8 Important Things to Remember While Investing in a Savings Investment Plan

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

8 Things to Help You Select a Savings Investment plan

8 Things to Help You Select a Savings Investment plan
  • 20th Jun 2019 |
  • 5,126

To achieve your short-term and long-term goals, it is important to invest in a savings plan. You can choose from various schemes and instruments available in India. However, it is important to carry out thorough market research and understand the features of the plan before making a decision.

Here are 8 factors that will help you choose the right savings plan for your financial needs.

Savings plans help you earn good returns over the long term. These plans can help you prepare for achieving life goals, save for that dream car or a destination wedding. Well, the last one might be too much, but why not? The right investments can help you achieve financial goals at the right time.

Now, if you are tempted to get one right away, hold your horses. You can keep the following factors in mind before choosing a savings investment plan that is best for you.

Your goals

Set long-term and short-term financial goals. It will bring in a lot of clarity and help you choose the right investment plan. Your goals will help you decide on the plan you need to buy. The process might sound tedious now, but it will pay later.

You can keep looking for a plan that helps you achieve your short and long-term goals. Prioritize these goals, and you will know what you need to do next. But wait, now that you have the goals in place, let’s go to the next step.

The balance between risk and reward

Now that you know that you want to buy a house or that dream car let’s help you go ahead and judge the risk and rewards.

When you choose an investment product, you need to invest very carefully and maintain a balance between the risk and reward associated with the same. Consider your risk appetite when you choose a plan. Risk appetite determines your ability to invest in taking financial risks. For example, if you are willing to invest more for more returns without hurting your financial stability, your risk appetite is high. If you have many financial commitments and cannot afford to lose money, you have a low-risk appetite.


Your savings plan should have adequate liquidity to satisfy your needs. You need to ensure that the plan provides funds to you in times of emergency. Consider your liquidity requirement before you choose a plan. For example, if you cannot withdraw funds in the case of an emergency, the aim of investing is lost.

If you are looking for short-term goals, liquidity should be your first factor to consider.

Understand the tax deduction offered

When you make a savings investment, consider the tax benefit offered by the investment product. Various investment products, such as life insurance and health insurance, offer a tax benefit. Investing in such products will not only reduce your tax amount but will also protect you in case of a medical emergency.

Look out for the diversity aspect

Your money-saving plan should not be restricted to one investment product. You will have to diversify your investment to reduce the risk associated with the same. Consider all the investment options which serve your purpose and diversify the investment. One of the major reasons to diversify your investments is that they help in coping up with market crashes and recession-type situations.

Performance of the plan

It is important to review your portfolio at least once a year in order to make necessary changes as and when required. Once you make an investment, you should not simply forget about the same. Review the portfolio regularly and then take necessary action to maximize your profits.

Check the charges

You should keep inflation in mind while investing in a savings plan. If the inflation is lower than the rates of return offered by the investment plan you choose, invest in it now. Real wealth would be produced by the investment. There won’t be any genuine wealth growth or capital accumulation if the inflation rate exceeds the rate of return.

Terms and conditions

This is a very important thing to remember when you buy a plan. Ask all the necessary questions before choosing a plan. Investment plans are complex as there are various terms and conditions attached to them. Hence, buy a plan only when you are well aware of what it is offering. Clear your doubts about the plan before you put your money into it.

Making an investment requires market research and an understanding of different plans. To make the right investment decision, you need to consider your financial goals and then look at the available alternatives for you. Making the right investment will help your wealth grow over a period of time.


1. What are investment funds offered under the Investment Plan?

Well-known investing alternatives include mutual funds, the Public Provident Fund, corporate and government bonds, exchange-traded funds, and the National Pension Scheme. The returns offered, level of risk, tenure, taxation, and whether the returns are guaranteed or market-linked are all different for each of them.

2.What is the safest investment with the highest return?

  • High-yield savings accounts
  • Short-term certificates of deposit
  • Money market funds
  • Corporate bonds
  • Dividend-paying stocks

3.What is Risk Appetite?

Risk appetite is the amount of risk that a company is willing to take on in order to achieve its goals before taking steps to lessen the risk. It represents a balance between the threats that change invariably brings and the possible rewards of innovation.

4.When should you consider liquidity while choosing a savings plan?

When investing, liquidity is crucial to access the capital you accumulate. You may become cash-poor if all of your assets are invested in long-term or highly illiquid securities. Your ability to invest money into a new investment opportunity may be considerably reduced as a result.

Invest in savings plan today and improve all your tomorrows!

5.What to look for when choosing a savings account?

Here are five things to consider while choosing the right savings plan

  • Interest rate
  • Fees and charges
  • Accessing your money
  • Opening deposit
  • Government guarantee

Download Brochure


  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999


Browse our library of resources

Download Brochure


  • Enhanced Protection Through Riders
  • Life Cover
  • Tax Savings
  • Multiple Premium Payment Terms
  • Guaranteed @ Loyalty Addion
  • Accrued Guaranteed @ Additions

Ref. No. KLI/22-23/E-BB/490


- A Consumer Education Initiative series by Kotak Life

Similar Articles

How to View 26AS and Download Form 26AS Online?

What is Form 26AS - All You Need To Know

Tax Saving Options for Salaried Employees

How to e file ITR on Income Tax Government Portal

Pradhan Mantri Suraksha Bima Yojana

What is the Last ITR Filing Date and Penalty for Late Filing of ITR?

How to File Form 16 for Salaried Employees?

How to File Income Tax Return for First Time Tax Payers

Investment Proofs You Need Submit To Lower TDS Cut From Your Salary

सुकन्या समृद्धि योजना (SSY) के कर लाभ क्या हैं?

Can You Get Term Insurance Without Income Proof?

Things to Do After Filing Income Tax Returns

Why is Form 16 Important?

How Much Money This Budget 2019 Can Help You Save

प्रत्यक्ष कर और अप्रत्यक्ष कर में क्या अंतर है?

भारत में महिलाओं के लिए सरकारी योजना

Section 80C Deductions as per Income Tax Act, 1961

ITR 2 Form – Complete Guide

How to Check Income Tax Refund Status Online in India

How can I get Form 16B from traces?

Income Tax Filing Using Multiple Form 16

Save Income Tax by 31st March: Here Is a Checklist

What is the TDS Rate on Salary?

Financial Planning and Best investment options for Housewives

धारा 80डी आयकर अधिनियम, 1961

How to Check Income Tax Refund Status Online in India

Why Tax Planning Should Be an All-year Round Activity

आयकर स्लैब 2021-2022

ITR 1: Sahaj Form

Tax Planning and Tax Benefits of Life Insurance

Tax Season Is Coming- Know How to Save Tax

Tax Structure in India

Tax Benefits for Startups in India

How to Claim TDS Refund for Excess TDS Deduction?

Understanding Tax Exemptions in ULIP (Old and New)

Types of Riders in Insurance Policy

What are the Different Types of Taxes in India?

ITR-6: Guide to filing ITR-6 Form online

What is the Difference Direct Tax and Indirect Tax

What is ITR 5 Form and How to File ITR 5?

How to File TDS Return?

आयकर रिटर्न (आईटीआर) फॉर्म के प्रकार

What is Section 10D of the Income Tax Act?

What To Do If Your TDS Is Not Deposited With The Government?

Section 16 of the Income Tax Act (ITA), 1961

How to Download Form 16?

Guaranteed Return Plans-Why is it a must for you?

Are Financial Planning and Tax Planning the Same Thing?

How to File Form 10E for Tax Relief on Salary Arrears?

Presumptive Taxation for Business and Profession

What is HRA (House Rent Allowance) and How is HRA Exemption Calculated?

Budget 2019: Impact on the Common Man in India

Why January Is an Important Month for Saving Tax?

Problems People Face with Tax Returns after a Job Change

How to save tax for salaried person?

What is TDS Slab?

All about TDS on Salary under Section 192 – Kotak Life

How to Save Tax on Salary Arrears?

What Investment Options Come with Tax Incentives?

How to Pay Advance Tax Online in India

All about TDS Payment Online & Due Dates

All You Need to Know About Section 80C

How to file Form 16 online?

Union Budget Highlights – 1st February 2022

Tax Saving Guide for 2019-20

Financial Benefits and Government Schemes Every Woman in India Should Know

Income Tax Deductions Under Section 80C

What is TDS Refund Process?

Tax Deductions You MUST Know

धारा 80सी आयकर अधिनियम, 1961

What are Direct Taxes? How to Avoid being Overtaxed?

Saving Income tax in 2017 - 18

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2021-22 & 2022-23

Income Tax Exemption for Physically Handicapped Dependent

Income Tax Slabs and Rates in India for FY 2021-22/AY 2022-23

5 Popular Tax-Saving Schemes in India

Income Tax Deductions for Disabled Person Under Section 80U

Investing Lump Sum Amount

What is Section 80C - Explained in Detail

What is Tax Evasion and What Are The Penalties For Tax Evasion In India?

What is Section 195 of the Income Tax Act? TDS on Non-Residents of India

What is the Difference between Form 16 and Form 16A?

TDS Due Dates of FY 2020-21 For Return Filing

Tax-Savings Investments and Options in India

Income Tax Benefits for Doctors

How to File Income Tax Return without Form 16

Interest Imposed Under Sections 234A, 234B and 234C

A Guide to Life Insurance Policy’s Tax Benefits and Taxability

E-Filing of Income Tax Returns in India

Section 44AD of Income Tax Act for AY 2021-22

How To Save Tax Better with 80C

Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

How To Save Tax Using Life Insurance?

What is ITR & How to File Income Tax Return?

Section 10 (10d) of Income Tax Act, 1961 on Payouts of Life Insurance Policy

Sub-sections Under Section 80C of the Income Tax Act, 1961

5 Unusual Investments You Didn't Know for Saving Taxes in India

How to Save Income Tax with Insurance

Tax Benefit of Investing in Term Plan

Tax Saving Options other than Section 80C

9 Income Tax Myths That Could Cost You Money while Filing returns

Tax Saving Tips: Best Ways to Save Income Tax for 2021

What is TDS Exemption Limit?

Insurance and Endowment: Everything You Need to Know!

What is Tax Deduction at Source (TDS)?

List of Important Income Tax FAQs

Top 8 Tax-Saving Methods in India- Budget Planning

LTC Cash Voucher Scheme October 2020 – Everything You Need to Know

Income-Tax Liability- The Difference Between Gross Income & Total Income in Calculating Income Tax

Guide for Tax Calculation on your Salary

A Complete Guide for Filing ITR 3 Form

Tax Saving for Self Employed in India

How to File Income Tax Return - Everything You Need to Know

Tax Benefits of ULIP Plans Available for NRIs

Everything You Need to Know About Tax Benefits of National Pension Scheme (NPS)

Challan 280 - How to Use Challan 280 to Pay Income Tax

52 Weeks Savings Plan: Daily Savings Plans for a Better Tomorrow

Difference between Section 80C, 80CCC, 80CCD & 80D

What is Section 80C Deduction Limit?

What is the Percentage of Tax Deducted at Source (TDS)?

Do Beneficiaries Pay Taxes on Life Insurance?

Impact of GST on Life Insurance in India

Tips to plan your savings in 2019

Income Tax Exemption for Disabled

Income Tax Deduction Under Section 80CCC In India

How to View 26AS and Download Form 26AS Online

Section 80G of the Income Tax Act

What is Salary Protection Insurance and Why You Need It

What Is Advance Tax and How Is It Calculated?

What is Form 16A?

Have You Considered Term Insurance a Part of Your Tax Planning?

Penalty For Late Filing TDS Return

Section 80E: Tax Exemption on Interest on Education Loan

How to Check Income Tax Returns Status Onine?

इनकम टैक्स रिटर्न कैसे फाइल करें?

Tax Exemption and Scope of Coverage

Income Tax Filing For NRI in India

What is Section 80C Deduction?

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D

Home Investment Plan to Buy Dream Home

Tax-Free Income in India

A Comprehensive Guide to Understand the ITR 7 Form

Types of Income Tax Return (ITR) Forms

Who Should Invest In Savings Plan

When Should TDS be Deducted and Who is Liable to Deduct it?

How to e-Verify your Income Tax Return

How to Get Form 16?

How to File ITR Online

What is Section 80CCC of the Income Tax Act 1961

What is Form 16B?