10 Best Investment Plans in India Which can Help you Save Money

It is essential to invest your money smartly to get a good return out of it. Read on to know which are the best investment plans in India.

What is an Investment Plan?

An investment plan is a set of financial goals and a plan to achieve them using different legal financial avenues available. They help individuals make disciplined and periodic inveitstments into different funds to achieve their financial purposes over time.

Investors can maximise their returns by structuring their investments according to the returns they expert, risk tolerance, and their budget.

It can be said that a retirement plan is a financial product that allows you to create wealth for your future.

How to Get an Investment Plan?

• The first step to efficient investment planning is to identify your important financial goals and estimate the funds required to meet them.
• Next, look for investments that fit your risk profile and financial needs.
• Select your investments carefully after adequate research. Do not get enticed by schemes that promise quick returns which appear to be impractical.
• Keep a track of your investments regularly. is crucial to making sure that you are
• Pay adequate attention to the tax implications on your investments.

Top 10 Investment Plans

As far as investment options go, many of them can work for you. Here is a list of the ten best investment plans in India you should consider:

1. Public Provident Fund (PPF)

PPF is a popular scheme in India. A minimum deposit of ₹500 is required for PPF account holders, and the maximum investment is limited to ₹1.5 lakh per year.

Public Provident Fund (PPF) features include:

• A bank or post office branch near you can help you open an account.
• From the sixth policy year onwards, you can withdraw funds partially.
• A loan facility is available from the third investment year to the sixth investment year.
• There is no tax implication on the investment, earning, and withdrawal for a PPF account.

2. Unit Linked Insurance Plan (ULIP)

One of the best investment options in India is a ULIP. Consumers can take advantage of the dual benefits of investment and insurance by investing in ULIPs. With life insurance, you can secure your family’s financial future, and the investment part of ULIP helps you build wealth.

Features of ULIP are:

• ULIP has a wide range of investment options.
• Fund switch to match investment needs.
• Part withdrawal after the initial lock-in period
• Tax exemptions on ULIP premiums.

3. Senior Citizen Savings Scheme (SCSS)

Indian senior citizens (over 60) can invest in the Senior Citizens' Saving Scheme (SCSS) without taking risks. As it offers a regular income, it is an excellent investment for older people.

The following are some of the features of Senior Citizen Savings Schemes:

• There is a nomination facility available.
• It is possible to withdraw funds prematurely.
• Tenure flexibility
• It is possible to open both individual and joint accounts.

4. National Pension Scheme (NPS)

The NPS is a government-backed investment option, which offers market-linked returns to investors. In addition to bonds, government securities, and equity, the NPS fund may also invest in other investment options according to the investors' preferences.

NPS features include:

• Quick online account opening
• Flexible investment options
• Charges for administration and fund management are low
• Power of compounding comes into practice as the funds are locked-in till the investor turns 60

5. Bank FDs

Bank Fixed Deposits provide fixed returns over a specific investment period. Due to its consistent returns, it is a safe investment option.

Bank Fixed Deposits have the following features:

• The process of opening, maintaining, and renewing a policy online.
• Provides overdrafts against FDs.
• Guaranteed returns
• Options for terms ranging from 7 days to 10 years.
• Added returns of 0.25-0.75% per year to senior citizens.

6. Post Office Monthly Income Scheme (POMIS)

The Post Office Monthly Income Scheme is an investment scheme available at the post offices. The India Postal Department regulates this scheme.

POMIS features include:

• Individual and joint life accounts with two or three people are available.
• Accounts can be opened by minors (over ten years old).
• A guardian's account has separate investment limits.
• Interest is payable at a rate of 7.4% and is disbursed monthly.
• The interest amount does not attract a TDS, nor does it have any tax benefits.

7. Direct Equity

Direct equity investments involve purchasing market-linked stocks/units of a publicly traded company. Even though equity funds carry high risks, they offer the potential for higher returns than many other investment options. The high returns of direct equity make it an excellent long-term investment.

Direct equity features include:

• Direct equity funds require investors to have a Demat account to invest.
• Direct equity investments in growing companies have a greater long-term reward.
• Pick the right stock and determine when to enter and exit the market.
• Make a risk-return analysis.

8. Mutual Fund

A mutual fund is an investment pool where the funds of multiple investors are collected and invested by a fund manager to achieve a common goal. Equity, debt, stocks, and money market funds are some instruments it invests in. Market performance determines the fund's returns.

Features of Mutual Funds:

• Offers potential for high returns over the long term.
• Allows you to hold a diversified investment portfolio.
• Professional fund managers look after each mutual fund portfolio.
• Equity Linked Savings Scheme (ELSS) mutual funds also offer tax exemption benefits u/ Section 80C of the IT Act, 1961.

9. Gold ETF

Gold exchange-traded funds are passive investments that track the physical gold prices domestically. It aims to trade gold bullion stocks/units in paper form or by Demat changes.

Features of Gold ETF are:

• These are units representing physical gold in a dematerialised form.
• 1 Gold ETF Unit = 1 gram of physical gold of very high priority.
• They are traded on the NSE and BSE like regular stocks.
• Investors do not receive physical gold on GLD ETF redemption, instead, they receive cash of the equivalent value.

10. Real Estate Investment

Real estate is among India's fastest-growing sectors. Real estate investment means investing in an immovable but transferable property with the primary objective of generating income.

Real estate investment features include:

• Real estate investments have a high tangible asset value.
• Low volatility and high return potential.
• Investing in real estate is a safe, long-term future investment plan.
• Usually requires an investment of a significant amount.

Conclusion

We have discussed how to save money using investment plans in India. As a smart investor, you must thoroughly understand the different investment options available in the market before you start investing in the best investment plan.

You can consult an investment professional and choose the best investment option for you based on your risk appetite and financial goals.