Some of the Best Investment Plans for 3 Years
1. Liquid Funds
Liquid funds are a type of mutual fund that invests money in government securities and deposits. If you want to have high liquidity, you can invest in liquid funds. You can keep your money in liquid funds for even 1 day or up to 90 days and even more, but the maturity period of these funds is 90 days.
There are rare chances that you will see a dip in net asset values of liquid funds as the fund managers also invest in cash market investments. Therefore, liquid funds are less risky and offer 4% - 7% returns which makes it one of the best three-year investment options.
2. Short Term Funds
Short-term funds are the best investment plan for 3 years as these funds offer a decent rate. The fund managers of these invest in securities that have a maturity period of up to 3 years.
Since banks offer deposits of different time durations that begin with at least 7 days, you can choose a set deposit with matching tenure.
Taxation on short-term funds is similar to debt funds. When it comes to taxes, short-term funds are at par with liquid funds. The earnings of this fund are taxed at a marginal tax rate. So, if you are looking for such funds, you can invest in short-term funds.
3. Savings Account
Savings accounts offer maximum liquidity along with a minimum of 4% returns. You can invest your money by putting it into a savings account. However, putting money into a savings account is not considered a good source of earning returns, but you can choose this if you don't want to compromise with the liquidity of your money.
4. Recurring Deposits
Another best investment plan for 3 years is recurring deposits. A recurring deposit is a kind of secure investment option where you invest your money monthly. If you don't want to invest a lump sum amount and distribute the investment, recurring deposits are the best option for you.
Two recurring deposits are there: postal and financial institutions, wherein financial institutions offer recurring deposits for a minimum of 6 months to a maximum of 10 years. So, you can include it in your 3-year investment plan.
5. Fixed Maturity Plans
As the name suggests, fixed maturity plans have a fixed maturity date, and you cannot use them before maturity. Fixed maturity plans are one of the best investment plans and have a fixed maturity of a minimum of 3 years.
Fixed maturity plans are tax-efficient and offer better returns than fixed deposits. But these are similar to FDs. You can opt for fixed maturity plans if you are patient enough to wait till the end of the maturity period.
6. ULIP Plans
Unit Linked Life Insurance Plan is a type of insurance that combines the benefits of savings and protection in a single plan. It is a combination of insurance and investment wherein the policyholder can pay a monthly or annual premium. Out of the premium paid, a small amount goes to secure life insurance and the rest of the money is invested in bonds, stocks, or mutual funds.
With the help of ULIP Life insurance and investment, you can increase your savings along with protect your loved one's future from unexpected times. ULIP policy offers the investors an option to either invest in equity or debt. Investing in the ULIP scheme can cover your loved ones with a high sum assured, which is given in case of the policyholder's death. In the ULIP Life insurance, the policyholder can withdraw a partial amount of the savings when required.
