Making money is not enough if you have no idea how to invest it wisely. A smart man always makes sure to be fully prepared for future financial needs and at every step and finds out a way to double his hard earned money. However, the biggest mystery is how and where to invest? Your financial planning will only be successful if you have bit of knowledge about investment planning options. So, if you are seeking some advice to get the best returns on your investment, your search ends here.

Before exploring the options available in the market for financial planning, let's talk about the types of investment plans. Basically, these are of two types-

1. ULIP (Unit Linked Investment Planning) – Here, your premium is invested in various kinds of funds such as stocks, shares, etc and you receive money on the basis of the performance of these funds. Thus, it is volatile in nature.
2. Traditional Investment- It ensures you receive the promised return amount after the maturity and thus is a low-risk investment plan.

Options Available For Financial Planning

• Child Plan– When it comes to planning for a stable future, people should never ignore child insurance. This plan is one of the best investments to ensure that your child's needs (education, wedding etc) can be fulfilled.
• Retirement Plan– You earn all your life in a hope to enjoy your later years in peace and joy. But, how's that possible if you have no money? Thus, investing for your retirement can give you benefits and a strong financial support to rely on.
• Guaranteed Return Plan– In the market, there are many plans that give you guaranteed return after specified period. It is best for people who can't afford to take high risk and want a stable source of income.
• High Potential Plan– If you have money and love to live on the edge, this investment plan is the one for you. It is volatile in nature and gives a scope of high return, but only if you are ready to take risks. Here, your premiums are invested in funds and the return depends on the performance of the funds.

Beside these, one can also invest in gold or fixed deposit in bank. These investments can be short-term as well as long-term depending how exactly a person invests.

Risk Involved in Investment Plans

Investment also brings risk along with it. If you invest, be sure, you might have to face some trouble. Few of these risks are as follows-

• Unstable market- One can never predict the future. Thus, if the market will go down so will your investment with high chance of you losing your money.
• Inflation- Sometimes due to inflation you might not get as much return as you expected. If the inflation rises the value of currency decreases.
• No benefit if policy collapse- If the policy collapse before the maturity period, you might not get any returns and might face loss.

How to Select the Investment Plan?

There are so many investment plans available in the market such that it becomes difficult to choose which one is right for you. Every plan has its own pros and cons and will suit people depending on their requirements. So before you select any plan, ask these questions-

• What are your final goals? Do you want to invest for your post retirement days or you want to secure for your child or simply want to double your money?
• Do you want to invest for short-term or for long-term? If you have short term goals go for term plans and if your requirement is for a long period, then go for 10-30 year plans.
• How much risk you can afford? If you have money or are young, go for ULIP plans as they give high-return, but being volatile in nature also involves high risk. Similarly, if you are old or financially weak, go for conventional plans as low-risk is involved with stable return.

Anybody can invest, but what makes a successful investor different from the not so successful one is how wisely he/she invests. Investment is a long term aspect and careful considerations should be made before choosing nay mode of investment as it will have a direct effect on your finances.