What Makes a One-Time Investment Plan Ideal for You?
The one-time investment plan, also called the lump sum investment option, is a good choice for experienced investors who know much about the market. These investors are brave enough to make a big investment all at once instead of making smaller investments every month through a SIP. For these investors, a direct plan is preferable to a standard one. We will learn more about the one-time investment plan in this go-to investment guide.
One-Time Investment Plan Benefits
Let’s examine the advantages of a one time investment plan.
- Longer Time for Capital Growth: Because one time investment plans remain in the market for a lot longer, there are more prospects for appreciation and wealth creation.
- Nominal Fees: Because a one time investment plan option invests a lump sum all at once, most transaction fees are also one-time. Accordingly, the investor will avoid paying transaction fees on each monthly installment.
- Hassle-free: With a one time investment plan, you avoid the hassle of having to keep track of your monthly installment payments. It is true that you have the option to have your SIP monthly installments auto-debited, but here, you would need to make sure that the auto-debit didn’t fail because of a technical glitch or because there wasn’t enough money in your account.
Finest One Time Investment Plans in India
Almost every financial tool’s suitability depends on your expectations and ambitions. Apart from that, determining which one time investment plan is best for you and which is not depends on several factors, including time. Your level of comfort with any investment would be one of the additional criteria. Here are some of the best investment options for you to park your bonus cash, taking all of these considerations into account:
- Mutual Funds: Because of the diversity and expert management involved, they are less risky than direct market investments.
- Debt Funds: There are many other kinds of debt funds, but for your consideration, we are just accounting for those that invest in corporate bonds orgovernment securities. These funds have a far lower risk profile than equity funds based on the securities they hold.
- Liquid Funds: Even though they don’t make the most money over a long period, liquid funds are one of the most useful ways to invest. But while you choose the finest investment strategy, these funds are the best for keeping your money from being squandered.
- ULIPs to Liquid mutual funds: Investments in ULIPs are particularly tax-efficient. In other words, they provide you with options for equity and debt funds, an 80C deduction, and a tax-free maturity value. Use the ULIP calculator to know the total earned interest based on the investment period.
- Liquid Mutual Funds: They can be used to build investment programs comparable to deferred annuity plans, NPSs, and PPFs.
Also, keep in mind that each one time investment plan choice has a different level of risk and return, a good time to invest, and a reason. Therefore, be sure to review each plan to see which one makes the most sense to you.
Factors to Take into Account Before Making a One Time Investment Plan
01. Be Knowledgeable about the Market Condition: Consider the current state of the investment market to decide if investing through a one time investment option is a good idea. This is true for all investments, but it is especially true for one time investment plans that require a lump sum payment. For the past three to four quarters, monitor the price-to-earnings (P/E) ratio of a broad market index like NIFTY to assess the state of the market.
02. Before Investing in One time Investment Plans, Evaluate the Expected Returns: To determine whether a fund is meeting your expectations, keep an eye on its past performance and the projected returns in the future. Make sure the liquidity it offers to provide fulfills your requirements as well.
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