Saving and Investment Plan

Saving

Saving is the practice of putting money aside for use in the future. This is typically done using an asset that is easily accessible and with low-risk. Bonds are a popular saving instrument.

Investment

Investment is the practice of purchasing assets that may include stocks, mutual funds, etc. with a view towards receiving capital gain and returns. Investments are largely associated with a longer term than savings.

Investment is broadly divided into two:

1. Market-Linked International Mutual Funds

International Mutual Funds enable investors to invest in securities that aren’t limited to the home country but across geographical boundaries. Often, these funds are also known as Foreign Funds.

Here, NRI’s receive an advantage with multiple international solutions in dollar denominated currency to mitigate against currency depreciation. Further, NRI’s in UAE can invest in US dollar denominated Indian mutual funds.

Benefits:

  • Acts a hedge to mitigate losses against currency depreciation
  • Take advantage of profits by investing in securities of better performing economies
  • Diversify portfolio to include international stocks and reduce impact of volatility in the home country
  • Easy access to global blue-chip companies which aren’t listed on the domestic stock exchange.
  • Investment in companies with a credible history and consistent performance

2. Capital Guaranteed Bonus-Linked

These plans help you build your wealth without putting your capital at risk. They are not subject to market risk, making them a perfect investment for anyone averse to risk. Investors of these plans receive a bonus every year which is guaranteed. The following are a number of the Endowment Plans with Capital Guarantee

  • Educare
  • Participating Endowment Plan (PEN)
  • Pension Plan

A lot of times the difficulty in comprehending financial jargon can keep someone from taking advantage of several prosperous opportunities.

With Rafiya, you receive actionable insights and financial expertise that maximise every investment and ensure you invest in the ideal portfolio for your goals.

She can help you earn more interest, manage your savings in a more effective manner and plan your investment strategy based on your goals.

Key highlights

  • Build a diversified investment portfolio
  • Establish a risk-return profile customised to your preference
  • Reduce the tax burden with smarter investments
  • Plan for short and long-term goals
  • Reduce investment costs and maximise returns
  • Plan ahead in case of an unfortunate event