Plans allow systematic enhancement of wealth with insurance
We all need to save from our regular income in order to meet future expenses and contingencies. Savings when directed into an investment plan grow with time. There are various investment plans that are available and one needs to choose wisely so as to get the most out of your savings.
The investment plan you choose should ensure the security of your principal and should help you earn an attractive return. Many investment plans come with a tax benefit, which helps you save tax on the amount you invest in the plan. The extent of tax savings you can generate would depend on which income tax bracket does your income qualify for.
To get the best out of your investment plan, you need to start investing as early as possible so that your savings get adequate time to grow and can be channeled in the most promising investment avenues.
When you start early, you have a longer investment horizon. Hence, you can be more aggressive with the investments you make. You can opt to invest in plan that has a mandate to invest in equities. It has been historically observed that over longer investment horizons equities provide much better return than debt. People perceive equities as high Risk investment options but a large part of the risk (owing to economic / cyclic downturns) associated with equities are mitigated when the investment horizon is long enough.