One of the most critical aspects of personal finance is tax planning. But most of us never plan investment for tax planning. However, investing in mutual funds through Systematic Investment Plan (SIP) is considered to be one of the safest, easiest and transparent modes of investment. The SIP includes less risk as compared to other modes of investment. Hence, it provides returns more than additional investments.
SIP includes different schemes under it for a different purpose. Let us know about the different SIP plans.
What are the SIP plans for different age groups?
- For 23-30 years:
This age group people are in the starting phase of the career. So, it is precisely the right time to start saving and investing in funds for a better future after retirement, and you will be able to enjoy huge profits. To make an investment in a mix of ELSS and pension-related schemes like PPF and EPF is a better option for investment. - For 31-45 years:
These age groups of investors are mostly considered to be a home buyer. It is advised to take a home loan on a joint account. Since the plans under 80C make them liable to pay taxes, it will make the situation difficult for them. Hence, it is advised to take a health insurance cover for self and family, which comes under the section of 80D. - For 46-60 years:
During this phase, a non-investment taxes saving plays a major role. They have responsibilities like pursuing their children’s studies or marriage of their child. Hence, if they have an option to opt for section 80C, then they can go for investments pertaining to retirement. - For 60+ years:
After retirement, the motto of this age group should be capital protection. Senior Citizen Saving Schemes (SCSS), backed by the government gives high security for capital that is necessary after post-retirement.
Therefore, now you know what are the SIP plans for different age groups. Making investments is a critical task, and it is essential to properly know about all investment-related issues before putting your money somewhere.
