Importance of Investment


5 min read

Updated on Sep 02, 2022

Importance of Investment, Investing Chart and Best Investment Plans to Choose in 2022

Earning from a single source is not enough in today’s world when inflation is soaring high, and the economy is getting hit by factors like geo-political tensions, pandemic etc. Even after putting in an additional number of work hours, the earning is not enough to take care of all the needs and wishes. To make your dreams come true, hard work is not enough, you need proper investments to earn money smartly. Millennials are now realizing the importance of investment to get a passive source of income. We need funds at every stage of life, be it for marriage, maternity, child’s education, or retirement. Investments are well-crafted wealth-building plans that help your funds to grow over the years without you doing any additional hard work. In this article, we aim to acquaint you with the importance of investment in India. But, before we do that, let us have a look and understand what is meant by an investment?

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What is an Investment?

Before we jump on to learn about the benefits of investment, we want you to understand what is meant by investment? Anything bought as an asset to generate some value and income in the coming days or years is considered to be an investment. The aim is to increase wealth and save some extra money through investments in profitable ventures and schemes. Some common types of investments are in the form of shares, properties, fixed deposits, bonds, mutual funds, and growth investments.

What is an Investing Chart?

To make the right investment decisions, there is a common practice to make investing charts. These investing charts are made by examining the trends and statistics in security prices and various investment plans. With a good investing chart, a potential investor can plan a good and profitable investment. An investing chart holds vital importance in investment managementThey are particularly beneficial for those who are interested in investing in the stock market to identify the companies with profitable shares and stocks.

Why is an Investment Important?

Have a look at the main benefits of investment:

  1. Long-Term Return on Investment: The first advantage of doing a profitable investment is the long-term returns on your investments. These investments grow in value over a longer period of investment. They are also not affected by the fluctuations in the overall economy of the country.
  2. Second Source of Income: Those hardly able to make their two-ends meet with their single income can have great hopes with the right investment plans. For them, a good investment plan can help them get a second source of income.
  3. Make Way for Your Child’s Education: Not to forget the importance of investment in Indiafor a child’s education. The moment a child is born, every parent starts dreaming about the child’s future. To make dreams come true, it is necessary to arrange for the funds for your child’s schooling, college, and higher education. This is where buying an education investment plan at the right time plays a major role.
  4. Secure Your Family’s Future: The pandemic has taught us that life is uncertain. So, if you care for your family, and want to secure your future even in your absence, go for an investment plan like a term insurance plan. It will help your family fulfill their dreams without financial constraints in case of the policyholder’s sudden demise.
  5. Saves Money for Retirement and Future Needs: The ultimate benefit of a good investment is to save money for your retirement. You can imagine living life king-size even after retirement if you have invested in some profitable ventures at the right time at a younger age.
  6. Tax-Saving Investments: If you choose some government investment plans like PPF, you can even reduce your taxable income. Such investment plans are eligible for tax deductions under Section 80C of the Income Tax Act.

Best Investment Plans for 2022

Having read so much about the importance of investmentwe assume you must be eager to learn the best investment plans for 2022. So, here is a list of top investment plans in 2022:

  1. Equity: The best investment plan for 2022 is an equity stock. These stocks help you become a direct shareholder in a company’s stake. The major con of this plan is that the investment fails with a downfall in the company’s performance. So those with high risk appetite can go for this as the returns are usually very high.
  2. Government Bonds: Offering fixed and guaranteed returns to an investor, a Government bond is an investment scheme supported by the RBI or the Reserve Bank of India. Government bonds help reap regular earnings through interests every six months.
  3. Mutual Funds: Another smart investment option for your idle money is mutual funds. They are less risky compared to equity bonds. There are three types of mutual funds, including, equity-based mutual funds, balanced funds, and debt-based mutual funds.
  4. PPF/Public Provident Fund: PPF is a safe investment plan crafted by the Indian Government. Valid for 15 years, a PPF account enables you to get tax-free returns on investments from Rs. 500 up to Rs. 1,50,000 per annum.
  5. ULIPs/Unit Linked Insurance Plans: This is a unique combination of an investment and insurance plan. The main benefits of a ULIP plan are that it offers coverage as well as investment benefits.
  6. Term InsuranceGive your family a financial shield with a term insurance plan. A good term insurance plan also offers benefits of the health insurance cover to the policyholder and family members.

Also read: Tax Deducted at Source (TDS) on Fixed Deposits (FD): A Detailed Guide


Bad times don’t come with a warning. Be it in the form of a recession or a natural calamity. Having invested in some great investment plans acts as a reliable second source of income. Provided you did every research about the pros and cons of your investment before investing your hard-earned money into it. For a person to grow, and a country to grow as a whole, investment plays a vital role. Personal investments boost the personal financial status of a person, and foreign investments help to increase the economic status of the nation as a whole.

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.


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Jul 13, 2022
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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