- Power of compounding: as well said by Albert Einstein, “Compound interest is the eighth wonder of the world”. The more time you give for your investments to grow, the higher the amount you would get. for example: if you invest monthly $500 at a 10% rate can grow to $192,700 after 15 years.
- Securing from short term volatility: always in short term the returns are low, it is difficult, to time the market correctly, so in order to get the best returns, it is good to invest for a long term. by stay and investing in log-term duration, we gain more returns and we can overcome short-term volatility. Short term pain long term gain.
- Goal-Centric planning: Since you are investing for a long term plan, you can easily set your goals, you can achieve it such as like Child education plan, marriage, home and Retirement and pension plan.
- Total Tax-Free Benefit: In certain countries, the amount what invested in the short-term is taxable, In UAE these investment plans and maturity amounts are totally tax-free.
- Tracking & Convenience: Generally, SIP- systematic investing plans for the Long- term, you just need to setup one-time standing instruction to the bank to facilitate auto-debit from the bank account or credit card instruction will do. Also, you can easily track your investment plan growth.
- Partial withdrawal: Most of the long term investment plans are allowed partial withdrawal after a certain period. In case of emergency for the funds you can always withdraw from the plan.
- Loyalty Bonus: since you are investing on a long-term basis, most of the companies are giving Loyalty bonus, which your money grows without any further investment.
- Flexible Investment options: Most of the long-term investment plans have diversified sector of fund options such as – Equity, Bonds, real estate, Debt and Balanced funds – as per your risk appetite. They also let you switch between funds as per the market condition. Staying invested for a longer duration with a switching option can help you reap maximum benefits.
- Life Cover: Apart from growing your wealth, some of the Long-term Protection plans are useful in securing your family’s future in your absence. In the case of your sudden demise, your family will get a lump sum amount to secure their future. If you look for insurance plans you can go here, Top Best Term insurance plans UAE:
The most important is, while investing, you have to consider the following points.
1. What is the main goal and object of the investment?
2. When you want the money back? Purpose?
3. What kind of returns are expecting?
It’s always most important, to do your personal financial planning in UAE, so that you will have complete understanding on Investment plans, then you can start the journey to reach your goals and objective
“Don’t wait until everything is just right. It will never be perfect. There will always be challenges, obstacles, and less than perfect conditions. So what. Get started now. With each step you take, you will grow stronger and stronger, more and more skilled, more and more self-confident and more and more successful.” – Mark Victor Hansen
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