Everything You Should Know Before Buying 1 year Investment plan

We know how crucial it is to have a financial safety net for ourselves and our loved ones. The rising cost of inflation rates and uncertainties in life has made it all the more important for us to have a financial backup ready in advance. Having a financial backup will ensure that our family or us do not have to face any financial uncertainties and can achieve their goals and dreams seamlessly.

Investing in 1-year investment plans has become one of the most preferred choices amongst numerous people across the country. Let us first understand what 1-year investment plan is.

What are 1-Year Investment Plans?

As the name suggests, a 1-year investment plan is a types of investment plans for a short and specified period of time, in this case, being 1 year. This plan is ideal for those investors who are able to take high risks and invest in market-related options, such as stocks, shares, etc.

Some of the Best 1 Year Investment Plans in India

Below given are a few of the best 1-year investment plans you can invest in –

Bank Fixed Deposits (FD)

• Bank Fixed Deposits are one of the best 1-year investment plans to invest in.
• The tenure of Bank FD is of 6 months, 9 months, 12 months or more, depending on the time period you want to invest in.
• You can opt for tax deduction benefits under this plan. You can claim up to Rs. 1.5 lakhs of tax deductions in one financial year under Section 80C of the Income Tax Act, 1961. However, these laws are subject to change from time to time.

Recurring Deposits

• Under this 1-year investment plan, you have to make regular investments.
• The tenure of the Recurring Deposits investment plan is of 3 months as well as 6 months.
• You can claim the tax deductions benefits under this plan only if the interest you have earned is more than Rs. 10,000.
• This plan offers great liquidity. So, you can withdraw your money without any hassle.

Liquid Funds

• This is another one of the best 1-year investment plans in India you can consider.
• The tenure of this investment plan is typically of 90 days.
• This plan offers numerous benefits, such as high liquidity, high returns, no lock-in period, etc.
• You need to invest in equity-linked saving schemes or ELSS to claim the tax deduction. After investing in this, you can claim up to Rs. 1.5 lakhs of tax deduction benefits under Section 80C of the Income Tax Act, 1961. However, these laws are subject to change from time to time.

Money Market Funds

• This investment plan offers a maturity period of 1 year.
• This 1-year investment plan comes with great liquidity. This makes it easy for us to withdraw money in case of an emergency.
• This investment plan offers stability, great liquidity as well as security.
• Money market funds offer high and stable returns, making it one of the most preferred 1-year investment plans in India.
• This plan comes with low to moderate returns, making it ideal for those who do not have a huge risk appetite.

Bottom Line

You now know what 1-year investment plan is and which plans you can invest in India. These plans offer great returns, tax benefits, high interest rates, and great liquidity. Moreover, they will help your family, and you achieve all your short-term goals without having to face any financial constraints.