Investments like FD, Public Provident Fund and government bonds come under the category of Guaranteed Returns Insurance. If you have small capital and want to collect money little by little then guaranteed return products are a better option for you. You will not get much return in this type of investment but your principal amount will always be safe and you will also get simple interest along with it.
Guaranteed Return Plan: You get less interest in Guaranteed Returns Insurance Schemes, but there is no risk in them. If you are going to make such an investment in the near future, then we have brought some important information for you in this article. Let us know the advantages and disadvantages of guaranteed return products.
What is Guaranteed Returns Insurance?
Investments like FD, Public Provident Fund and government bonds come under the category of Guaranteed Returns Insurance. There is no risk in this type of investment. If you understand in simple language, as the money is collected, minor interest is also earned. All the investments given below are called guaranteed return products-
Guaranteed return product
- PPF
- Fixed deposit
- Government bonds
- Endowment Insurance Plan
- Post office scheme
- EPFO
- NPS
- Senior Citizen Scheme
- RBI taxable bond
Who is the guaranteed return product suitable for?
If you have small capital and want to collect money little by little, then guaranteed return products are a better option for you. You may not get much return in this type of investment, but your principal amount will always be safe and you will also get simple interest along with it.
If you have retired from job and want to invest a lump sum without any risk, then guaranteed return products are a better option for you. By choosing any of the products mentioned above, you will be able to fight inflation with stable income.
Who should not buy guaranteed return product?
If you want to get better returns by investing money, then Guaranteed Returns Insurance is not for you. We are saying this because many guaranteed return products will give you interest less than the inflation rate.
On the other hand, guaranteed return products are not a good option for people looking to build a good portfolio and get better returns by taking risks.
