RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

Market-Linked or Fixed Instruments-A comparison

down-arrow
Market-Linked or Fixed Instruments-A comparison
February 14, 2019
There are many ways to invest in Indian markets. Various types of options come with different parameters and different features. You must make a choice as per your own requirements and preferences. This enables you to garner higher and stable benefits over a period of time. This also ensures that you develop disciplined financial habits for the overall benefit of your loved ones. Generally, there are two types of investment modes where investors can invest their funds. These modes may be market-linked or fixed instruments.

Market-linked instruments offer the advantages of higher returns over a period of time and as such are ideal for high risk category of investors. Market-linked instruments are subject to market risks and fluctuations. These days more investors are looking for ways to access market opportunities while managing their risks. Maximum ambitious investors who want to earn lot of returns in minimal duration invest in market-linked instruments. These market-linked instruments may be equity-linked, debt-linked or a combination of both (also known as hybrid instruments). Generally ambitious investors like to invest in equity related instruments because such instruments offer quicker and higher returns. However because of the risk involved these kinds of investments are not suitable for people looking to towards safe investments. The market linked investment may be either a short term or long term, depending on the financial goals of the investors. Long term investments may offer some degree of risk-leverage but this leverage, being dependent on a fund's performance, cannot offer the kind of safety that is offered by fixed interest instruments.

While choosing an investment plan, one of the most important things to remember is to have a diverse portfolio that allows you sufficient coverage together with the growth options. A diverse investment portfolio means having a mixture of securities and funds that allow certain degree of market leverage. Fixed instrument plans do not offer market leverage because by their very nature, they focus on fund security, avoiding market risks and not on growth of funds. Fixed interest and non-market linked plan does not offer any flexibility of investment, thereby capping the possible returns over a period of time.

Fixed instrument investment is a safe investment for investors. It is refers to an investment strategy or style that is intended to provide an investor with relatively fixed and stable returns. Fixed investment instruments may be one of the following:

  1. Bonds (Government, municipal, company bonds)
  2. Debentures
  3. Bank Fixed Deposit (FD)
  4. Commercial Papers (unsecured debts)

As a potential investor, you may often wonder whether sticking to the idea of traditional savings plans is a good choice or whether you should opt for planned risks. The best option is to have a balanced investment portfolio that yields optimum returns over a period of time. Having such a kind of portfolio enables you to understand your financial requirements in better manner and also, serves to protect your financial interest.

HDFC Life presents HDFC Click 2 Invest ULIP - an online plan that offers market-linked returns over a period of time and allows your funds to grow in a healthy manner. For details, click on the mentioned link: https://www.hdfclife.com/savings-plans /click-2-invest-ulip-plan.

Show Full Article

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

Who Should Know Your Financial Secrets? Here’s Why It Matters!

Who Should Know Your Financial Secrets? Here’s Why It Matters!

Know who in your family should be aware of your financial secrets. Understand why sharing financial information is crucial for securing your family's future.

How Rising Interest Rates Impact Your Investments—and What You Should Do About It

Preserving Your Investment: How New Tax Rules Affect Real Estate Sales Before 2024

Financial Freedom for Women Entrepreneurs: Unlocking Success with the 50-30-20 Strategy

Learn financial freedom for women entrepreneurs with the 50-30-20 strategy. Discover expert tips for balancing dreams, responsibilities, and achieving long-term growth.

Financial Freedom for Women Entrepreneurs: Unlocking Success with the 50-30-20 Strategy
Everything You Need to Know About Gold Investment in India Previous
Fund performance - what must you do for stable growth Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches