By: Tarun Prakash Srivastava, Sr. Executive Editor-ICN Group
In Mutual Funds, the possibility of safe gains is always higher. Such financial institutions periodically bring their mutual funds into the market, and you can invest in that fund for a safer profit.
Mutual Funds
This option is also linked to the stock market but it is more secure, but this security restricts both your profitability and the probability of loss. I see it as a ‘BASKET CHAT.’
Right now, we have received some information above about the stock market, and we have understood that the shares of the trading companies are present for sale in the stock market and we plan to sell and purchase them by the profit or loss earned by these companies in the past.
We calculate the possibility of future profits and loss and buy and sell these shares. While purchasing shares from the stock exchange, we have to rely on our own experience, and often due to the rapid national and international developments, our estimates are dashed, and we have to suffer losses.
Mutual Funds are a good option. Such funds are placed by highly placed financial institutions, and the shares of many companies are purchased simultaneously from this fund so that if a company’s share falls in the market, the profits gained by the share of other companies may reduce its impact as the whole.
In Mutual Funds, the possibility of safe gains is always higher. Such financial institutions periodically bring their mutual funds into the market, and you can invest in that fund for a safer profit.
If you do not have to put a lot of money together in this investment, you still have a mode of investment called SIP. SIP means the option of Systematic Investment Plans. In this type of investment, you can invest a small amount monthly, like monthly installments of Rs. One Thousand or Rs. Two thousand only and so on.
Mutual funds have the property of liquidity, and you can get back your whole or partial invested amount in these funds only within twenty-four hours from making application as per your requirement, but if you want to earn more profit, my advice is that such investments should be for long periods and you should avoid temporary ups and downs.
ULIP Plans
ULIP i.e. Unit Linked Plans. Such plans, as is being clarified by their name, are indirectly related to the stock market, but the idea of life insurance is also associated with them. The idea of insurance is a very powerful idea that has been used in various societies in a very different way in the past, but in Independent India, after the establishment of the Life Insurance Corporation by the Central Government, it has gained popularity. At first, LIC was the only life insurance company in India, but in the year 2000, the Government also allowed private sector companies to trade in this area, and today besides LIC of India, many other private companies are working in this filed in India.
Insurance is meant to provide security to insecurity and uncertainty of the life to a certain extent. By this, we save our plans from failure due to our death by giving very little annual premium to our insurance company. When an investment in the entire world does not guarantee you profit, and in all investments, when there is a low or high risk of loss, insurance is the only investment that gives you the minimum level of certainty and takes its risk to almost zero levels and not only this, but the insurance company provides the sum insured to your family immediately in case of an accident in your life.
ULIP plans operate your money in the stock market through its skilled financial managers and try to earn the maximum profit for you. Although the profit and loss earned on the plan depends on the ups and downs of the share market, but they keep your life insurance value unchanged and provide financial security to your family at the agreed limit for your life. IRDA (Insurance Regulatory and Development Authority of India) has also been set up by the Government of India to regulate and monitor the insurance companies.
Tarun Prakash Srivastava
From my book ‘Science of Money’ available on Amazon.com in English at http://bit.ly/Science-Of-Money and in Hindi at http://bit.ly/साइंस-ऑफ़-मनी
