Investment is the flagbearer of a strong financial future. Even though investment is necessary for wealth building and managing your future expenses, it should be simple.
The last thing you would desire is to be stressed out. You must never perceive it as a hassle but as a healthy practice for your financial future. If an investment seems to be nothing less than a hassle for you, it might be because you are investing in SIP modes of investments.
Systematic Investment Plans that invite regular deposits have their own set of benefits. They might be the go-to choice for salaried investors who prefer investing at regular intervals.
At the same time, they might also be an inconvenience for some people as they have to keep investing again and again.
So, if the struggle seems familiar to you, you must definitely consider investing in a simpler form of investment – a one time investment plan.
We will be telling you about a one-time investment plan in this guide.
What are One-Time Investment Plans?
As the name suggests, a one-time investment plan requires the investor to invest only one time in a fund to generate returns. This fund can be used to invest in market-linked instruments or can be offered a fixed interest rate, depending on the plan.
Who Should Invest in a One-time Investment Plan?
Have an amount saved up for the month? If yes, you can invest the sum in a one-time investment plan. One-time investment plans are ideal for individuals who don’t wish to invest at regular intervals. In addition, it is suitable for those who cannot deposit a fixed sum into the plans; in other words, their investment sum is mostly undecided.
Benefits of Investing in One-time Investment Plans?
One-time investment plans offer a plethora of benefits. Here are a few of them:
- Capital Appreciation:
When you are investing in market-linked instruments, your returns depend on the market performance. The prices of stock can increase or decrease in the short term; there’s no speculating how much. However, when you are investing in regular-investment plans for a shorter duration, your investment doesn’t get enough time to adjust to the market situations. The scenario is different if you go for long-term one-time investment plans; even if you face losses, they get cancelled out by the gains, helping you grow wealth.
- Low-charges:
Banks and Non-Banking Financial Institutions levy service or administrative fees when you are investing. As regular investment plans require multiple investments, this charge multiplies, affecting the profit you genuinely gain. With a lump-sum investment plan, you need to pay charges just once.
Ergo, they help you save costs and preserve your returns.
- Higher Returns in the Longer Duration:
If you prioritize earning higher returns in the long run, one-time investment plans are a better option. The one major benefit of long-term investment plans is that they multiply your money through the power of compounding.
However, when you opt for a longer investment tenure in regular-deposit investment plans, the dividends received and the interest earned on them remain invested for a shorter period. But with one-time investment plans, the sum stays invested throughout the entire tenure, generating better returns in the future.
Some Top-Notch One-time Investment Plans to Consider
Now that you know the several benefits of one-time investment plans, here are some of the top-notch one-time investment plans you can consider investing in:
- Fixed Deposits:
Investors who prefer investment safety over returns should go for fixed deposits. Fixed deposits invite a one-time investment. This investment earns a fixed interest rate in the long run, providing guaranteed returns to the investor. The interest earned on interest, also known as compound interest, further helps an investor grow their wealth faster.
- Stocks:
Investment in equity funds comes with its own pains and gains. While equity funds can offer you the highest returns, they come with market risks that can never be accurately anticipated.
- Mutual Funds:
Mutual funds work by pooling money from multiple investors and then channelling the funds into multiple investment funds.
These investment funds include:
- Equity Funds
- Debt Funds
- Liquid Funds
- Hybrid Funds
The best thing about investing in mutual funds is that you can invest even when you don’t have the expertise. You can choose the types of funds you want to invest in on the basis of your investment objectives, goals and risk appetite, and the portfolio manager would invest in multiple asset classes according to their expertise, keeping your preferences in mind.
The Bottom Line
One-time investment plans are a bright investment option for a varied set of individuals. If you think these plans align with your investment preferences and goals, today might be a good day to start investing in them. However, if you feel regular-investment plans such as ULIP or SIP are ideal for you, you can invest in them. To make investment decisions easy, you can use a SIP or ULIP calculator to calculate your maturity returns in a matter of moments.