Investment Plans

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 Funds

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. ELSS is a type of mutual fund that can help you have tax under 80C also you should consider mutual fund fees.

Direct Equity

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.

Gold investment

Gold investments help you diversify your portfolio and hedge against market volatility. The investment can beat high inflation rates, making it a safe option. Gold investments don’t require market knowledge, making it easy for everybody to safeguard their money for the future. Crucially, gold investments have high liquidity, proving useful during financial emergencies.

Post Office Saving Scheme

The Post Office Savings Scheme is a government-backed investment scheme. It helps individuals grow a corpus for the future with a range of savings and deposit options that have attractive interest rates. These investments provide guaranteed returns, making them a low-risk investment option.

Company Fixed Deposits (FDs)

Non-Banking Financial Companies and other RBI-licensed financial institutions offer company fixed deposits. Investors benefit from a fixed interest rate through the tenure, providing stable returns.

Initial Public Offerings (IPOs)

IPOs allow the sale of securities to the public through the stock market. The investments offer high growth opportunities and the potential for significant returns in the long run. However, they are high-risk options and could deplete your resources if the company does not perform.

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

Bonds are low-risk, fixed-income securities that provide investors with a steady income stream. They help investors diversify their portfolios and balance high-risk investments. Many government bonds offer inflation-adjusted returns, making them a stable investment for the future.

Bank FD

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)

The SCSS is a government-backed scheme specifically for investors over 60. It provides a steady income stream and tax benefits, making it a low-risk option. Generally, the SCSS offers a higher interest rate than other options, making it a good option for senior investors.

RBI taxable bonds

The Government of India periodically issues RBI Taxable Bonds to raise funds for various projects. These bonds are safe and secure and offer assured returns over the tenure. Investors can preserve their capital while earning returns.

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.

Life Insurance

Life insurance policies offer life insurance coverage while providing a savings or investment component. Policies such as Savings Plans or Retirement Plans offer avenues to grow your funds for the future while protecting your family in the present. The beneficiary receives the sum assured payout if anything happens to the investor during the policy term. On survival, the policyholder earns the maturity benefits.

National Savings Certificate (NSC)

National Savings Certificate (NSC) is a savings option by government which is backed by fixed-income investment scheme offered by India Post. You can get guaranteed returns from this financial tool.

Equity-linked savings scheme (ELSS)

These are mutual funds and they invest in the equity shares of different companies. If you invest in an ELSS tax saver fund, you can enjoy tax benefits under Section 80C of the Income Tax Act, 1961.

Sovereign Gold Bonds (SGBs)

Sovereign Gold Bonds (SGBs) are government-backed securities issued by RBI. They are denominated in grams of gold. They offer a secure and affordable way to invest in gold without the need for physical storage. With fixed interest rates and a maturity period of 8 years, SGBs provide investors with both capital appreciation and periodic interest income.

Monthly Income Plans (MIPs)

Monthly Income Plans (MIPs) are investment options that aim to provide regular income to investors. They combine debt and equity instruments, to strike a balance between income generation and capital appreciation. Investors receive periodic payouts, making these suitable for those seeking stable returns with moderate risk.

Employee Provident Fund (EPF)

Employee Provident Fund (EPF) is a retirement benefit program in which both employers and employees contribute 12% of the employee's salary.

Atal Pension Yojana (APY)

Atal Pension Yojana (APY), a pension scheme for Indians working in the unorganized sector. Under this scheme, subscribers gets a guaranteed minimum pension of Rs. 1,000/- or 2,000/- or 3,000/- or 4,000 or 5,000/- per month at the age of 60 years depending on the contributions made by the subscribers.

Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana is an investment scheme designed by the Government of India, which is aimed at the betterment of girl child in India. It was launched to help parents build a corpus for higher education and other expenses of their girl child.

Understand Your Financial Goals

Define your short-term and long-term financial objectives, which may include - buying a home, funding education, or retirement.

Assess Your Risk Tolerance

Evaluate your comfort level with risk. Choose investments that align with your ability to handle market fluctuations.

Consider Your Time Horizon

Decide for how long you plan to invest. Keep in mind that with longer time horizons, you can try aggressive strategies. But if you have short-term goals, it is best to take a conservative approach.

Do your research

Compare, review past performance, take feedback and gather inputs on different investment vehicles before you decide on your mix.

Diversification

It is best to pick investment instruments from different asset classes like stocks, bonds, and real estate to reduce risk and optimise the returns.

Professional Guidance

Nothing beats taking advice from financial experts. They offer personalised insights best suited to your financial needs and situation to ensure the best returns.

Costs and Fees

Be aware that all investment plans come with associated fees and charges. These do impact returns, so thoroughly do a detailed analysis of these before investing.

Monitor and adjust regularly

It is important to be involved with the progress of your investments. Periodically review and adjust your portfolio to ensure it remains aligned with your evolving financial goals.