Some of the Best Investment Plans in India: Top Features & Benefits

In simple terms, investing means committing a certain amount of money in a certain asset that leads to growth and saving of your money. This can help you for future financial requirements and security. Considering the rising inflation rate, investing your money has to be on your to-do-list and essential for financial security. Investing helps you achieve your goals and save for any mishap. It also helps you get to grips with inflation.

Benefits of Best Investments Plans in India include :

• Tax Benefits
• Long Term Returns
• Ideal Source of Regular Income
• Death Benefits
• Helps You Pay off Your Debts
• Provides a Financial Backup for Your Family

Types of Investment Plans include :

• Unit Linked Investment Plans (ULIP)
• Mutual Funds
• National Pension Scheme
• Public Provident Fund (PPF)

It becomes difficult for an investor to decide which plan to go for with so many insurance plans. Given below are some of the top features of the best investment plans in India that will make it easy for an investor to choose a plan that is ideal for his needs.

1. Unit Linked Investment Plan (ULIP)

Unit Linked Insurance Plan (ULIP) is one of the leading long-term investment plans. Here, some amount of money invested by the policyholder is kept for insurance purposes. The rest of the amount is kept for investment in the market in bonds, equity, stocks, etc.

ULIP serves dual purpose of both investing your money as well as insuring your money. The returns you get on your invested money solely depend on how the market is performing.

A few of the various benefits of the Unit Linked Investment Plan (ULIP) are –

• Free to Choose The life Cover You Want: With ULIP, you are free to choose whatever life cover you want to choose. The annual life covers that the investor gets is much higher than the premium paid by the investor.

• Tax Benefits: Under the Income Tax Act, ULIP provides tax benefits to the policyholder. However, tax laws are subject to change for time to time. Note- In ULIPS, the investment risk in the investment portfolio is borne by the policyholder. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale.

• Freedom of Partial Withdrawal: ULIP gives you the freedom to partially withdraw the money that you have invested after the 5 years lock-in period.

• Planning Your Goals Become Easy: ULIP lets you plan your financial goals, such as your child’s education, health expenses, retirement plans, etc., with ease.

2. Mutual Funds

Mutual Fund is a type of investment where the money invested by investors is pooled and is put in the market towards stock, equity, bonds, etc. The performance of the money invested by the policyholder depends on how the market is performing.

Few benefits of mutual funds are :

• Mutual Funds are easily accessible, i.e., they can be bought and sold in the market with no difficulty.
• There is a vast choice to choose from, i.e., people can choose from developed markets, developing markets, etc.
• Mutual Funds are managed by professional investors who take care of everything.

3. National Pension Scheme (NPS)

National Pension Scheme is a type of investment retirement scheme that allows the investor to have regular income and financial stability even after retirement. Few benefits of NPS are :

• Tax Benefits as per current tax laws
• Scheme will remain the same even if you change your city or state or your job.

4. Public Provident Fund (PPF)

Public Provident Fund is an investment plan which has a minimum tenure of 15 years. It provides a good interest rate and is an ideal long-term investment plan. Few benefits of PPF are :

• It provides tax benefits
• The investor, if he wants, can get his 15-year tenure extended by five years.
• It is risk-free.

Understandably so, it is difficult to choose the best investment plan among the many options available in the market. Everyone wants to opt for top-rated investment companies for financial security and good interest rates. You can search online for various insurance companies that offer great investment avenues.

Choosing the Right Investment Plan

Given the plethora of investment plans available, it can be challenging to make the right choice. Here are some features to consider when selecting the best investment plan for your needs:

• Risk Tolerance: Assess your risk tolerance and choose a plan that aligns with your comfort level. For those seeking a balance between risk and returns, ULIPs could be a suitable option.

• Financial Goals: Clearly define your financial goals, whether it's funding your child's education, building a retirement corpus, or any other objective. Different plans cater to specific goals, so align your choice accordingly.

• Liquidity Needs: Consider your liquidity needs and opt for plans that allow partial withdrawal or easy access to funds, such as mutual funds.

• Tax Planning: Evaluate the tax benefits offered by each investment plan and choose one that complements your overall tax planning strategy.

• Professional Guidance: Seek advice from financial experts or consult with a certified financial planner to make informed decisions based on your unique financial situation.