Financial Planning Is Important In Corona Era, Best Investment Option
Such an investment strategy should be made so that there is no need to borrow from friends-relatives or loan from the bank for any small or big work.
New Delhi. Due to the Coronavirus, this time has become more difficult for everyone than before. The economic condition of the people has been affected. However, many people have suffered less losses due to better financial planning. At the same time, there are many people who had to suffer due to lack of financial planning. People have got a lesson from the Corona era that good financial planning is very important for life.
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First of all, emergency fund is most important for the contingency needs of life. Next comes the investment number. The investment strategy should be made in such a way that there is no need to borrow from friends-relatives or loan from the bank for any small or big work. These can be the best five options for this.
Public Provident Fund (PPF)
Public Provident Fund is very good for long term goals like retirement. Since the investment tenure is 15 years, the effect of compounding of tax free interest is seen in this. At present, it earns 7.1 percent interest. Its amount is given every year by adding it to the original capital (compounding). It is considered a completely safe investment. The reason for this is that the government guarantees interest and principal. The maximum annual investment that can be made in this is Rs 1.5 lakh.
2- MF SIP
Equity is also considered ideal for long term investment. Mutual funds are the easiest way for common investors to enter this market. In this SIP (Systematic Investment Plan) investors get the facility to invest a fixed amount in equity every month. You should start SIP in 3-5 such schemes which have consistently performed well. It is better to choose Large Cap Fund. Some investments may be better in a mid-cap scheme.
3- National Pension Scheme
The National Pension Scheme (NPS) is specially designed for retirement. It is a long term investment product. It is supervised by pension fund regulator PFRDA. The minimum contribution for activating NPS Tier-1 account has been reduced from Rs 6,000 to Rs 1,000 per annum. After retirement, you can take 60 percent of the entire capital tax free in one go. At the same time, 40 percent of the fund can take lifelong pension.
4- Health insurance cover
Treatment of diseases has become very expensive. In the era of Corona, it has been seen that people have invested their life’s accumulated capital in the hospital expenses during the treatment. This expenditure sits in lakhs not in thousands. In such a situation, good health insurance coverage is very important. If you have medical insurance coverage (Rs 8-15 lakh), you can get relief from the cost of treatment.
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5 – Adequate life insurance coverage –
Life insurance cover is a must. So if you have not got life insurance yet, then first of all take it. Now the question is, how much life insurance should be taken for the financial security of the family. People should choose an insurance by comparing it with a better plan.
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