Term Insurance + Mutual Funds (Equity & Debt) + PPF
The most simple and the most powerful financial planning formula to build wealth , save tax and cover your life (insurance) is,
Term Insurance + Mutual Funds (Equity & Debt) + PPF
No other financial product is as cheap and as effective than the above simple combination. Term insurance will provide you adequate Life cover. PPF will save your tax and Mutual fund can build enormous wealth for you in the long run.
Importance of Term Insurance
One is never sure about life. We often come across people claiming that nothing is going to happen to them; that they are too young to pass away. But do they really know what the future holds for them? Individuals need to insure themselves to secure the future of those who are dependant on them; especially if they happen to be to only earners in thire family. You wouldn’t want your family to go through hardships or rely on others/relatives, etc. This, in fact, is the MAIN reason why one should buy an insurance policy! Also TAX saving is the another added advantage of term insurance.
Public Provident Fund
PPF is one of the best tax saving financial product in India. The mimium limit of PPF is Rs.500 and maximum limit of PPF is Rs.70,000 per annum which is tax free under section 80C and not only this but it also gives you 8% annual compounded returns which is best in India.
Mutual funds
Mutual funds in India are so much professionally managed, highly regulated by SEBI and cost effective (Entry & Exit loads are 0% after 365 days).No need to learn direct equity investing now a days. Equity mutual funds will do all the job for you. Equity multual fund can build enormous wealth for you in the long run that you can fulfill all of your and your child’s financial goals.
The most simple and the most powerful financial planning formula to build wealth , save tax and cover your life (insurance) is,
Term Insurance + Mutual Funds (Equity & Debt) + PPF
No other financial product is as cheap and as effective than the above simple combination. Term insurance will provide you adequate Life cover. PPF will save your tax and Mutual fund can build enormous wealth for you in the long run.
One is never sure about life. We often come across people claiming that nothing is going to happen to them; that they are too young to pass away. But do they really know what the future holds for them? Individuals need to insure themselves to secure the future of those who are dependant on them; especially if they happen to be to only earners in thire family. You wouldn’t want your family to go through hardships or rely on others/relatives, etc. This, in fact, is the MAIN reason why one should buy an insurance policy! Also TAX saving is the another added advantage of term insurance.
Public Provident Fund
PPF is one of the best tax saving financial product in India. The mimium limit of PPF is Rs.500 and maximum limit of PPF is Rs.70,000 per annum which is tax free under section 80C and not only this but it also gives you 8% annual compounded returns which is best in India.
Mutual funds
Mutual funds in India are so much professionally managed, highly regulated by SEBI and cost effective (Entry & Exit loads are 0% after 365 days).No need to learn direct equity investing now a days. Equity mutual funds will do all the job for you. Equity multual fund can build enormous wealth for you in the long run that you can fulfill all of your and your child’s financial goals. 
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