Investment Plans 142 views August 12, 2021

What comforts salaried the most is the regular flow of income they have, unlike their self-employed counterparts who have to deal with income fluctuations. But the income of the salaried remains the same until their annual increment. Further, a handsome appraisal not only depends on your spectacular performance but also on factors beyond your control! In case the company you work at goes through a tough time, you might get a minuscule or no hike in your salary.

Investment

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Even during a job switch, the hike may not be impressive in case of a gloomy employment scenario. Keeping such uncertainties in mind, salaried people should keep money in certain investment plans. These plans include stocks, mutual funds, life insurance-cum investment plans, etc. The money invested in these grows over the years and helps you achieve your financial goals. Let’s talk about the investment plans salaried should consider putting their money in.

Here’s a List of Investment Plans for Salaried

Salaried can choose from a wide range of investment plans based on their financial goals, risk appetite and the time for which they would like to stay invested. Those having ambitious financial goals and high-risk appetites should stay invested in equities for long. Long-term investments in equities usually generate good returns for investors. One could invest in equities directly or through mutual funds and Unit-linked Insurance Plans (ULIPs). Whereas those with short-term goals and low-risk appetite should consider investing predominantly in debt instruments, fixed deposits, etc. Let’s read more about these investment plans for salaried below.

Let’s Talk About Equity Investments First

Equity investments are made in stocks of companies listed on the exchanges. Both rise and fall of stocks can be erratic and thus require an individual to have a high-risk appetite and patience. If you have these virtues, equity investments will most likely reap rewards for you.

While direct investments in equities are strictly for those who have in-depth knowledge of the stock market, others can rely on the expertise of fund managers taking control of mutual fund investments. These managers use their market expertise and analysis to keep mobilizing your money across different stocks to maximize your earnings.

You can choose from large-cap, mid-cap, small-cap and multi-cap funds. While large-cap funds invest in stocks of top 100 companies, mid-cap funds put the money in stocks of the top 101 to 250 companies according to market capitalization. Small-cap funds invest in companies ranked after 250 in terms of market capitalization. Whereas multi-cap funds invest across market capitalizations and are thus considered the diversified lot.

You can invest in mutual funds via Systematic Investment Plan (SIP) at any of the monthly, quarterly, half-yearly or annual intervals. Or you can put a lump sum amount in mutual funds.

What to Do If You Want Life Cover Along with Investment Proceeds?

As long as you are employed, you can take care of your family members. But what if you die and leave them with plenty to do on the financial front? This is where you can rely on ULIPs, endowment and money back plans. These plans offer your nominees a handsome payout (sum assured) in case you die during the policy term. Besides, the attractive returns make for investment in these. In exchange for such benefits, you need to pay the premium to the insurer. But which to choose from the three? Read further where we’ll discuss these plans and help you identify the right fit for you.

Who Should Invest in ULIPs?

As pointed out above, ULIPs would suit investors with a high-risk appetite. These plans come with the following attractive features.

  1. Choice of different funds
  2. Unlimited switching
  3. Partial withdrawal facility after five years
  4. Life cover in case of death of the life assured during the policy term
  5. Bonus payout in case the chosen ULIP is a participating plan
  6. Fund value as available on the date of maturity

So, Which are the Best ULIPs Available?

The table below shows the list of ULIPs where you could invest your money in.

Plan NameDeath BenefitFund OptionsPremium Amount (In INR)Policy Term (In Years)
HDFC Life Click 2 Invest Plan7 times the annualized premium (When the Entry Age is more than 55 years)

10 times the annualized premium (When the Entry Age is less than or up to 55 years)

Single-Premium Policies - 1.25% of the single premium
Equity Plus Fund


Diversified Equity Fund


Blue Chip Fund


Opportunities Fund


Balanced Fund


Income Fund


Bond Fund


Conservative Fund


Discovery Fund


Equity Advantage Fund


Secure Managed Fund
Starts from 1,000 Per Month5-20
Aviva i Growth6-50 LakhBond Fund - II


Balanced Fund - II


Enhancer Fund - II
Starts from 48,000 per year10/15/20
Aegon Life iInvest Insurance PlanMinimum Sum Assured

When the entry age is less than 45 years - Higher of 10 times the annualized premium and 0.5 x policy term x annualized premium

When the entry age is 45 years and above - Higher of 10 times the annualized premium and 0.25 x policy term x annualized premium
Bluechip Equity Fund


Stable Fund


Accelerator Fund


Opportunity Fund


Secure Fund


Debt Fund
Starts from 2,000 per month10/15/20/25
Bajaj Allianz Life Goal Assure PlanHigher of prevailing sum assured or Regular Premium Fund Value

The death benefit is subject to a guaranteed payout of 105% of total premiums paid till the date of death
Equity Growth Fund II


Accelerator Mid Cap Fund II


Pure Stock Fund II


Asset Allocation Fund II


Bluechip Equity Fund


Bond Fund


Liquid Fund
Starts from 3,000 per month5/10/15/20

Endowment & Money Back Plans – The Best Bet for People with a Low-Risk Appetite

If you have a low-risk appetite and seek stable returns, look to invest in endowment and money back plans. Endowment plans generate guaranteed returns by investing in products offering the same. The salient features of endowment plans are as follows –

  1. Guaranteed Returns
  2. Flexible Premium Payment Term
  3. The facility of policy surrender after it acquires a surrender value
  4. Bonus payouts in case of a participating endowment plan
  5. Death Benefit
  6. Maturity Benefit
  7. Loan Facility Available Against Surrender Value

Best Endowment Plans for Salaried

Here’s a list of best endowment plans that salaried can invest in.

Plan NameDeath BenefitMaturity PayoutPremium Amount (In INR)Policy Term (In Years)
HDFC Life Sanchay PlusThe highest of

10 times the annualized premium

105% of the total premiums paid

Guaranteed sum assured on maturity

Absolute amount payable at the time of death
A lump sum amount for lifelong or for a specified number of years after the policy periodStarts from 2,500 per month6-20
Max Life Monthly Income Advantage PlanMinimum Sum Assured - 54,000-4,05,000Accrued compound reversionary bonus, if any, terminal bonusStarts from 25,000 per year16-45
Canara HSBC OBC Guaranteed Savings PlanThe highest of

11 times the annualized premium

105% of the total premiums paid

Guaranteed sum assured on maturity

Absolute amount payable at the time of death
Guaranteed sum assured on maturity, guaranteed yearly additions, guaranteed loyalty additionsStarts from 20,000 per year10-20
Aviva Guaranteed Income Plan20 times the annual premium11 annual installments of 1.2 times the annualized premium at the end of each year after maturityStarts from 50,000-75,000 per year15

Money Back Plans That Salaried Can Consider Investing in

Money back plans, a type of life insurance plan, are defined by the name itself. It returns you the money you invest through premium at specified periods. It is called the survival benefit and would most likely interest salaried. Let’s take a look at the salient features of these plans.

  1. Regular payouts upon survival
  2. Flexible premium payment and policy terms
  3. Bonus payouts
  4. Death benefit payout
  5. Maturity benefit payout

So, Which are Those Most Sought-after Money Back Plans?

Here’s a list of such money back plans and their respective details regarding sum assured, premium and policy term. Take a look.

Plan NameSum AssuredSurvival BenefitMaturity BenefitPremium Amount (In INR)Policy Term (In Years)
Bajaj Allianz Cash Assure PlanMinimum - 1,00,00015%/20%/25%/30% of the sum assured depending on the policy term chosen60% of the sum assured plus vested bonus (if any) +terminal bonus (if any)Starts from 6,500 per year16/20/24/28
Aegon Life Regular Money Back Insurance PlanSingle Pay Plans -

Higher of 1.25 times the single premium and sum assured

Limited Pay Plans -

Higher of 10 times the annualized premium and absolute sum assured amount
15% of the sum assured at the end of 10th to 19th policy yearAccrued Bonus + Terminal Bonus, if anyNot Specified10-20
HDFC Life Super Income PlanMinimum - 18,457-76,1983.84-12.50% of the sum assured on maturity during the payout periodLast survival benefit amount Accrued Reversionary Bonuses Interim Bonus (If Any) Terminal Bonus (If Any)Starts from 2,000 per month15-27
Aviva Dhan SamruddhiMinimum - 2,65,000-4,00,000125% of one year’s premium at the end of every 5th policy year, except at maturity(Sum assured + guaranteed additions till maturity) less the payout of survival benefitsStarts from 3,109 per month10-20

Will It be Good to Put Money in Fixed Deposits?

You can open a fixed deposit at banks with an amount as low as INR 1,000 and for a maximum of 10 years. However, keeping money in a fixed deposit feels good only for the short term. The interest rates remain reasonable when booking a fixed deposit for around three years. Subsequently, the interest rate remains quite low. At the same time, fixed deposits are advised mostly to people with a low-risk appetite. You can check below the fixed deposit interest rates of top banks for three years.

BanksFixed Deposit Interest Rates (In Per Annum)
State Bank of India (SBI)5.30%
HDFC Bank5.15%
ICICI Bank5.15%
Axis Bank5.40%
YES Bank6.25%
IndusInd Bank6.00%
Bank of Baroda (BoB)5.10%
Punjab National Bank (PNB)5.10%
Canara Bank5.10%

Note – The FD rates shown above are for deposits below INR 2 crore.

The Bottom Line 

As investments carry a degree of risk – high or low – it won’t be bad to invest across instruments to offset the fall of one with the rise of others. As they say, don’t put all your eggs in one basket. However, the maximum chunk of investments should go to instruments that suit you the most. Keeping these fine points in mind will help you prevail through your investment journey.

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