For a financially secure life, finding a suitable investment tool that can help you earn a generous return is imperative. In this regard, you need to find the best investment plans in India that can make your money grow over time. With the help of these investment plans, you can achieve your financial goals effectively.
What Are Investment Plans?
An investment plan is a financial product that lets you meet your financial goals. This product also helps build wealth for the future by investing in different schemes regularly. In India, there are several long-term and short-term investment options which you can opt for, depending on your risk appetite and goals.
For instance, if you are a minimal risk taker, you can invest in Fixed Deposits (FDs) and Recurring Deposits (RD). On the other hand, if you have a higher risk appetite and want to opt for high-return investments, you can invest in equity mutual funds, hedge funds and many more.
Best Investment Plans For 2023
Here are the best investment plans to consider in 2023:
| Investment Plans | Plan Type | Policy Term |
| Aegon iInvest | ULIP | 10, 15, 20, 25 years |
| Aviva iGrowth | Unit-Linked life Insurance plan | 10, 15, or 20 years |
| Bajaj Future Gain | ULIP | 10 - 25 years |
| Bharti AXA eFuture Invest | ULIP | 10 years |
| Bajaj Allianz Fortune Gain | ULIP | 7 - 30 years |
| Bajaj Allianz Retire Rich | Unit-Linked pension plan | 7 - 30 years |
| Canara HSBC Smart Monthly Income Plan | ULIP | 5 - 30 years |
| Edelweiss Tokio Guaranteed Income Plan | ULIP | 5-25 years |
| Future Generali Easy Invest Online Plan | ULIP | 10-20 years |
| HDFC Life Click2invest | ULIP | 5 - 20 years |
Best Investment Plan For 1 Year
| Investment Plans For 1 Year | Ideal For |
| Arbitrage Funds | It is suitable for an individual looking for one or more than one year of investment |
| Recurring Deposits | Suitable for monthly investment |
| Fixed Deposits | Offers 6.5 returns |
| Post Office Deposits | You can invest for 1, 2, 3 or 5 years of tenure |
Best Investment Plan For 3 Years
| Investment Plan for 3 years | Ideal For |
| Savings Account | Suitable for individuals looking for 4%-7% returns |
| Liquid Fund | Suitable for individuals looking for 4%-7% interest |
| Fixed Maturity Plan | It comes with 3 years lock-in period |
Best Investment Plan For 5 Years
| Investment Plan for 5 years | Ideal For |
| Large Cap Mutual Fund | Within 3-5 years of tenure, you can earn 8%-13% returns |
| Post-office Time Deposit | With a 7% interest rate, it is suitable for individuals looking for high liquidity for 1-5 years |
| Liquid Funds | With a 7% interest rate suitable for individuals investing for 3-5 years |
What Are The Types Of Investments?
Before choosing the best investment plans in India, perform intensive research. Consider crucial factors like long-term sustainable returns, tax-saving benefits, and capital appreciation to assess the risk associated with the investment. Here are the different types of investment plans depending on the risk factor:
- Low-risk investment
This type of investment is suitable for a person with lower risk tolerance and who wants a portfolio with less or no volatility. Typically a low-risk investment has a low amount of upside and provides reliable and steady capital growth.Some prominent low-risk investment plans include Public Provident Fund (PPF), Fixed Deposit (FD), municipal bonds, money market funds, National Pension Scheme (NPS), Pradhan Mantri Vaya Vandana Yojana (PMVVY), etc.
- Medium risk investment
This is a type of investment that provide comparatively higher returns in comparison to low-risk investments. However, such kinds of investment have a certain level of risk.Some medium-risk investment options include balanced mutual funds, debt funds, corporate bonds, ETFs, and dividend-paying stocks.
- High-Risk Investment
These investment plans are appropriate for investors who have a high-risk appetite and focus on long-term growth.Some high-risk investments include equity mutual funds and Unit Linked Investment Plans (ULIP). It also includes other options like debt mutual funds, direct equity, etc.
Benefits Of Investment Plans
Here is the list of benefits of investment plans:
- With investment plans like ULIP, PPF, Equity Linked Savings Schemes (ELSS), etc., you can reap tax benefits, as per Section 80C and 10(10D) of the Income Tax Act.
- Help you accumulate a good amount of wealth or long-term returns over a period.
- Aid in providing a financial backup for your family.
How To Choose The Investment Plan?
When selecting the best investment plan in India, it is imperative to consider the following factors:
- Identify your financial requirement and goals.
- Examine the various costs associated with different investment plans. It can include recurring charges, one-time charges, etc.
- Evaluate your investment tenure to achieve each goal.
- Create a diversified portfolio. It means that instead of investing in a single investment plan, try to invest in many investment plans and insurance plans.
- Always review your investment plans regularly.
Things to check before choosing investment plans
Here is a list of things you must keep in mind when selecting an investment plan:
- Monetary goals
Always consider your goals and risk appetite while investing in an investment plan. For instance, if you have just started a career or a small family, you can choose an insurance cum investment plan such as ULIP.
- Major costs that could arise
These schemes are a smart way to get the protection you need while growing your money through the best savings schemes. For instance, if your child is in primary school, it is obvious that you will need to pay a significant amount for his/her education. In this regard, investing in a Child ULIP plan is a good idea.
- Future expenses vs savings
The amount of money you have saved will also determine the type of investment plan. For instance, if you have fewer expenses today, you can prepare for the major expenses that will come your way in a few years, such as children’s college education, marriage, etc.
- Current expenses vs savings
The amount you invest or save is more important to meet your financial needs. For instance, if you have fewer savings and more expenses, this signifies that you will be able to establish large short-term goals that coverage plans can meet.
When is the right time to start investing in an investment plan?
The answer to the question lies in your goals. Every individual has their own set of financial goals that they hope to accomplish in a given time. To achieve such financial objectives, looking out for investment plans that assist in multiplying your money over a specific tenure is essential. Therefore, with a tentative timeline and the right investment scheme, you can achieve these objectives without any hitch.
Documents required to purchase investment plans
You need to provide the following document while investing:
For salaried individuals
- Address Proof, including Voter ID, Aadhaar card, Passport and National Population Register containing details of name, address, Aadhaar, and other documents.
- Age proof and Identity proof, including PAN card, Aadhaar card, Municipal Birth Certificate, Voter ID, etc.
- Income tax return for the last two years.
- The last three months' bank statements showing salary credit
For self-employed individuals
- Address proof, including Voter ID, Aadhaar card, Passport and National Population Register containing details of name, address, Aadhaar, and other documents.
- Age proof and Identity proof, including PAN card, Aadhaar card, Municipal Birth Certificate, Voter ID, etc.
- Income proof- Form 26 AS, profit loss account and CA, latest two years of Income tax returns not filed in the same year along with income calculation, ITR of the latest three years not filed in the same year (If computation not available).
Conclusion
The above sections will assist you in selecting the best investment plans in India and making informed decisions. You can make an informed decision with the proper information about different investment plans.
Frequently Asked Questions
Which investments have the best returns?
Some of the best investment options for the highest returns include savings accounts, ELSS, fixed deposits, fixed maturity plans, etc.
Which is the best investment plan?
In India, there are numerous top plans for investments. It includes:
- Unit Linked Insurance Plans (ULIP)
- Public Provident Funds (PPF)
- Senior Citizen Savings Scheme (SCSS), etc.
What are the 10 best investments right now?
The best investments are stocks, mutual funds, FD, PPF, a senior citizen savings scheme, NPS, real estate, Real Estate Investment Trusts (REITs), crypto and gold bonds.
How much should a 30-year-old save?
There is no fixed percentage of how much a 30-year-old should save, as it depends on your expenses and monthly income. However, as per studies, by the time you reach 30 years of age, you must ideally save 50% to 80% of your current salary.
What are the best investment plans for the short term?
The best short-term investment plans include savings accounts, FD, treasury securities, Recurring Deposits (RDs), liquid mutual funds, Corporate Deposits (CD), National Savings Certificates (NSC), etc.
Which is the best investment plan in SBI?
The best investment plan in SBI is the SBI Life –Smart Elite Plan, which comes with a maturity period of 5 years and yields higher returns.However, you can choose other options on their websites for shorter investment tenure.
