Are you sceptical about investing in the Kotak e-Invest plan? Delve into the depths of this article to understand why Kotak e-Invest plans are prudent.

The need for funds in the future can come in any form, from higher education to luxury vacations. When you invest in Kotak e-Invest plan, you guarantee the availability of funds during a time of need.

With a large portion of your income required to meet basic amenities, it isn’t easy to have any surplus for the future. However, a unit-linked insurance plan (ULIP) can increase your savings with time and guarantee the accumulation of hefty amounts. If you still can’t make up your mind about investing in such plans, then go through the reasons below:

  • Long-Term Savings to Secure Your Financial Future

ULIP is perfect for you to reach financial independence. It can help you satisfy all your future monetary requirements. The longer you stay invested in such plans, the higher your wealth will accumulate.

ULIPs also come with life insurance. It will be great for protecting your family against financial issues in an unforeseen situation. You also get payouts from the plans that can serve as a replacement for your income.

  • Lucrative Capital Market Returns

The market-linked investment plans like ULIPs can offer a substantial amount of profits. You can track your funds and transform them between different asset classes. With optimised earnings, you will be able to achieve considerable returns.

Furthermore, investments like ULIPs increase with profits. It happens because of the compound effect of bonuses. The compounding of revenues and long-term savings can help you gain a huge profit.

  • Periodic Savings

If you invest in Kotak e-invest plan, then there is a lock-in period. The lock-in period can help you save without liquidating funds. You will be able to grow the funds without ruining your savings. As a result, you will have fewer financial troubles during the latter part of your life.

  • Tax Benefits

The premiums you pay for ULIPs are eligible for tax deductions as per Section 80C. Furthermore, according to Section 10 (10D) of the Income Tax Act, your returns, including maturity and death benefits, are also subjected to tax exemptions.

  • Flexibility 

The ULIPs also come with a high level of flexibility. You can enjoy the following benefits from the plans:

  • Partial fund withdrawals
  • Switching between invested funds according to your risk tolerance
  • Various modes to pay the premium

You can select from various market-linked and guaranteed options aligned with your investment needs.

Parting Thoughts

ULIPs act as an effective defence from inflation. The plans influence you to make systematic investments in the capital market. Long-term investments will allow your capital to grow and stabilise. Death benefits, guaranteed payouts, freedom to switch funds, and many other benefits make the ULIPs attractive for everyone.

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