Who does not want to create wealth? Everyone wants it but many struggle as they believe that only people having high salaries or having large businesses can achieve it. The fact is every one can create wealth,whatever your income level or risk-appetite be. Moreover, having the right investment approach, specifically a goal-based one and investment discipline is all that is required.

So, whatever stage you’re at in your wealth creation journey, as a safe investor, you must reacquaint yourself with the ideas given below to ensure you’re taking the right steps toward living the life you desire.

Keep Patience Your Biggest Investment Asset

If you are a safe investor wanting to grow your wealth, there’s one quality that you must have above all others- Patience. Though patience as a virtue can be difficult to master, it is required throughout the investing cycle. For instance, you must have the patience to do your research on investments before you buy. You must be patient and wait for the value of your investment to be realized.

Keep in mind, only focusing on short term results may hamper your progress toward long-term goals and limit the potential of your investment portfolio . That said, investing in a Unit Linked Insurance Plan or ULIP policy can help patient and safe investors considering the many benefits it offers over the long-term horizon. You can start investing in a ULIP policy by choosing funds of your choice, like debt, equity or balanced funds and invest towards your long-term goals like marriage, buying a house, children’s education or retirement.

Consistency Is Key to Investment Success

Investing randomly into different asset classes, investing without a clear time horizon, not following a disciplined approach to investing, and exiting abruptly from an investment are big fallacies in any investment process. The resultant hurried exit often denies investors an opportunity to benefit from the long-term potential of any investment.

Plan Your Investments Better and Revise Regularly

Before you invest in a ULIP policy or any other type of investment product, sit down and take an honest look at your entire financial situation, particularly if you have never made a financial plan before. The first step to successful investing is figuring out your goals and risk tolerance. Getting the facts about investing and following them with an intelligent plan, can help gain financial security over the years. Also, revise or rebalance your portfolio regularly, at least once a year, to ensure that one or more asset categories do not overemphasize it, and your portfolio is returned to a comfortable level of risk.

Ensure Maximum Tax Saving

Before making any investments, keep in mind the taxability of maturity proceeds and return to be generated from such investments. This will help plan your overall returns from the investment made. Put simply, invest in a product that allows tax benefits at the time of investment as well as on maturity. Again, a ULIP policy perfectly fits the puzzle here as a deduction of Rs 1.5 lakhs is allowed annually for the premiums paid, and withdrawal or maturity benefits are tax-exempt as well.

Invest a Little in Equity

While equity investments carry risk, avoiding this asset class altogether is no less risky from a long-term perspective. Mainly because the Indian equity market has produced better returns historically compared to other asset classes and is relied upon to do likewise in the future. So, while you are gearing to increase your wealth, allocate at least a minimum of 10percent of your investment portfolio to equity schemes.

Concluding

Today, when investors are constantly bombarded with recommendations on “the best”, funds or insurance policies, finding out what is good for you remains the key to success. Although this can be a little tricky, understanding the basic nature of the investment product and matching its suitability with your goals and circumstances can do the trick.