While investing in equities can help investors grow their wealth, many people may not afford the high risks involved in such investments. Such investors don’t want to put their hard-earned money at risk. Instead, they want a stable but assured return from their investments.
Thus, a guaranteed return plan can be the best option for such type of risk-averse investors. Your investments in these plans are shielded from market volatilities while providing a fixed rate of return. In India, there are many such financial instruments where you can invest your money without worrying about loss of capital.
Top Investment Plans in India That Provide Guaranteed Returns
- Guaranteed Savings Plan
These are the endowment plans that offer both life insurance coverage and guaranteed maturity benefits. Such plans require you to pay a premium amount for a fixed policy term that can be anywhere between ten to twenty years as per your choice.
The premium amount is calculated based on factors such as age, health condition, insurance coverage, policy tenure, etc. You can also decide the premium payment frequency, which can be yearly, half-yearly, quarterly, or monthly.
On maturity, you will get a lump sum amount as the sum assured along with accrued bonuses as per the policy terms. In the event of death, the nominee will receive the death benefits along with bonuses accrued as on the date of death of the life insured.
- Pension Plans
It can be tough to manage your daily expenses post-retirement without a regular income stream. Besides, it would be unwise to delve into your retirement corpus to meet those expenses frequently. Therefore, it’s crucial to have a pension plan that can help you get a regular pension.
Pension plans are mainly of two types.
- Immediate Annuity Plans
Pension starts right after you purchase the plan by paying a one-time lump sum premium. Such plans can provide different annuity options, such as annuity for life with or without the return of purchase price, joint annuity for policyholder and spouse, and so on.
- Deferred Annuity Plans
You buy the pension plan by paying a lump sum amount and choose a deferment period. The deferment period can be anywhere between one to ten years. You start receiving a fixed pension regularly after the completion of the deferment period.
You can also choose the annuity payout frequency, which can be monthly, quarterly, or annually.
Click here to know more about the different types of Annuity Plans.
- Fixed Deposits
These are the most recognisable financial instruments provided by banks. You keep the money into a fixed deposit for a fixed period that can be anywhere between one to five years.
The rate of return is fixed at the time of opening the fixed deposit account. You can choose the interest to be paid out at regular intervals or maturity.
Apart from providing a risk-free investment option, a guaranteed return plan can also hedge your investment portfolio when other high-risk products perform poorly. So, even if you’re an investor with a high-risk appetite, you should consider diversifying your portfolio with a suitable assured return plan.
Besides, guaranteed return plans can prove to be a saviour of your investment portfolio in times of uncertainty.
Click here to know more about Guaranteed Savings Plan in India: https://www.kotaklife.com/online-plans/savings-plan
