Best Investment Plans to Invest in India 2024

Investors look for fast gratification even though patience and discipline can lead to superior results. We want to accomplish our life goals as quickly as we can. The same is true with investments. In the shortest possible time, we want to generate the highest return. We constantly search for the best investment strategies that would allow us to double or triple our money in a minimal investment period.

There is a never-ending list of best investment plans to cater to diverse investor needs. Figuring out the best fit can be challenging. They could also take longer than you anticipate to get the intended results. So, if you are looking forward to the best investment plans in India to grow your wealth, we have aligned the foremost investment plans in this blog. Choose the one that satisfactorily fits your investment horizon and pile wads of money to secure your future financially.

What is an Investment Plan?

The investment plan refers to investment products that provide investors with an opportunity to stimulate their corpus to attain their financial objectives. Investors can turn these objectives into reality by investing cautiously in financial and investment products that would surely yield higher returns. Investors are always on the lookout to find the best investment plan available in the market so that they can accumulate wealth over a period of time.

Financial institutions provide investors with a diverse range of investment products with the ability to cope with their objectives. However, you must note that these products vary regarding their yields and risks and the onus is on the investor on where they are inclined to park their savings. Investors can select the best investment plan by clearly identifying their financial goals and objectives and then taking towards the investment products that complement them.

The investor can choose from a variety of investment products such as the Public Provident Fund, Equities, Mutual Funds, Monthly Income Plan, Fixed deposits, and many more. Additionally, you can use the method to segment their investment goals into long-term and short-term and immediate goals. It helps to diversify their investment portfolio and realise the potential of their investment.

Best Investment Plans in India 2024

Investors are always searching for the best investment plans available to realise their financial goals. Here is the list of the best investment plans in India which possess the potential for the investor to obtain higher returns.

1. Equities

It is a known fact the equities market is one of the most popular avenues for investors who want to generate substantial returns on their investments. The equity market provides a platform for investors with a grasp on the volatility of the share market to generate wealth and stimulate their corpus. The investors park their savings in the equity market for both short and long terms. However, investors with long-term planning usually book substantial profits on the investments. The best investment plan in India will be incomplete without some investments parked in equities.

2. Mutual Funds (Equities)

Mutual funds are another investment product available to investors who want to profit from the volatility of the share market. It is a safer option when compared to directly investing in the share market. Professionals and experts with rich market experience manage the amount invested in the equities. Unlike a direct investor, the portfolio’s structure is at the fund manager’s discretion. The investor can select from various mutual funds available in the market and compare their returns to select the one that complements their investment goals.

3. Real Estate

An investment in real estate has been featured in the best investment plans in India. The research data reveals that post-covid-19, the real estate sector is about to witness another boom as the housing requirements for the humongous population of the country are always high. However, note that an investment in the real estate sector is always long-term. As the investor, a substantial profit only after the real estate has appreciated consistently for a longer duration.

4. Public Provident Fund

The Public Provident Fund is another investment tool that is widely popular among investors as they produce assured returns on investments. This investment product provides an avenue to investors to park their savings in a safe and secure investment product immune to market volatility. The investment in the Provident fund allows the investor to stimulate a substantial corpus at the time of their retirement.

5. Initial Public Offerings (IPOs)

IPOs are another investment product that investors can utilise to stimulate their funds. These initial public offerings are low-risk investment products and allow you to yield substantial returns for the applicant. The IPOs could prove to be extremely lucrative if the value of the share acquired increases substantially over the years.

6. Unit Linked Insurance Plan (ULIPs)

The ULIPs are one of the market’s most renowned and availed investment instruments. This investment product simultaneously provides the investor with a joint benefit of investment and insurance. The deposited amount is allocated in a mix of equities and bonds. However, the other part of the investment is allocated toward an insurance policy. This investment instrument is also safe and the investor can avail of assured returns.

7. Bank Fixed Deposits

Many financial institutions in India offer Fixed deposits to investors where they can park their savings. These institutions offer attractive interest rates to investors and flexible tenure to make the most of these schemes. The schemes offer assured returns to investors and are very popular among investors.

8. Bonds

Bonds are also a popular investment instrument among investors. When investors allocate their funds to a bond, they indirectly lend the money to the bond issuer. The issuer can be a municipality, government, or corporation. The bonds are a safe investment instrument as the returns on these bonds are assured.

9. National Pension Scheme

The National pension scheme is regulated by the government of India, where the investment comprises long-term products such as bonds and equities. The amount to be allocated in the different asset classes is at the discretion of the investor.

10. Gold

The history of utilising gold as an investment product has been rich. Some individuals and even countries maintain gold reserves as they are immune to inflation and unforeseen market volatility. Currently, an investor can invest in gold through various ETFs and mutual funds from the comfort of their homes.

11. Senior Citizen Savings Scheme

The senior citizen saving scheme has been featured in the best investment plan in India. This scheme provides a platform for retirees to park their savings in a secure avenue where the returns are assured. The scheme’s tenure is five years and the provision to avail of an extension is also present.

12. Sukanya Samridhi Yojana

The government designed this investment scheme to safeguard the future of girl children in India. This investment scheme has been regarded as one of the best investment plans in India for the girl child. This investment scheme owes its popularity to the lucrative interest rates offered that are compounded annually. The interest, principal, and maturity values are also exempted from tax as they fall under the EEE Category under the Income Tax Act.

13. Mutual Funds (Debt)

The debt mutual fund is another investment product that can generate substantial returns for the investor. The investment in a debt mutual fund is a less risky option when compared to mutual fund equities. The investment funds are generally allocated in fixed interest products such as corporate bonds, commercial paper, government securities, and other money market tools.

14. Post-Office Saving Scheme

The post office savings scheme offers an investment avenue for the citizens to park their payments in the post office saving account. The account operates like any other savings A/C where the investors can obtain assured returns on their investments.

15. Pradhan Mantri Vaya Vandan Yojana

The Pradhan Mantri Vaya Vandan Yojana has been termed one of the best investment plans in India for senior citizens. The scheme provides senior citizens with an attractive interest rate of 7.4% per annum. The scheme allows the investors to obtain their interest income on a monthly, quarterly, half-yearly, and annual basis.

Factors to Consider Before Selecting the Best Investment Plan

The investor should consider the following factors before selecting an Investment Plan:

• Investors should meticulously research the investment plan they want to invest in. They should factor in the risk-to-return ratio before they commence their investment journey.
• The investor should also be cautious before investing in a scheme that offers substantial returns for a short period of time. The authenticity of the investment scheme shall be assessed.
• In case the investor has allocated their funds in a scheme that is subject to market volatility. They should be consistent in evaluating the valuation of their investments.
• Investors should also examine the taxes levied on their respective investments so that they can compute the returns on the investment more accurately.
• The investor should also factor in the liquidity of the investment instrument so that they can assess the allocated amount for emergency purposes. Many investment instruments, except for equities, might levy a penalty on premature withdrawal.

Short-Term Investment Plans

As the name suggests, a short-term investment plan allows the investor to generate profit in a short period. The plans offer high liquidity to the investors as they can book profits in a shorter time. The returns from a short-term investment plan are less substantial than from a long-term investment plan. However, they can fulfil any short-term objectives that one might have in case they want to allocate their corpus for a shorter time frame. The following are the best investment plans in India that are short-term.

Recurring Deposits

The recurring deposits allow the investor to park their investments for a tenure of fewer than six months. That can be re-deposited in the multiples of three months up to ten years. The interest rate offered in recurring deposits is lucrative and the liquidity of the investment is also high.

Money Market Account

The money market account is another short-term investment plan offering high liquidity to investors. Under this investment instrument, investors can earn interest on their deposits parked at various banks and credit unions.

Company Deposits

Company deposits are an investment option that provides higher interest rates than bank fixed deposits. Many NBFCs in India offer company deposits to investors at a fixed rate of interest over a predetermined period.

Debt Instruments

The debt instruments refer to the bonds issued by the government and corporations to raise capital. The investor can invest in these instruments as they ensure assured returns on the investments.

Benefits of Investment Plans

The investor stands to realise the following benefits if they select the best investment plan that complements their investment goals.

Investment Corpus

Investors can stimulate their savings by investing in an investment plan that would yield attractive returns. Investors can make investments in plans that provide them with assured returns. Such investments allow the investor to maintain a substantial corpus at the time of their retirement to diminish external factors and unforeseen circumstances.

Tax Benefits

The investor can avail of various tax exemptions on returns on programs such as the Public provident fund, ELSS, Sukanya Samridhi Yojana, etc., under section 80C of the Income Tax Act.

Fund Acquisition of Assets

Investors can use a solid investment plan to increase the valuation of the investments. In addition, you can use the substantial funds to obtain assets such as properties, children’s education, emergency purposes, marriage plans, etc.

Types of Investment Plans

The investor can design the best investment plan based on the risk involved. There is a diverse assortment of investment products available in the market that an investor can select following their financial goals.

High-Risk Investment Plan

As the name suggests, a high-risk investment plan is generally selected by individuals who want to generate substantial profits on their investment. The investor who selects such investment plans does so with the motive of booking profits from the market fluctuations. Investors with a High-risk investment plan generally invest in equities and equities-related products.

Medium Risk Investment Plan

A medium-risk investment plan is very popular among investors. The investor invests in a mix of high-risk and low-risk investment products. The diversified portfolio helps the investor take risks and simultaneously ensure assured returns. An investor who has drafted a medium-risk investment plan invests in investment products such as monthly income plans, Arbitrage funds, and hybrid debt-oriented mutual funds.

Low-Risk Investment Plan

A low-risk investment plan is suitable for investors looking to park their funds in a secured avenue. The returns on such investment products are not so substantial compared to high-risk investments. But, the investor can earn an attractive return by investing for a longer tenure. The investors generally invest in schemes like Public Provident Fund, Bank fixed deposits, National pension schemes, and other such products.

When Should One Commence Their Investment Journey?

Financial advisors across the world advise their clients to commence their investment plan early for the following reasons:

• Investors should commence their investment journey in diverse schemes to avail of substantial long-term returns from them. Most investment products showcase a considerable increase in value only when the funds are allocated for a longer tenure.
• The investor who begins to invest their money in investment products also subconsciously inculcates a habit of saving. A certain sum of their income is already used as an investment.
• The major gains experienced in investment are often the result of the compound effect. An investor who has commenced their investment journey early stands to book more profits on the same scheme than the investor who has begun investing later.
• An investor who starts investing early has the flexibility to take more risks on their investments. It is true in equity market investments as the investor is in a position to leverage from the market volatility.

Objectives of Investment Plans

Investors around the country are always looking to find the best investment plan in India to realise the following objectives:

• Some investors seek the safety a few schemes provide to safely park their investments or savings for a specified time frame.
• The investor also aims to increase their income by investing in investment avenues where the returns are assured.
• Some investors who invest in the best investment plan in India get lucrative returns from the investment along with tax exemption.

How to Select the Best Investment Plan?

The investors in India have the leverage to compare, compute and invest in various investment products where they can conveniently attain their financial goals. The best financial plan aims to stimulate the corpus by allocating their funds diligently to meticulously researched money market products. The first step an investor should take before they begin to invest is a self-assessment of their very own financial needs. They should also access the following factors:

• The investor should identify the investment plans from the diverse range of products available in the market that complements their investment objectives.
• The investor should then diligently strategise and choose the investment plan that aligns with their budgetary goals. They should also assess the risk factor. Investors should steer away from making riskier investments early in their investment journey.
• The investor should also examine the tenure of the investment. They should assess if the investment products offer high liquidity to cope with unexpected financial obligations.
• They should also refer to the hidden charges they might have to bear while investing in the product. It allows them to compare before allocating their funds to a particular scheme.
• The investor should maintain a diversified portfolio as the amount invested is presented in various sets of avenues. In such case scenarios, the associated risk is minimal. As the investor can recover the losses from other investment products.

What are the Documents Required to Buy an Investment Plan

The investor is required to maintain and produce the following documents before investing in an investment plan.

Income Proof

The investor can submit the following documents as proof of income:

• Salary Slips
• Income tax returns
• Bank statements

Address Proof

The investor can submit the following documents as proof of address:

• Driving Licence
• Aadhaar Card
• Voter ID Card
• Passport

ID Proof

The investor can submit the following documents as Identification proof:

• Pan Card
• Aadhaar Card
• Voter ID Card

Age Proof

You can procure the following documents as proof of Age

• Driving Licence
• Voter ID card
• Passport

Best Investment Plan for 1 Year

The investor who plans to invest in a scheme for a year should invest in the following investment products.

Best Investment Plan for 3 Year

The investor who plans to invest in a short-term scheme, with a tenure of around three years, should invest in the following investment products.

Saving Account: The investment product offers high liquidity to the investor. The returns on the investment generally range from 4%- 7% per annum.

Liquid Funds: It is a suitable investment product for the investor who wants to invest for a shorter period and avail of returns that ranges from 4%-7% per annum.

Fixed Maturity Plan: The features of the fixed maturity plan mirrors that of a fixed deposit. The lock-in period for this investment instrument is three years.

Best Investment Plan for 5 Year

Investors who plan to park their investment for five years can choose to invest in the following investment products. The return on investment on such an investment product is more lucrative when compared to a one-year or three-year plan.

Best Investment Plan for 10 Year

The investor can avail of the following investment instrument if they have a long-term horizon of 10 years in mind for their respective investment.

Real Estate: Can provide a lucrative return to their investors. The money invested in the financial product can appreciate through the increased real estate market valuation.

Equities: Equities also possess the potential to provide substantial returns to their investors if they’re willing to park their investments for a long period of time.

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