In Unit Linked policies, the investment risk in the investment portfolio is borne by the policyholder.
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14 Best Investment Plans In India
30th October 2018
Everyone is on a constant lookout for better investment options and financial returns. However, making the right move is a matter of clear planning and long-term thinking. Investments are important because in today’s world, just earning money is not enough. You work hard for the money you earn. But that may not be adequate for you to lead a comfortable lifestyle or fulfill your dreams and goals. To do that, you need to make your money work hard for you as well. This is why you invest. Money lying idle in your bank account is an opportunity lost. You should invest that money smartly to get good returns out of it.
What is an Investment Plan?
Investment Plans are financial products that provide the opportunity to create wealth for future. Investment plans offer to help individuals in disciplined and periodic investment into different funds overtime so as to achieve their future financial goals.
How do i go for an investment plan?
The first step in planning your investments is to figure out the right investment that fits your profile and needs. Investment planning requires choosing investments carefully after doing adequate research and not falling for quick-buck schemes that promise high returns in a short time. You must review your stock and mutual fund investments regularly and keep an eye on the tax implications on returns and capital gains that you make form specific investments. In India, there are a lot of investment options that can work for you. Such 14 Best Investment Plans are listed below:
14 Investment Plans for You:
Public Provident Fund (PPF):
Traditionally considered to be among the best and safest investment modes in India, PPF is one of the most popular small savings scheme. PPF account holders can invest up to Rs 1.5 lakh in a financial year while the minimum deposit required is Rs 500. Deposits can be made in lump-sum or in 12 installments. PPF deposits qualify for deduction from income under Section 80C of the Income Tax Act. In terms of income tax implications, PPF accounts also qualify for EEE (exempt, exempt, exempt) tax category, which means an investor is not liable to pay tax at all three levels - investment, earning and withdrawal.
Mutual fund dealers allow you to compare the funds based on different metrics, such as level of risk, return, and price. Also, as the information is easily accessible, the investor will be able to make wise decisions. Besides, Mutual Funds offer benefits in liquidity and professional management.
Direct plans help you to save money on commissions and marketing-related expenses. This small saving is invested in the scheme and it may help you to make extra returns over a long period.
Real Estate Investment
Investment in real estate is one of the most lucrative and beneficial in India, as the potential for development is huge and the market is growing.
Traditionally considered to be among the best options, gold investment schemes offer you the chance to convert a blocked asset into high-value liquidity.
Post Office Saving Scheme
Ideal for retired people who need regular income, it comes with the option of account conversion.
Company Fixed Deposits (FDs)
Company FDs offer higher interest rates than bank FDs and are ideal for long-term investments.
Initial Public Offerings (IPOs)
IPOs, launched by reputed companies is an ideal long term and low-risk investment option.
ULIPs (Unit Linked Insurance Plans)
ULIPs offer a range of benefits and provide the joint benefits of investment and insurance. Known for tax benefits, ULIPs are among the top investment mediums in India.
Bonds are often liquid – it is often fairly easy for an institution to sell a large quantity of bonds without affecting the price much.
Bank fixed deposits are extremely popular in India. Coming with cumulative/non-cumulative options, bank FDs offer fixed returns over the investment tenure and the returns are payable on a monthly, annual or bi-annual basis, depending on the bank policy.
Senior Citizen Savings Scheme (SCSS)
SCSS's are tax free and risk-free investment options for senior citizens above the age of 60. They offer big interest rates and are quite lucrative.
RBI taxable bonds
These RBI bonds have tenure of 7 years and are issued in demat format (they are credited to BLA or Bond Ledger Account of the holder).
National Pension Scheme
It is a government-organized pension product for the employees of all the sectors in India and offers plans based on equity debt, corporate debt and government bond. In NPS a minimum contribution of Rs 6,000 a year is required while there is no upper cap.
HDFC Life offers saving and investment plans for securing your finances and helping you build your financial base. For details, click on the mentioned link: https://www.hdfclife.com/savings-investment-plans
Frequently asked questions (FAQ)
✅ What is the difference between a savings plan and an investment plan?
The terms ‘saving’ and ‘investing’ are often used interchangeably, but this isn’t always accurate. Savings and investments are two different types of financial tools that are used to fulfill different needs.
- Savings: This refers to setting some money aside to be used in the future. The money is usually kept in a savings account and can easily be accessed, especially in emergency situations.
- Investment: On the other hand, investment refers to buying assets like bonds, stocks, real estate or mutual funds to help your money grow.
While a savings plan enables you to build up a corpus over time, an investment plan provides you with an avenue where you can help your money grow.
✅ Why Should I Opt for an Investment Plan?
Each and every one of us has some goals that we would like to achieve. A good investment plan is absolutely crucial in order for us to realize these goals. In today’s atmosphere, simply earning and saving is not enough. In order to be able to afford a home or a financially-secure retirement, it’s vital that you find investment avenues that will allow you to grow your money over time. Remember, it’s important to have a goal in mind before you start investing – this will enable you to streamline the process.
✅ Should I Opt for a Short-term or Long-term Investment Plan?
The answer to this will depend largely on your financial goals. However, it’s always a good idea to have a good mix of both short- and long-term investments in your portfolio. Short-term investment plans will enable you to achieve your short-term financial goals, such as building up enough money to purchase a car, while a long-term investment plan could enable you to achieve your long-term goals like building up enough money to purchase a house. On the whole, long-term investment plans are generally preferred since safer investment tools can be used to enjoy better returns in the long run.
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