Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Top 10 Investment Plans Available in India

Financial planning should include investment planning, which involves using savings and making smart investments to increase returns. Prudently planning your investments gives you a feeling of direction and aids in choosing the best investment strategy.

  • Mar 04, 2020
  • 15,129 Views

Most earning individuals always look for an investment option that suits their budget and expectations. Long-term savings plans that also offer tax benefits are preferred as they aid in reducing tax liability. But it also depends on your risk appetite, which usually guides the investment decision. So, here is a list of savings and investment options available in India.

    Key takeaways

  • Public Provident Fund
  • Real Estate
  • Senior Citizen Savings Scheme
  • National Pension Scheme
  • Unit-Linked Insurance Plans
  • Fixed Deposits
  • Equity Mutual Funds
  • Gold
  • National Savings Certificates

The top 9 Investment Plans available in India are

1. Public Provident Fund

Public Provident Fund is a government investment scheme with a lock-in period of 15 years. The interest earned on the invested money gets compounded yearly, giving handsome returns after maturity. The maximum amount that you can invest per financial year is ₹1,50,000, with a minimum of ₹500. You can choose to invest in a lump sum or opt for a monthly method. Partial withdrawals are allowed after the completion of five years from the date of the first investment. By investing in PPF, you can claim income tax deductions under Section 80C, which has a maximum cap of ₹1,50,000 per financial year.

2. Real Estate(SCSS)

Real estate has always been the go-to investment option for many people. And even today, the rates are growing, making real estate a lucrative option. Most also find it a safer option when compared to investing in other financial instruments.

3. Senior Citizen Savings Scheme (SCSS)

Senior Citizen Savings Scheme is one of the fruitful investment plans for senior citizens. You can only opt for it if you are above the age of 60 years which is the retirement period for most. But if you have taken a Voluntary Retirement Scheme (VRS), you can start investing in SCSS at the age of 55. The interest rates and returns of SCSS are lucrative and also give you tax benefits under Section 80C.

4. Unit-Linked Insurance Plans (ULIP)

ULIP is an insurance plan with a part investment component. So, you are able to secure a life cover and also invest according to your risk appetite in Unit-Linked Insurance Plans. It has a lock-in period of five years and gives you the option to switch between investment funds for a fixed number of times. Income tax deductions under Section 80C can be claimed for the amountcontributed towards ULIPs.

5. National Pension Scheme (NPS)

NPS is a guaranteed investment plan for employees that do not have a pension system in place. Private organizations do not have a pension option, whereas in government organizations, you are eligible for one.

Hence, with the National Pension Scheme, you can set up something similar for your retirement period. The corpus stays locked until you retire, giving good returns in the future. You can also avail of tax benefits on the contributions made annually under Section 80C.

6. Unit-Linked Insurance Plans (ULIP)

ULIP is an insurance plan with a part investment component. So, you can secure a life cover and also invest according to your risk appetite in Unit-Linked Insurance Plans. It has a lock-in period of five years and allows you to switch between investment funds a fixed number of times. Income tax deductions under Section 80C can be claimed for the amount contributed towards ULIPs.

7. Fixed Deposits (FD)

Bank fixed deposits are low-risk investment options that are the most popular in India. The returns are fixed, giving you flexible investment tenures. Though the interest rates are lower when compared to the returns of other investments, many prefer it. The interest payable of the FD can be set to monthly, yearly, weekly, etc.

Stocks are where equity mutual funds primarily invest. But they don’t concentrate all of your resources on just one or a few stocks. These funds spread your assets among a variety of stocks. The fact that experienced fund managers manage these funds is more significant. So they only invest your money after conducting a sufficient investigation. It consequently raises your chances of generating profitable returns over time.

8. Equity Mutual Funds

Getting professional assistance and diversifying your investments across several equities are two ways to lower the risk of avoiding wealth-destroyers. Equity mutual funds can be useful in this situation.

Stocks are where equity mutual funds primarily invest. But they don’t concentrate all of your resources on just one or a few stocks. These funds spread your assets among a variety of stocks. The fact that experienced fund managers manage these funds is more significant. So they only invest your money after conducting a sufficient investigation. It consequently raises your chances of generating profitable returns over time.

9. Gold

Gold has stood for wealth since the beginning of time. And as an investment strategy to combat inflation today, it still holds appeal.

In the past, there have only been physical gold purchases available. However, there are limitations, such as storage expenses and fees for designing or additive manufacturing. To overcome these limitations, you can buy gold via mutual funds and exchange-traded funds (ETFs). In the past, gold has typically failed to provide long-term investors with substantial returns on par with those of stocks.

The Indian government supports the post office savings product known as the National Savings Certificate, or NSC. Like a 5-year FD, it operates. Therefore, you will receive 6.8% annual income on your NSC savings when they mature in 5 years. But only the full amount is due at maturity.

NSC is thus one of the safer investment options if your objective is five years away. But compared to Debt Funds or Hybrid Funds, it has drawbacks, including a 5-year lock-in and modest returns.

Wrapping Up

There are dangers involved in investing your money in financial products that could increase your return. It is wise to properly research the potential dangers associated with the product you are investing in before making a purchase.

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure

Features

  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Why Are ULIPs Called Flexible Investments?

How To Invest Money In ULIP?

What is Direct Investment and its Types?

What are loyalty additions, and how do they work in a ULIP?

How to Plan Your Child's Education - A Step-by-Step Guide

Short Term and Long Term ULIP Plans for Wealth Creation

Got a Salary Hike? Here’s How to Plan your investment further

What is SIP Calculator, And How Does it Work?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

How to Plan Savings from Salary?

How to Use Recurring Investment Strategies to Build Wealth?

What are Tax-Deferred Savings Plans?

ULIP Capital Gain Tax: Check Tax Norms for Capital Gain on ULIPs

Does Rupee Cost Averaging Work In Unit-Linked Insurance Plans?

What are Financial Assets & their types?

What are Some of the Safest Investment Options in India?

Receiving regular payouts at various stages of life

Are Investment Returns Guaranteed in a ULIP?

What is ULIP Renewal?

How to Calculate Your ULIP Returns?

ULIP NAV Meaning & How is the Return Calculated in ULIP

What is ULIP Plan, and How Does it Work?

Are Money Back Policies Helpful? A Complete Guide

How Do One-Time Investment Plans Work?

Here's Why it's a Good Time to Explore ULIPs as an Investment

Why Do You Need A ULIP Plan - All You Need To Know

Which is Better – FD, Mutual Fund, SIP, or ULIP?

Corporate Bonds: Meaning, Types & Benefits

How to Choose the Best ULIP Plans to Invest in 2022?

How to Make Your Financial Portfolio?

ULIP as an Investment for Your Child

What is the Time Value of Money (TVM)?

Factors Affecting Stock Markets

ULIP Benefits You Can Avail from Early Investing

Best One-Time Investment Plans in India

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

How Does an Endowment Plan Work?

Learn About Safe Investments with High Returns in India

Difference Between Guaranteed Savings Plan and ULIP

What is Equity Mutual Funds: Meaning, Types & Benefits

Planning for Your Child's Higher Education? Explore These Investment Options

8 Important Tips to Maximize Gains with ULIP Investments

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

What are Mutual Funds?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Best Investment Options to Cover Your Child's Education

How is the Compound Annual Growth Rate (CAGR) Calculated in ULIP?

What are the Best Investment Options for Young Adults?

Why Should You Build an Emergency Fund?

Best Investment Options in India in 2022

What are the Best Short-Term Investment Plans with High Returns?

How to Increase Net Worth Along with Family Protection

Different Types of Endowment Plans

Importance of Portfolio Management

What are the Best Investment Options For Females?

Benefits of ULIP as a Child Insurance Plan

How To Diversify Portfolio In 2022?

How to Cancel ULIP Policy?

How to Fulfil Your Financial Goals in the Next 10 Years?

Early Investing and the Power of Compounding

Top 5 Principles That Need to be Followed for Wealth Creation

Best Guaranteed Returns Investment Options to Meet your Financial Goals

How Can ELSS Funds Help You Save Tax & Create Wealth?

What is ULIP and Its Benefits?

What is a Credit Score and How Can Insurance Help You Improve it?

Difference Between Passive and Active Investing

Do You Know the Difference Between Savings and Investment?

What is Compound Interest, And How Do I Calculate it?

Important Questions You Must Ask Yourself When Buying a ULIP Plan

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

Top 5 Investment Options in 2022 for Healthy Returns

Why Should Parents Invest in Endowment Plan?

Which are the Best ULIP Plans in India for Children?

Long Term Savings Plan - Best Savings Investment Plans in India

Best Investment Plans for Children - Secure Your Child's Future

Asset Allocations in ULIP - Know the Top Benefits

Why are ULIPs One of the Best Tax Saving Instruments?

Why Should I Invest in ULIP?

Planning Financial Goals and Objectives of Financial Planning

यूलिप के फायदे (Benefits of ULIP in Hindi)

Investment Options for NRIs in India

What is Money Management? Definition & Example

How to Plan your Investment to Achieve Periodic Financial Goals?

Are Gains from ULIP Sale Taxable?

Creating a second source of income with life insurance

Things to Know Before Buying an Endowment Plan

Learn About Safe Investments with High Returns in India

Successful Financial Planning for Urban Women

Can ULIP Help in Achieving Short-Term Financial Goals?

ULIP Plan as a Gift

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

What are the Best Investment Options for Students in India?

How To Track ULIP Performance?

Can ULIP Policy be Transferred?

ULIP vs FD - Which is Better and Why?

How Much Wealth Can You Create from ULIP in 10 years?

How to Manage Your Portfolio Like a Professional?

Four Financial Lessons from The Vedas on Living Life to The Fullest

The lesser-known facts about ULIP policy that customers should be aware of?

Top 10 Investment Strategies to Create Wealth

What is the Importance of Saving Money?

What are the Best Investment Options for Beginners or Amateur Investors in India?

Safe Investment Options with High Returns for FY 2018-19

How to Manage Inheritance Money?

Building wealth through regular investing

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

What is a Savings Plan and What are is Benefits?

Rate of Interest on Different Investment Plans in India

Which is a Better Investment - Mutual Funds Or ULIP?

Why ULIP is Better Investment for Long-Term Wealth Creation?

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

What is better - Guaranteed Savings Plan or Fixed Deposit?

Investments Options to Buy a house in India

How to Start Saving Money in 10 Simple Ways?

6 Important Tips to Maximize Your Gains with ULIP Investments

ULIPs Investment – A Boon or Bane?

Endowment Plan vs Fixed Deposit?

4 Benefits of ULIP Fund-Switching Feature

What are Index Funds and How Do They Work

What's Better for Your Child's Education? Child Plans or Mutual Funds?

Is This The Right Time To Invest In ULIP? Why or Why Not?

Savings Plan for Grandchildren

Customising investments to manage your wealth

Why Should You Invest in Term Insurance And ULIP?

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

How Is ULIP Different from Other Life Insurance Plans? Where Can I Invest - ELSS, ULIP, or PPF?