected returns, inflation rate, lump sums (if any), and target investment amount. It uses this data to calculate the monthly or quarterly SIP amount you need to invest to achieve your goal.

The logic is based on the mathematical principles of compounding and the time value of money. The longer the investment period, the more your money can grow through compounding returns. So for long-term goals, smaller SIP amounts are needed. For short term goals, larger SIP amounts are required as there is less time for compounding.

Many SIP calculators provide tables and charts to show you how your SIP will grow each year till maturity. You can tweak the inputs and see how it impacts your required SIP amount. This allows you to plan your investments more effectively.

Use the calculator to plan your finances

The SIP calculator is a useful tool for all kinds of investors to plan their medium to long term financial goals. Here are some examples:

Retirement planning – determine the monthly SIP needed to create your desired retirement corpus

Children’s education – plan SIPs to accumulate funds for school/college fees 

Buying property – Know the SIP amount required for your down payment amount

Wealth creation – Use the calculator to find out SIP amounts to reach your wealth goals 

Recurring expenses – Meet recurring financial needs through SIPs in debt funds

The online SIP calculator gives you control over your investment planning. By playing around with the variables, you can determine a viable monthly SIP amount that fits your budget and helps you achieve your financial goals systematically over time.

For beginners, when it comes to investing in mutual funds, commencing your investment journey may seem scary at first. You might discover various funds with a specific investment strategy and asset allocation. Trading in mutual fund shares differs from trading in stocks or an IPO or ETF shares. Management fees greatly influence returns on a mutual fund investment. Therefore, it is important to know what they are.

An investment business referred to as a mutual fund blends the money of many investors in a single pool. Along with stocks, bonds, real estate, and commodities, the fund’s team of professional managers invests the funds in various other assets, and a mutual fund investor buys shares of the fund after accessing the trading view chart.

The BSE India and the NSE India regulate the financial markets and every share in an asset class represents a stake partially in the fund’s assets. Due to their high transactional costs, mutual funds are suitable for long-term investors only. Investors might find mutual funds a tool worth investing in as they are well-diversified. A well-diversified portfolio decreases the investment risk.

Another benefit of a mutual fund investment is that it provides liquidity. Thus, mutual fund shares are systematic to trade and come in a range of options, including stock, bond, balanced, and index.

Factors to keep in mind before investing in mutual funds for beginners:

• Create a goal for your investment:

Financial aims, budget, and time duration have a major role. To know how much money you can invest, you should first determine how much risk you can take. Investing reaps the best results when done with a specified goal.

• Ensure to choose a type of mutual fund:

Selecting the right category needs more than just reading about several fund types. Due to its low risk and fixed returns, beginners are frequently advised to invest in a debt or balanced fund.

• Choose a mutual fund after shortlisting:

If you are looking for an investment option, you will first need to assess and evaluate many mutual fund options available in various categories in the market. Investors should also avoid overlooking aspects of the fund manager’s qualifications, expense ratio, portfolio elements, and assets under management or AUM while making important investment decisions.

• Invest in a broad range of assets:

You should diversify your investment portfolio by investing in multiple mutual funds. To diversify your investment portfolio in stock market, you should invest in various funds and stocks respectively. If one mutual fund underperforms, the other ones compensate for the loss, thus keeping the value of your portfolio stable.

• Opt for Net Banking:

Internet banking is needed for all mutual fund-related transactions. Investing in mutual funds can be made possible using checks and debit cards, but net banking is a relatively simpler and faster way.

Conclusion:

Investors are required to follow their due diligence before buying a mutual fund. Few factors of this are more convenient, but it is important to look at the bigger picture by considering all the crucial aspects regarding mutual funds; the reasons to invest in mutual funds are many, and just like the share market, a little research can go a long way in making a huge difference, thereby inculcating a sense of security.

Gold has always been an integral element of Indian culture and traditions. From weddings and festivals to religious and special occasions, gold symbolises prosperity and good fortune.

For generations, Indians have invested in physical gold as a way to secure their wealth and protect against inflation. However, with the digitisation of the investment industry, buying gold has also become digital. This means that you can now invest in Gold Exchange-Traded Funds (ETFs) without worrying about the safety and storage issues that come with owning physical gold.

What is a gold ETF?

Gold ETF is an exchange-traded fund that invests mainly in gold. Just like stocks, you can buy and sell these funds on the stock exchange. They are similar to open-ended mutual funds, but they are focused on gold and its fluctuating prices.

When you invest in a gold ETF, you are buying units that represent a certain amount of gold. One unit of a gold ETF is equal to one gram of gold. The advantages of investing in gold ETFs are the flexibility, liquidity, and diversification they offer. Since they are listed and traded on stock exchanges, these investments are regulated by strict guidelines and offer more protection than physical gold.

Steps to invest in gold ETFs

To invest in gold ETFs online, you need a demat account and a trading account. Provide the relevant documents and information as per the requirements. After that, you can buy/sell units online or monitor their performance. Here is how to do it.

• Compare gold ETFs: Research and select the gold ETF that matches your goals, risk profile, and return expectations. Check its expense ratio, liquidity, past performance, fund manager, and evaluate other parameters.

• Place your order through an online portal: Log in to your trading account on the broker’s website or app. Enter the gold ETF investment details, such as the number of units or the amount you want to invest. Review the order before placing it.

• Confirmation of purchase: Once your purchase order is matched with a corresponding sell order on the stock exchange, you will receive a confirmation of the transaction. This confirmation is usually sent to you via SMS or email.

• Transaction charges: Brokerages charge a nominal amount as transaction fees for buying and selling gold ETFs. Evaluate the charges associated with your trades beforehand and factor them into your investment decision.

Why should you buy a gold ETF?

• Liquidity: Gold ETFs make it easy for investors to buy and sell gold online with just a few clicks. This is more convenient than selling or buying physical gold bars or coins.

• Cost effective: Gold ETFs generally have lower expenses than most other types of mutual funds.

• Diversification: A gold ETF can provide diversification in the sense that gold tends to have a low correlation with most asset classes. For example, when the stock markets crash, gold usually holds its value which can help you balance out the losses. Investments in gold ETFs can also protect you against inflation and currency fluctuations.

• Transparency: Gold ETFs provide investors with transparency in terms of pricing and holdings. The price of a gold ETF is linked to the market price of physical gold, minimising the chances of manipulation.

To conclude

With low expenses, ease of trading and storage, transparency, safety, and a high level of liquidity, gold ETFs help you capitalise on the benefits of gold investment without the hassle of physical ownership. There are multiple online platforms where you can easily buy gold ETF with real-time updates. However, financial guidance is important to determine the right allocation as per market trends and to map out an investment strategy.

There are various types of mutual funds available with various risk levels. These include equity funds like large cap, multi-cap, balanced fund also known as hybrid funds, debt funds like liquid funds etc. Mutual fund types that may fall into the high-risk mutual fund category include small cap, mid cap, etc.

While these mutual funds carry risks, they come with high return potential. As a retail investor, it is crucial to know which top high-risk mutual funds may be your best bet per your investment profile to generate higher returns.

To choose an appropriate high-risk, high-return mutual fund, check its previous performance to ensure it is still performing according to your risk appetite and financial goal requirement.

Features of high-risk mutual funds

High-risk mutual funds are volatile but can deliver high returns. Thus, they are best suited for you if you are willing to take an increased risk. Opting for the best high-risk mutual funds may allow you to yield market and inflating beating returns.

If you have opted for the dividend option instead of growth, you may even get a higher dividend on your mutual fund units. You can use such high-risk mutual funds to gain the benefit of portfolio diversification. Several high-risk funds provide sectoral exposure permitting you to put your funds in sectors expecting higher growth over time. Via such funds, you can even invest in upcoming sectors or new markets like e-commerce or renewable energy.

Thus, high-risk funds allow you to invest in organizations and companies projecting high growth. However, it also means that as such corporations are less steady than big corporations and are vulnerable to market fluctuation, your final returns could be negatively impacted if the corporation performs poorly.

Therefore, you can invest in such funds if you hold a high-risk appetite. If you are risk-averse and remain concerned about protecting your initial investment, you must not invest in such high-risk mutual funds.

Taxation on high-risk funds

As high-risk funds invest in equities, capital gains are taxed according to capital gain tax rates. If the holdings in high-risk equity funds are sold within one year, a 15% STCG (short-term capital gain) tax is levied. If the investment tenure is over a year, the applied LTCG (long-term capital gain) tax rate is 10% on gains of more than Rs 1 lakh.

Who should invest in high-risk mutual funds?

High-risk mutual funds are best for you if you can face risk and have the goal of benefiting from higher growth potential. If you are a long-term investor with a slightly higher risk potential and previous experience in handling market volatility, you can also opt for high-risk funds.

High-risk mutual funds are a perfect choice if you can absorb the short-term volatility and patiently remain invested over a longer time horizon of five years and above.

Just like any investment option, high-risk funds come with a set of benefits and drawbacks. Such funds are prudent if you have market experience and want to stay invested in the market for long. Also, to select the best high-risk mutual fund per your preference, you must conduct in-depth market research.

Once you invest, you must periodically check the fund’s performance with its peer funds and benchmark indices. If your investment underperforms for three years, consider redeeming your investment to invest in better-performing, high-risk, high-return mutual funds.

When it comes to long-term investments, ULIPs are one of the best options available in the market. Unlike other investment options, ULIPs offer a wide range of benefits that can help you grow your money over a period of time. This blog post will discuss how staying invested in ULIP for 10 years can maximize your investment.

We will also explore the different features of ULIPs that make them so popular among investors. So, if you are looking for a long-term investment option, then read on!

An Overview of ULIP Investments

ULIP or Unit Linked Insurance Plan are a type of insurance product that offers the policyholder both life insurance and investment opportunities. The investment portion is usually invested in mutual funds, giving the policyholder the potential to grow their money while also being protected in case of death or other unforeseen circumstances.

The dual benefits of market-linked returns and life cover make ULIPs one of the most sought-after investment plans.

Wealth Expected to be Created Within 10 Years through ULIPs

If you are looking for a long-term investment option, then Unit Linked Insurance Plans (ULIPs) are one of the best choices available, with returns ranging from 10% to 12%. What’s more, if you stay invested in ULIP for 10 years, then you can maximize your investment and create wealth within that time frame.

The returns that ULIP provides are much better. Moreover, your long-term returns can be negatively impacted due to inflationary trends. ULIP can help you nullify this factor by allowing you to choose a policy with a lock-in period of ten years or more.

Reasons ULIP are Perfect for 10 years of Investment

Here are the major reasons why you must choose to invest in ULIP for 10 years:

1.     Tax Savings

A ULIP plan offers you dual benefits of life insurance and investment. Thus, allowing you to save taxes under different sections of the Income Tax Act.

Under Section 80C, you can claim a deduction of up to ₹150,000 for the premiums paid towards your ULIP policy.

2.     Flexibility

Unit Linked Insurance Plans offer great flexibility in terms of the amount you wish to invest, as well as the tenure of your investment. You can start investing with as little as ₹500 per month and stay invested for just five years.

3.     Fund Switching Option

You can switch your ULIP funds as per your risk appetite. As your investment period lengthens, you can afford to take on more risk because you have time to recover from market volatility. This is why it’s important to review your ULIP fund choices at least every few years and ensure they align with your current goals and risk tolerance.

The Bottom Line

Investing in ULIPs for the long term is crucial to maximize your investment and get the most out of your policy. By staying invested for at least ten years, you give your investment the time it needs to grow and compound, resulting in a much larger payout when needed.