Investments are necessary in order to pave the way for a secure financial future. However, what is the best investment plan in India that fits the bill? You should undertake a thorough comparison of multiple investment plans in order to choose the one that is in sync with your specific requirements. Here is a guide to some of the top options worth considering.
Top Investment Plans Worth Noting
Any one, multiple, or all of these can be the best investment plan in India, depending on your specific requirements or future goals.
1. Retirement Plans: You will find these available across several life insurance companies. They offer options ranging from life coverage-linked plans to standalone annuities. You can withdraw the maturity corpus at retirement and customise the payout to earn a steady income each month. There are also immediate annuities, where you invest your retirement corpus and start receiving a guaranteed income almost instantly.
2. ULIPs: Unit-linked insurance plans also combine investments and insurance. They allow you to invest in a mix of equity, debt, and balanced funds, while getting life coverage simultaneously. The returns are market-linked and subject to fund performance and policy charges, although you can earn potentially higher returns over the long term.
3. Term Insurance: This one makes it to the list as a pure life coverage product and not technically an investment for returns. However, it is an investment in securing your family’s financial future. This will give you high life coverage at a relatively lower premium amount. In case something happens to you within the plan period, your family will get the sum assured amount from the insurer, which they can use to meet various financial needs.
4. Mutual Funds: There are several types of mutual funds available for investments. You can invest through SIPs or systematic investment plans, although these investments are subject to market risks. Choose funds that align with your future objectives. Equity mutual funds offer higher growth potential but come with volatility, while debt mutual funds offer stability with lower returns.
5. Stocks: You may also consider investing directly in stocks and shares of companies. This will give you stock holdings that may generate value over the long haul. However, stock prices fluctuate based on market conditions, company performance, and economic factors, making them a higher-risk investment.
6. Fixed Deposits: Fixed deposits or FDs are among the safest investment options, as they do not have any market-linked risks while ensuring fixed and stable returns throughout the entire lock-in period. You can choose between cumulative and non-cumulative FDs, where cumulative FDs compound interest over time, whereas non-cumulative FDs offer periodic payouts. However, returns on FDs are taxable, and deposits above ₹5 lakh are not insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Which Plan Should You Choose?
The best investment plan in India is always one that syncs with your specific financial goals and risk tolerance. For example, you can get term insurance to secure your family financially in the event of any untoward situation and back it up with retirement plans for your sunset years. In the interim, choose a mix of low, medium, and high risk investments to diversify your portfolio and lower your risks. You can thus opt for FDs, mutual funds, ULIPs and so on.
