Mutual Fund is a good scheme for better returns. If you invest in it through Systematic Investment Plans (SIP), then you get more benefits.
investing in mutual funds
Mutual funds are considered to be a good option for better returns. Especially if you invest in it through Systematic Investment Plans (SIP), then you can get more profit. In this, you also get other facilities including free insurance up to 50 lakhs. Many mutual fund companies offer additional benefits as SIP insurance cover. Whereas in some it will be available as a term insurance and in others as a group insurance policy.
If the investment through SIP is done for a fixed period, then the investors will not have to pay any premium and the insurance coverage will be available free of cost. This free insurance cover is given by the fund house on select schemes. Usually this benefit will be available when the investor has opted for SIP of 36 months. In this, the life insurance amount keeps on increasing after the first year.
Know who can take advantage of the scheme
Although anyone between the age group of 18 to 50 years can take advantage of SIP insurance, but the period of coverage can be till you are 55 or 60 years of age. In this, the maximum coverage limit is decided by different fund houses. While some companies offer coverage up to Rs 21 lakh, other fund houses are offering insurance up to Rs 50 lakh.
Know how to make profit
The life insurance amount keeps on increasing after the first year. In such a situation, suppose the coverage can increase by 20 times in the first year, 75 times in the second year and 120 times from the third year. So if the monthly SIP amount is Rs 10,000, the coverage will be Rs 2 lakh in the first year, Rs 7.5 lakh in the second and Rs 12 lakh from the third year. In this way the maximum coverage will be 50 lakhs.
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