In the pool of investment strategies, choosing a better alternative plan to keep Principal Amount safe is one of the prudent aspects during this time of economic downturns triggered by COVID19. Scripbox, an online investment service, has launched its new Principal Protection and Growth Plan. With product diversification strategy, based on investors requirements, it will offer financial plans for investors who are looking to grow their wealth while prioritising safety.
Commenting on the launch, Prateek Mehta, Co-Founder of Scripbox, said: “Covid19 has heightened the need for better financial planning. With other investment instruments such as FDs, real estate, for example, offering sub-par returns, mutual funds provide better growth options over a longer period. Our new Principal Protection and Growth Plan offer customers an alternative to financial instruments such as FDs as is designed to best protect the principal, taking into account any manner in which equity markets fare during economic downturns. However, our customers also benefit from the advantage of compounding, as their gains get invested in index funds on a monthly basis. This launch is in line with our philosophy to help our customers in wealth creation in a hassle-free way to meet their financial goals,”
The Principal Protection and Growth plan will first invest the principal amount in top liquid funds, and then automatically move the earnings into index funds every month. It will also enable investors to take advantage of compounding by offering risk mitigation and liquidity with the principal in liquid funds, and growth through the earnings of liquid funds invested in index funds.
Scripbox also says, through staying invested in this plan for three years, investors would get indexation benefits on the liquid funds. Beyond, it offers tax benefits on the index funds too as the tax liability gets reduced due to the inflation-adjusted cost of asset acquisition. Under this plan, there won’t be any tax if the gains are less than Rs.1,00,000, and even for gains greater than that amount, the tax rate will only be 10%.
With Zero Lock-in option, It provides full flexibility to pause the plan or withdraw the investment anytime. In essence, this plan promises to offer an alternative to FDs and helps in capital protection along with capital appreciation in the long run.