Thanks for contacting us.
Will get in touch soon.
Best investment plans play an essential to make an informed decision when investing your hard-earned money in order to reach your short-term and long-term objectives. You can fulfil numerous financial goals with different types of investments, which can be confusing. In this article, we will help you to identify the best investment options in India for your needs and to gain financial security.
The following are some of the best investment options in India that you may want to consider adding to your financial portfolio:
Investment Options |
Period of Investment (Minimum) |
Who Can Invest? |
Risks |
Returns Offered |
Investment Amount Limit |
Tax Benefits |
5 years |
For investors who want both life insurance and wealth creation |
Medium-to-High |
10-24% p.a. (depends on your choice of plan) |
Rs. 1000—No Limit |
Available u/ IT Act, 1961, Section 80 C and Section 10 |
|
Capital Guarantee Plans |
5 years |
Suitable for investors who prefer stability of returns over high risk tolerance |
Low-to-Medium |
5 – 18% p.a. (depends on your choice of plan) |
Rs. 1000—No Limit |
Available u/ IT Act, 1961, Section 80 C and Section 10 |
5 years |
Suitable for long-term investors who are risk-averse |
Medium-to-High |
12 – 22% p.a. (depends on your choice of plan) |
Rs. 1000—No Limit |
Available u/ IT Act, 1961, Section 80 C and Section 10 |
|
5 years |
Those who wish to save for their children's future |
Medium-to-High |
14 – 22% p.a. (depends on your choice of plan) |
Rs. 1000—No Limit |
Available u/ IT Act, 1961, Section 80 C and Section 10 |
|
Senior Citizen Savings Scheme (SCSS) |
5 years (extendable by 3 years) |
Senior Citizens (over 60 years old) OR Superannuated/Voluntary Retired/Retired Defence Personnel (55-60 years old) |
Nil |
8.2% p.a. |
Rs. 1000-- Rs. 30 lakh** |
Available u/ Section 80 C of the IT Act, 1961 |
Up to the age of 60-70 (extendable by 5 years) |
Residents/NRIs/OCIs/ PIOs between 18-70 years of age* |
Low-to-High |
Market-linked (9-15% p.a.) |
Tier I: Rs. 500 – No Limit (Rs. 1000 per year) Tier II: Rs. 250 – No Limit |
IT Act, 1961, Section 80 CCD(1), (2), and (1)B. |
|
Post Office Monthly Income Scheme (POMIS) |
5 years |
Indian Citizen |
Nil-to-Low |
7.4% p.a. |
Single Life: Rs. 1000-- Rs. 9 lakh Joint Life: Rs. 1000—Rs. 15 lakh*** |
Nil |
15-year lock-in period (extendable by 5 years) |
Indian Citizens with long-term investment goals |
Nil |
7.1% p.a. |
Rs. 500-- Rs 1.5 lakh yearly |
Available u/ IT Act, 1961, Section 80 C and Section 10 |
|
RBI Saving Bonds |
6 years |
Citizens of India: Individuals, HUFs, Charitable Institutions, and Universities. Not available to NRIs |
Nil |
8.00% p.a. |
Rs. 1000—No Limit |
Exempt from Wealth Tax under Wealth Tax, 1957, income earned is taxable under IT Act, 1961 |
7 days to 10 years |
Investors who do not want to take the risk of market fluctuations |
Nil |
4-9% p.a. |
Rs. 500-- Rs. 5 Crore |
Deductions available u/ Section 80C only for Tax-Saver FDs |
|
Initial Public Offerings (IPO) |
As per your investment Profile |
The investor should have a Demat-cum-trading account |
Moderate-to-High |
8-15% (depending on performance of IPO) |
Decided by the investor |
Taxable for LTCG and STCG gains |
Stock Market Trading |
As per your investment Profile |
An investor who knows how to balance risk and return |
Very high |
7- 20% (depending on performance of the assets) |
Decided by the investor |
Taxable for LTCG and STCG gains |
For ELSS Scheme: Minimum 3 years |
Medium-to-high-risk investors |
Medium-to-High |
8-20% p.a. |
Rs. 500—No Limit |
ELSS scheme is exempt from tax under Section 80C of the Income Tax Act. |
|
Gold |
As per your investment Profile |
Everyone |
Low-to-Medium |
8-18% |
Decided by the investor |
Taxable for LTCG and STCG gains |
Real Estate |
As per your investment Profile |
Everyone |
Medium |
6-12% p.a. |
Decided by the investor |
Taxable for LTCG and STCG gains |
Real Estate Investment Trusts (REITs) |
As per your investment Profile |
Everyone |
Medium-to-High |
10-15% p.a. |
For REITs: Rs. 10,000 |
Taxable as per rules specified for REITs |
Crypto currencies |
NA |
Everyone |
An investor who knows how to balance risk and return |
High risk & High returns |
NA |
Profits earned are taxable at a rate of 30% p.a. |
*Government of India (GoI) increased entry age for NPS Scheme to 70 years in 2021. **The Government of India increased the SCSS investment limit to Rs. 30 lakh from Rs. 15 lakh in Budget 2023. ***POMIS Scheme investment limits were raised in Union Budget 2023 from Rs. 4.5 lakh to Rs. 9 lakh in Single Life Accounts and from Rs. 9 lakh to Rs. 15 lakh in Joint Life Accounts. |
Below are the key features and benefits of the best investment options with high returns in India:
A ULIP stands for a unit-linked insurance plan. Investing in these offers you the benefits of both life insurance and safe investment options.
The following are the features of a Unit Linked Insurance Plan (ULIP):
- Equity funds
- Index funds
- Hybrid funds
- Debt funds
New Fund Offerings (NFOs)
- Monthly
- Quarterly
- Half-yearly
- Annually
In a Capital Guarantee Plan, the investor gets a guarantee that his or her initial investment will be returned to him or her, regardless of the market conditions.
The following are the features ofa Capital Guarantee Plan:
Pension plans are an insurance-based investment approach that provides both retirement savings and life insurance coverage. They are an ideal way to secure a steady income after retirement when you are no longer employed.
The following are the features ofa Pension Plan:
Child plans are a great way to ensure your child's financial security by combining life insurance and investment. When the plan matures, your child will receive a lump sum payout that can be used for financing their education, marriage, or business venture. In the event of your premature death, your child will also receive a death benefit.
The following are the features of a Child Plan:
The Senior Citizens’ Saving Scheme is a secure, tax-advantaged investment option for Indian citizens aged 60 or over. It is an excellent way for seniors to save for their future, providing them with a steady source of income.
The following are the features of a Senior Citizens’ Savings Scheme:
NPS is a government-sponsored investment plan that offers assured pension benefits. It invests your money in various assets, including bonds, government securities, equities, and other instruments linked to the market, as per your preference.
The following are the features of the National Pension Scheme (NPS):
- The Tier I account is a mandatory long-term savings account that cannot be withdrawn prematurely.
- The Tier II account an optional account with more withdrawal flexibility
- The Auto Choice Funds allocate assets according to your age automatically.
- The Active Choice Funds customizes asset allocation across equity, debt, and government bonds.
The Post Office Monthly Income Scheme, sponsored by the government, is one of the best investment options in India that guarantees a consistent monthly income. It is a popular choice among retirees and other investors looking for a reliable income source.
The following are the features of a Post Office Monthly Income Scheme (PO-MIS):
In India, the Public Provident Fund (PPF) is the best long-term investment option. PPF provides guaranteed returns, which are declared by the Government of India every quarter.
The following are the features of Public Provident Fund (PPF):
All Indian citizens, except Non-Resident Indians (NRIs), can invest in RBI bonds which offer high returns with a safe investment option. The profits gained are transferred to the investor's Bond Ledger Account (BLA) in Demat form.
The following are the features of RBI taxable bonds:
Bank Fixed Deposits are a reliable and secure form of investment that guarantees a fixed rate of return for a given period. FDs offer some of the highest rates of return in India.
The following are the features of Bank Fixed Deposits (FDs):
An Initial Public Offering (IPO) is when a private company sells shares to the public for the first time, thus transitioning from private to public ownership. Through IPOs, firms gain access to capital that can be used for business development, enlargement, or debt reduction.
The following are the features of an Initial Public Offering (IPO):
Investing in the stock market involves buying and selling shares in publicly traded companies or commodities. These companies are listed on secondary markets, such as the NSE, BSE, and NASDAQ. Stock market trading is done through these exchanges and the prices of the shares are determined by the forces of supply and demand.
The following are the features of Stock Market Trading:
Mutual Funds offer investors a lucrative opportunity to invest in a diversified portfolio of market-linked instruments like equity, debt, and money market funds. These funds are managed by experienced fund managers who make decisions on your behalf. Such investments are beneficial as they have the potential to provide high returns.
The following are the features of Mutual Funds:
India has a deep-rooted cultural connection to gold, viewing it as a symbol of opulence, success, and fortune. This cultural significance makes gold and gold-related assets a desirable investment for many Indian citizens.
The following are the features of Gold:
- Gold funds
- Physical gold
- Gold bonds
- Gold ETFs
Real Estate Investment Trusts, or REITs, are an attractive investment opportunity in India that offer potential for high returns. This allows investors to gain indirect exposure to a range of real estate assets. REITs may be easily bought and sold on stock exchanges, making them a highly liquid asset.
The following are the features of Real Estate Investment Trusts (REITs):
Real estate encompasses holdings such as land, residential dwellings, and commercial structures. Over time, this type of investment can generally gain value, offering the potential for a lucrative return on investment in India.
The following are the features of Real Estate:
- Deduction of home loan interest under Section 24(b)
- Deductions for principal repayment of a mortgage under Section 80C
- Section 54: Capital gains tax exemptions for residential property sales
Cryptocurrency is a digital or virtual form of currency that is stored utilizing a ledger or blockchain technology. It is actively traded across the world now. Cryptocurrencies have become one of the most popular investment options in the present day since they are decentralized, meaning the transaction cannot be managed by any government, financial institution, or external entity. Even though crypto-trading is not illegal, the regulatory environment is still vague in India.
The following are the features of Cryptocurrency investments:
Investing in corporate bonds in India offers people the chance to loan money to businesses in return for periodic interest payments. At the end of the bond's maturity, the original amount invested is returned.
The following are the features of Corporate Bonds:
Government bonds, or sovereign bonds, are debt instruments issued by the Indian government to fund public expenditure and regulate economic deficits. They are generally seen as reliable and optimum investment choices with substantial returns in India due to their offering of dependability along with regular income.
The following are the features of Government Bonds:
Peer-to-peer lending is a form of debt financing that connects individual lenders and borrowers through online platforms. P2P lending platforms provide a space for investors to review borrower profiles, evaluate creditworthiness, and choose loans according to their investment goals.
The following are the features of Peer-to-Peer Lending:
To sum up, it is important to educate yourself on various investment options available before deciding to invest. It is also important to distinguish between your savings and investments, as they both serve different purposes. Ultimately, seeking the advice of a professional and understanding your risk tolerance and goals can help you make an informed decision.
Ans. To ensure you have a strong and diverse portfolio, it is important to first map out your financial goals and identify both long-term and short-term investment options that are suited to your individual profile.
Ans. A life insurance plan, a PPF, a fixed deposit, a ULIP, and an ELSS are some of the best investment options in India that will provide tax benefits as well.
Ans. There is no single "one size fits all" investment option for everyone. It varies based on one's financial situation, investment objectives and risk tolerance. There are multiple short and long-term investment options available in India that can meet the needs of all kinds of investors. Short-term investments can be used to fund short-term goals, while long-term investments are best for long-term goals like retirement.
Ans. Above, we have outlined the different investment options available in India. It is essential to have a goal in mind when deciding on where to invest. A mix of long-term and short-term investments can be a beneficial way to diversify your portfolio.
Ans. Risk tolerance is about how much risk you are comfortable with taking. Understanding it is essential when selecting investment options, as it can help you avoid any potential financial burden resulting from your investment decisions.
Ans. Diversifying your investments means allocating your funds into different asset classes. This helps minimize any losses that may occur if any of those assets decline in value. There are various investment options available, such as stocks, bonds, and mutual funds, which you can choose based on your objectives and risk tolerance.
Ans. Deciding on whether to invest in the long run or the short run depends on how much risk you are willing to take. Long-term investments promise reliable profits while decreasing risk. It is therefore important to understand your investment choices and set realistic expectations.
ARN - ED/12/23/7200
We help you to make informed insurance decisions for a lifetime.