2. Cost is one of the important factors to consider as it directly impacts returns. The typical costs in a product are at the time of investment, costs to manage the investment and costs at withdrawal and it is important to know all.
3. The ideal time horizon for investing is a critical factor as liquid and income-generating assets are good for the short term but growth assets are good for longer horizons.
4. Liquidity is another factor to consider before investing as one should know the ease with which one can encash the investment at a time of need and the penalties associated with early withdrawal.
5. Tax consideration for the product is key to knowing what is the in hand return you get from investing in the product and whether it makes sense to invest or not.
(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
