November 15th, 2018 | Updated on January 29th, 2020
Everyone wants to invest money nowadays to help in building a brighter future for themselves and their families. Keeping money aside on a regular basis to store up for the future is one of the important tactics for those who want a better future.
Now, in India, there are different ways in which an investment of any sort can take place. There are also many companies in India that help an individual in investing their money for a smarter and better future.
An NPS calculator calculates the amount that the insured will get at the time of their retirement. This calculator takes into account the amount of money that is being invested, adds the interest rate on it and then shows the results when necessary.
These NPS calculators usually come with investment schemes from different companies that are all meant to help the individual for a brighter future.
Need for Investment Planning
Having an investment plan that is meant to stabilize the future of any individual is very important. Everyone has a certain amount of goals that they have set for themselves and their families. To make sure that these goals are achieved without the hindrance of finances, investment plans were introduced.
For those who want to have a future without worries and a future where finances are stable, an investment plan important. An investment plan is where the policyholder pays a certain amount of money on a monthly basis until the maturity of the plan without fail. This money added with the interest of the investment policy is then accumulated over time and ultimately given back to the insurance holder at the time of maturity.
There are different types of investment plans that are dispatched from different companies. There are certain plans where the amount that is being invested cannot be claimed before the maturity of the plan while in other investment plans, the amount can be withdrawn anytime. In such a case, the investment plan acts more like a plan than an investment plan.
Need for NPS
For those individuals who want to make sure that their future is bright and that they can live the same lifestyle that they are living even after they have retired, having a good investment plan that keeps building on with time, is an absolute necessity.
For those who are retiring from their current jobs, they are given a total of ten months in order to save money and make sure that they can lead a carefree retired life. However, it is always better for everyone to invest regularly in a fund of any sort to reap the benefits later.
An NPS calculator calculates the amount of money that any investment plan will give back an individual at the end of 60 years. This calculator takes into account a number of factors in order to properly determine the rough amount for the same. Now, there are also online NPS calculators where the amount can be calculated easily. Some of the details that need to be filled by anyone who wants to calculate their NPS online include:
- The age of the investor.
- The retirement age of the investor.
- The amount of money that is invested on a monthly or a regular basis.
- The interest rate that is levied upon the investment plan.
- Types of Schemes that are under NPS
There are two types of NPS accounts that are offered to individuals. These two accounts are named Tier-I and Tier-II respectively. Those individuals who invest their money in a Tier-I investment account are investing in a free account.
This account allows the policyholder to make withdrawals from their investment policy at any given time under a specific amount of restrictions. The Tier-I type of investment policy is one that is quite famous among corporates who are investing towards the future of their employees.
For anyone who already has an active Tier-I account for themselves, they can upgrade their investment options to a Tier-II income plan. In this plan, there are voluntary investors and there are no restrictions to any sort of withdrawal that is made on the investment policy.
Benefits of Investment Plans
The prime purpose of being insured under an investment plan is to be safe and secure in the future. Some of the many benefits of being insured under an investment plan of any sort include –
- An investment plan acts as a protection plan. This plan can help in securing the future of not only the individual who is insured, but it can also help to secure the futures of the loved ones of the insured. In case the insured faces financial problems in the future or enters a financially difficult situation, the investment plans take over.
- Investment plans are all based upon the goals of an individual. The goals that an individual has decides the amount of money that is supposed to be paid to the investment itself and it is also centered around the goals and objectives of the individual who is about to be insured.
- Investment plans or any sort are helping people to build a brighter future for themselves and their families. Those who are insured under an investment plan or any sort are also exempted from paying a certain amount of money in the form of taxes to the Government of India. This exemption is under Section 80C of the Income Tax Act of India.
Best Investment Plans of India
India is home to some of the best and the widest range of plans in terms of insurance. In India, there are a number of companies that offer various types of investment plans to customers. The internet also helps individuals to choose the investment plan that suits them the best. Though there are a great number and variety of investment plans that are there in the market today, some of the best investment plans available in India by popular demand include:
- HDFC Life Click2invest
- SBI eWealth
- Bajaj Future Gain
- Aegon iInvest
- ICICI Pru Smart Life