Key Benefits of Staying Invested in a Long Term Investment Plan

An advice that you will routinely hear from financial experts is that you should stay invested in a long-term investment plan instead of withdrawing midway. There is no denying that there can be unforeseen circumstances that leave you with no alternative but to withdraw your investments. However, the beauty of a long-term investment plan is that the longer you stay invested, the better your returns are. Here are a few more benefits that you should know about.

Achieve major financial goals easily

When you invest for a longer time period, you can achieve your bigger goals. You have the time to keep up regular investments along with meeting your day-to-day expenditure. Now, putting aside a lump sum amount at one go might not be possible for most people. However, when you go for a long-term plan, you don’t need to think about keeping a lump sum aside. As long as you keep a fixed amount aside regularly, you can accumulate a good sum within a particular duration.

Moreover, when you go with something like a guaranteed savings plan, you are choosing investment plans that are not market-linked. So, the long-term fluctuations in the market will not stand in the way of letting you achieve your goals. There is no need to sweat over constantly tracking market movement.

Ensuring that you do not lose out on the benefits

One of the advantages of a guaranteed savings plan is that, if you want, then you can stop paying the premiums after three years. In that case, you will get returns as per the premiums you have paid for three years. You will still get the returns and will not be considered a defaulter as it happens in other cases.

But you can accumulate a much bigger sum by simply staying invested and continuing those premiums. Of course, you might have some financial emergencies that make it hard for you to keep up the premium payments. Apart from such an unavoidable situation, try not to stop the premium payments suddenly.

Long-term investments are a sure way to fight off inflation

With a guaranteed savings plan, your maturity benefits include the basic sum assured, loyalty additions, and guaranteed additions. As mentioned before, regardless of the market situation, you can be assured of receiving these benefits as a part of your plan. Thus, such a long-term savings plan can help you fight inflation like no other.

Simply keeping your money in the bank account is not enough when the aim is to fight inflation. Thus, you need an investment plan that keeps your money safe and grows it assuredly over the years.

A way to save up for the retirement

You can have a guaranteed savings plan for a term of fifteen years, twenty years, or more. In that way, you can use it to save up for your retirement. For instance, say you got a guaranteed savings plan for twenty years when you are forty. The plan will mature at the right time for you to secure your retirement.

Visit here to invest in Kotak Guaranteed Savings Plan.

After you retire, you can use this money to pay off your debts or go on that trip you have been planning for a long time.

So, if you have a long-term investment plan, then do not withdraw midway. Stay invested and get better returns!

Click here to know more about Kotak Life Guaranteed Savings Plan:

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