Make 2019 the year of your financial success: 5 tips on where to invest

In 2019, as the fiscal begins and as we all gear up to plan our financial activities, it is very important that we know where to invest and understand the terms and conditions of our investment decisions so that we can avoid making any kinds of mistakes. In 2019, following is a list of investment decisions that we must make so that we can achieve our peak-potential in the current times:

1. Invest in a ULIP:

   A ULIP is a Unit-Linked Insurance Plan that offers market-linked benefits and acts as a dual plan for investment and insurance coverage. A ULIP offers tax benefits under Sections 80C and 10D of the Income Tax Act and is also exempt from LTCG (Long Term Capital Gains) taxation regime. A ULIP comes with various fund options that may be debt, equity or a mix of both. You can choose from among these options depending on your risk appetite and the performance of a fund. Moreover, there is also the option of switching between funds as and when you wish to do so. This year, you must invest in ULIPs for the combined benefits of insurance and investment.

2. Go for both debt and equity mutual funds:

   Having mutual funds as part of your investment portfolio is very beneficial. It allows you to have a diverse portfolio. However, merely investing all the surplus funds in fixed interest or debt instruments is not a viable option. Depending on your risk-appetite, you must keep a certain portion of the surplus funds for investing in equity funds as this allows you to earn higher returns over a period of time. Besides, the mutual funds are managed by experienced and qualified managers who ensure that there is proper fund allocation for optimum growth.

3. Take out a health insurance plan:

   This is very important if you are not already covered. A health insurance plan offers extensive benefits that cover the medical costs in case of any health-related contingency. It also offers added benefits for pre-hospitalization, accommodation, nursing, surgical procedures, post-hospitalization and recuperation. This enables you to keep your savings secure during any emergency.

4. Invest in NPS:

   NPS or National Pension Scheme is the government-backed annuity plan that comes with a primary account (tier I) and a secondary account (tier II). The scheme is open to all and ensures that you invest sufficiently towards your retirement funds. Tier I account mandates you to invest 60% of the accumulated corpus towards that while tier II account serves as a normal savings account.

5. Invest in gold:

   Traditionally in India, gold investments have been considered to be one of the best hedges against inflation owing to the fact that investing in gold ensures a risk-free asset allocation. Moreover, there are various attractive schemes on offer for gold-based investments and therefore, this year you must invest in gold-related instruments for your financial growth.

HDFC Life offers HDFC Life Click 2 Wealth- a unit-linked plan that caters to your specific investment needs and requirements by offering market-linked benefits and allows you to secure your investment corpus.