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What is an Investment Plan?
- An investment plan is a strategic approach to allocating your funds across various financial instruments to achieve specific goals. It serves as a roadmap, guiding you through the process of selecting the right investments based on your risk tolerance, investment horizon, and expected returns.
- If you want to start investing and are looking for the best investment options in India with high returns , then you’re in the right place. We’re providing a list from which you can choose the best investment options with high returns for you.
Investment Options In India to Invest in 2024
There are many investment plans in India with high returns.
1. Fixed Deposits
Investing in fixed deposits through banks presents itself as a sound investment strategy, recognized for its reliability and attractive returns within the Indian context.
2. ULIPs (Unit Linked Insurance Plans)
ULIPs are one of the safe investments with high returns in India.
Unit Linked Insurance Plans (ULIPs) are also another long term investment plan with high returns. It represents another compelling investment option within the Indian financial landscape. ULIPs seamlessly integrate insurance and investment, offering both life coverage and attractive investment prospects. They are tailored for long term wealth growth.
3. National Pension Scheme (NPS)
The National Pension System (NPS) stands as an attractive long term investment plan or one of the best long term investment opportunities for generating substantial returns. This voluntary pension scheme assists individuals in building a retirement nest egg by offering market-linked returns and associated tax advantages.
4. Stocks
Directly investing in the stocks of publicly traded companies presents an opportunity for potential growth in capital value alongside the prospect of receiving dividend income. It is one of the best long term investment opportunities.
5. Real Estate
Real estate is one of the best long term investment plans with high returns. Investing in real estate emerges as a premier choice among long term investment strategies, promising substantial returns and ranking as one of the most lucrative investment plans. Dabbling in residential, commercial, or rental properties offers the potential for capital appreciation and a steady rental income stream.
Real estate constitutes a top-tier option for sustained, long term investments, with returns that tend to grow over time.
Real estate can be one of the best investment plans for 10 years, or an investment plan for 5 years with high returns, depending on your portfolio.
6. National Savings Certificate (NSC)
The National Savings Certificate represents a five-year deposit scheme with interest payments upon maturity. Meanwhile, if needed urgently, you can trade the certificate with other investors.
7. Corporate Deposits (CD)
Corporate deposits, albeit carrying higher risk compared to FDs or debt mutual funds, offer the prospect of higher returns. Investment durations can vary, providing flexibility.
CD exit regulations closely resemble those of bank FDs, and early withdrawals may result in a partial loss of interest earnings.
8. Debt Mutual Funds
Debt mutual funds stand as an ideal choice for investments with durations of less than five years but exceeding three years. These funds offer variable returns linked to market conditions, while many maintain capital preservation despite market volatility.
To benefit from long-term capital gain provisions, it’s advisable to hold these investments for a minimum of three years. Additionally, early withdrawals from most debt funds may incur exit load charges if made before 36 months.
9. Liquid Mutual Funds & Short-Term Funds
Liquid mutual funds, ultra-short-term funds, and money market funds constitute mutual funds that primarily invest in short-term securities. Liquid mutual funds emerge as an excellent choice for short-term investments due to specific attributes:
- Potential for money market-linked returns.
- High liquidity with the ability to withdraw within one business day (T+1).
- Absence of exit charges.
If you seek higher returns over an indeterminate short period, liquid funds offer an optimal investment avenue. However, it’s important to note that capital gains from withdrawals made within 36 months of investment are added to your taxable income.
10. Recurring Deposits (RD)
Recurring deposits represent another traditional and secure investment avenue. RDs enable regular contributions of small amounts, fostering the gradual accumulation of a substantial corpus. These deposits can be initiated through your bank, using your savings account, or at post office branches.
Periodic RD deposits allow for incremental savings and the creation of a corpus over a span of 60 months.
11. Real Estate Structured Debt
Real estate structured debt is one of the best short term investment options in India.
This option presents fixed income possibilities, underpinned by real estate assets used as collateral. It ranks among the top short term investment opportunities, offering robust potential for high returns in India.
Through alternative investment platforms such as Assetmonk, investors can participate with a minimum investment horizon of 36 months.
This investment avenue particularly caters to senior citizens in India, providing them with a consistent stream of monthly income in the form of fixed returns. It is also one of the best short term tax saving investments in India.
12. Derivative, Commodities & Stocks Market
Derivatives, Commodities and stocks provide short-term investment opportunities are another investment options in India for short term with the potential for high returns.
Unlike certain investments, there are no mandatory holding periods for these assets, granting the flexibility to enter and exit at will.
Nonetheless, it’s crucial to acknowledge that these investments carry substantial risks, necessitating caution. Thus, unless your risk tolerance aligns with such options, it’s advisable to stick to investments offering more stable returns.
13. Equity Mutual Funds
Investing in equity mutual funds for durations of less than five years is possible. However, considering the inherent volatility in equity markets, it’s prudent to maintain a longer investment horizon. Despite allowing withdrawals after just 12 months, early redemption may expose your capital to potential losses. Thus equity mutual funds are one of the good investment options in India for long term.
Therefore, equity mutual funds is a investment plan for 5 years with high returns.
Systematic Investment Plans (SIPs) stand as a preferable mode for investing in equity funds. This approach involves regular fixed investments, leading to a lower average unit cost compared to market rates, potentially increasing profitability.
14. Treasury Securities
Treasury securities, commonly known as T-bills, represent government-backed short-term money-market instruments. The Reserve Bank of India (RBI) issues T-bills through open market operations (OMO). These zero-coupon bonds mature in 91, 184, or 364 days.
T-bills offer capital safety and consistent returns within a one-year maturity period, with the added benefit of tradability for swift access to funds.
15. Public Provident Fund (PPF)
The Public Provident Fund (PPF) stands as a top-tier option among long term investment schemes, offering government-backed assurance. PPF emerges as a premier choice for individuals seeking secure, government-guaranteed, long term investment opportunities.
Here are the key details: Know more About PPF
16. Employee Provident Fund (EPF)
The Employee Provident Fund (EPF) stands as a prime choice for retirement savings, with a portion of your earnings directed into a provident fund that accumulates interest over an extended period. Here are the key details:
17. Mutual Funds
Mutual funds emerged as top-tier long term investment plans with high returns within the Indian landscape, bringing together investments from a multitude of individuals to construct a diversified portfolio encompassing bonds, equities, and a range of other securities.
18. Gold
Investing in gold ranks among India’s top-performing long term investment plans, known for its potential for robust returns. Allocating funds into gold or other valuable metals serves as a safeguard against the eroding effects of inflation and the uncertainties of the financial market.
19. Equity Funds
Equity funds in India stand out as one of the premier long term investment plans with high returns in India. These funds pool money from investors and invest in a diversified portfolio of stocks. With a recommended investment horizon of five years or more, equity funds offer the potential for substantial capital appreciation over time. They are known for their ability to outpace inflation and deliver attractive returns, making them an ideal choice for individuals looking to build wealth over the long haul.
Which Is The Best Investment Plan?
There’s no one best investment for everyone. Every money investment idea depends upon the individual investor’s risk appetite and financial goals for investment.
Different Investment Options In India based on Risk Appetite
If you want to know where to invest money to get good returns, here are some high return investment opportunities categorised per risk levels:
Low-Risk Investments
Low-risk investments provide limited exposure to market risks, focusing on capital preservation and steady, albeit lower, returns. These include:
- Public Provident Fund (PPF): A government-backed savings scheme with attractive tax benefits.
- National Pension System (NPS): A retirement-focused investment with low risk.
- Post Office Savings Scheme: Various savings products offered by the postal department, known for their safety.
- Fixed Deposits (FDs): Both bank and company FDs offer fixed returns over a specified period.
- Senior Citizen Savings Scheme (SCSS): A government-backed scheme designed specifically for senior citizens.
- RBI Taxable Bonds: Government-issued bonds that provide regular interest payouts.
- Traditional Life Insurance Plans: Insurance products that offer guaranteed returns along with life cover.Understanding your risk appetite helps tailor your investment portfolio to align with your financial goals and comfort with risk.
Medium-Risk Investments
Medium-risk investments strive for a balance between risk and reward. They combine high-risk assets with more stable ones to mitigate risk during market downturns. Examples include:
- Debt and Balanced Mutual Funds: These funds invest in a mix of stocks and bonds, aiming to reduce risk while offering reasonable returns.
- Government and Corporate Bonds: Bonds are generally safer than stocks, with government bonds being particularly secure.
- Gold Investments: Investing in gold, whether through physical gold or financial products like gold ETFs, offers a hedge against market volatility.
High-Risk Investments
High-risk high return investments are typically market-linked and can offer substantial returns, though they come with significant volatility. These include:
- Stocks: Directly investing in company shares can yield high returns, but stock prices can fluctuate widely.
- Mutual Funds: Particularly equity-focused mutual funds, which invest in a diversified portfolio of stocks.
- Initial Public Offerings (IPOs): Investing in new stock issues can be lucrative but is often unpredictable.
- Equity-heavy Unit-Linked Insurance Plans (ULIPs): These combine investment and insurance, with a major portion allocated to equities.
Understanding your risk appetite helps tailor your investment portfolio to align with your financial goals and comfort with risk.
Comparisons Of Different Investment Options
| Investment Options | Risk Level | Potential Returns | Liquidity | Suitable for |
| Real structured debt | Low | 12%-20% | High | Investors who want small investments big returns |
| Fixed Deposits (FDs) | Low | 4%-8% | Varies depending on terms | Conservative investors looking for capital preservation and regular income |
| Public Provident Fund (PPF) | Low to Moderate | 7.1% | Low (lock-in period of 15 years) | Individuals seeking tax-efficient, long-term investments |
| POMIS | Low | 7.1% | Moderate | Investors seeking low-risk investment with regular monthly income |
| Mutual Funds | Varies (based on fund type) | 6%-9% | Moderate to High (depending on fund type) | Investors seeking professional management and potential for higher returns |
| National Pension System (NPS) | Moderate | 8%-10% | Low to Medium (withdrawal restrictions apply) | Individuals planning for long-term retirement |
| Equity Shares | High | 6.6% | High (can be bought and sold on stock exchanges) | Investors with a higher risk appetite and a long-term investment horizon |
| Sovereign Gold Bonds | Moderate | 2.5% | Low | Individuals seeking a hedge against inflation and want fixed income |
| Gold | Moderate | 12% | Moderate (depending on form of investment) | Individuals seeking a hedge against inflation and currency fluctuations |
Note: Remember that the choice between long term and short term investment plans with high returns in India depends on your financial goals, risk tolerance, and investment timeline. A balanced approach often involves having a mix of both short-term and long-term investment plans to cater to different financial needs and optimise returns while managing risk.
Tax Benefits with Investment Plans
Here’s the information in tabular format:
| Type of Investment | Tax Benefits |
|---|---|
| PPF | The amount invested is deductible under section 80C of the Income Tax Act, 1961 subject to the limit of Rs. 1,50,000/-. The maturity and interest amount earned are exempt under section 10. |
| Mutual Funds | Investment in Equity-Linked Mutual Fund schemes is eligible for tax deductions under Section 80C of the Income Tax Act. |
| Direct Equity | Investments are not eligible for tax deductions and the proceeds are fully taxable. |
| Real Estate Investment | These investments are fully taxable, depending on whether the investment is short-term or long-term. |
| Gold Investments | Investments in gold are fully taxable, depending on whether the investment is short-term or long-term. |
| Post Office Fixed Deposit | Investments in 5-year deposits are eligible for tax deductions under Section 80C of the Income Tax Act. |
| Company Fixed Deposits | Interest earned on fixed deposits is taxable. |
| IPOs | Investments in IPOs are not eligible for tax deductions, and profits are treated as capital gains, which attract taxes. |
| ULIPs | Premiums paid for ULIPs are eligible for tax benefits under Section 80C. Tax exemption on maturity proceeds is available if premiums do not exceed Rs. 2,50,000 and 10% of the death sum assured. The death benefit is not taxable. |
| Bonds | Interest earned and capital gains on bonds are taxable. |
| Bank FDs | Interest earned on fixed deposits is taxable. Senior citizens can benefit up to Rs. 50,000/-. |
| SCSS | Investments are tax deductible under Section 80C up to Rs. 1,50,000/-. Interest earned is taxable, but senior citizens can claim a deduction up to Rs. 50,000 per year under Section 80TTB. |
| NPS | Deduction of contribution can be claimed under section 80CCD with an additional deduction of Rs. 50,000 under section 80CCD(2), not exceeding Rs. 1,50,000 overall. Up to 60% of the maturity corpus can be withdrawn tax-free. |
| Life Insurance | Premiums paid are eligible for tax benefits under Section 80C. Maturity benefits are exempt if premiums paid do not exceed Rs. 5,00,000 and 10% of the death sum assured. The death benefit is not taxable. |
Why is Investing Better than Savings?
The key differences between investing and saving lie in their objectives, risk levels, returns, and time horizons. Here is a detailed comparison:
| Aspect | Saving | Investing |
|---|---|---|
| Objective | Safety and preservation of capital | Wealth creation and capital growth |
| Risk Level | Low risk; principal amount is generally secure | Higher risk; potential for loss of principal |
| Returns | Lower returns; interest rates on savings accounts are typically modest | Higher returns; potential for significant gains |
| Time Horizon | Short-term; suitable for immediate or near-term financial needs | Long-term; suitable for future financial goals |
| Liquidity | Highly liquid; funds can be easily accessed | Varies; some investments are liquid, while others may have lock-in periods |
| Examples | Savings accounts, fixed deposits, money market accounts | Stocks, bonds, mutual funds, real estate, gold |
| Inflation Impact | Savings may not keep pace with inflation, eroding purchasing power over time | Investments have the potential to outpace inflation |
| Tax Benefits | Limited tax benefits; interest on savings accounts may be taxable | Various tax benefits; deductions, exemptions, and favorable capital gains |
| Professional Management | Generally, no professional management required | Often managed by professionals, especially mutual funds and portfolios |
| Financial Discipline | Encourages regular savings but may not promote long-term financial planning | Encourages long-term financial planning and regular contributions |
| Risk of Loss | Minimal risk of losing the principal amount | Possibility of losing the principal amount due to market fluctuations |
| Capital Appreciation | Minimal; primarily focused on capital preservation | Potential for significant capital appreciation |
- Saving is typically used for short-term financial goals, emergency funds, and ensuring immediate liquidity. It prioritizes the safety of principal and offers low returns, often insufficient to outpace inflation.
- Investing is aimed at long-term financial goals, such as retirement, education, or wealth accumulation. It involves higher risk but offers the potential for higher returns, making it possible to outpace inflation and grow wealth significantly over time.
Understanding these differences can help in making informed decisions based on individual financial goals, risk tolerance, and time horizon.
Documents Required For Investment
Now, you must be wondering: What are the documents required to invest in India?
Here are Top required documents such as
- Aadhar,
- PAN,
- KYC documents,
- bank details,
- Photo identity … etc.
Conclusion
I hope after going through this exhaustive list of short term and long term investment plans with high return, you’re not still worried about the question: Where to invest money to get good returns in India?
Investing is a vital tool for growing wealth, achieving financial goals, and securing your future. By understanding the various india investment options, assessing risk, diversifying your portfolio, and planning wisely, you can navigate the investment landscape with confidence.
Remember to consider your unique circumstances, get expert advice when needed, and start learning how to invest money for maximum returns.
Assetmonk is one of the best alternative investment platforms in India. At Assetmonk, we specialise in offering personalised support and carefully selected real estate-backed fixed-income investment products. These are the best guaranteed return investments plan and small investments and big returns investments. You can invest with just Rs. 10 lakhs.
Our focus is on providing an exceptional Internal Rate of Return (IRR) of 17% by tapping into growing private markets worldwide.
We prioritise security and stability, aiming to safeguard investor interests regardless of external circumstances. With optimism for a brighter future, we emphasise making well-informed decisions to protect and grow investment portfolios. So, if you are looking for the best investment plan with assured returns, contact Assetmonk.
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FAQs About Choosing the Investment Options in India
| 1.What Are the Best Investment Options for Good Return? A. Best Investment options for Good Return are: Real estate structured debt, National Pension Scheme (NPS) SIPs, Fixed Deposits (FDs) |
| 2. Is It Good to Choose Long Term Investment Options? A. Long-term investments, such as stocks and Real estate structured Debt, provide higher returns compared to short-term investments. They offer the potential for capital appreciation and higher yields, especially during periods of economic growth. |
| 3.What Are the Risk Factors I Should Consider While Selecting Investment Options? A. 5 key factors to check before choosing an investment plan:1. Return on Investment (ROI)2. Time to Goals3. Cost4. Liquidity5. Tax Considerations |
| 4.What Are the Best Investment Options for Tax Saving in India? A. Best Investment options for Tax Saving in India are: Unit Linked Insurance Plans (ULIP)Real estate Structured Debt, Public Provident Fund (PPF)National Pension System (NPS)Structured debt real estate is one of the best investment options for Tax Saving. Via alternative investment platforms like Assetmonk, you can get an assured IRR of 17 percent. Furthermore, Investors have the opportunity to benefit from potential tax savings of up to Rs. 50,000. |
| 5.What is the difference between a savings plan and an investment plan? A. Saving money typically implies putting an amount aside for later use without facing any risk of losing its value. On the other hand, investments consider a long-term strategy for a particular financial objective. The most foundational difference between savings and investment plans is Risk. |
| 6.Why Should I opt for an Investment Plan? A. Plans for investments and savings assist you in building up money over time. You can select the investment period based on the kind of financial goal you have, whether it be long-term, mid-term, or short-term. It is not necessary to stay invested in saving plans for at least 5 years. Real estate structured debt investments has a Lock-in period of just 36 months and you can additionally avail tax benefits up to Rs. 50, 000. |
| 7.Should I opt for a Short-term or Long-term Investment Plan? A. If you want to preserve your capital and are happy with moderate returns then choose short term investments. However, if achieving higher returns is your aim, then you should make long-term investments.Though it is important to consider your income, needs, and risk-appetite before you make an informed decision to choose between a Short-term or Long-term Investment Plan. |
| 8. How much can I withdraw from my investments? A. An investment in an open end scheme can be redeemed at any time. Redeemable investments are unrestricted unless they have a lock-in period like in an Equity Linked Savings Scheme (ELSS), there is a 3-year lock-in period from the date of investment. |
| 9.What is the safest investment with highest refund? A. Real estate Structured Debt is the safest investment with the highest refund which offers an assured IRR of 17%. |
| 10. What is the 72 rule in investing? A. A calculation known as the Rule of 72 determines how long it will take to double your money at a given rate of return. If, for example, your account earns 6 percent, divide 72 by 6 to get the number of years it will take for your money to double. In this case, 12 years. Years to double = 72 / rate of return on investment (or interest rate) |
| 11.How can I grow my money fast? A. Best ways one can grow his money to its full potential are: Say No to Debt. Be Consistent in your Investment Start Early Invest Smartly Diversify your Investments Investing in Real estate Structured Debt is one of the fastest, most efficient and most effective ways to grow wealth over the long haul. |
| 12. What is the safest investment? A. Bank Fixed Deposit (FD) and Real Estate Structured Debt are the safest investment option with assured returns. Real estate structured Debt offers an assured IRR of 17%. |
| 13. How can you double your investment in five years? A. Real estate is an investment option which is capable of doubling your money in a period as low as 5 years. It provides for a stable cash flow as you can rent the property and is far more predictable from any other investment options. For example if you wanted to double an investment in 5 years, divide 72 by 5 to learn that you’ll need to earn 14.4% interest annually on your investment for 5 years: 14.4 × 5 = 72.Real estate structured Debt offers an assured IRR of 17%. |
| 14. What is the best investment plan for 1 and 5 Years? A. Best One-Year Investment Plans, Some of the best one-time investment plans for 1 year are as follows: Fixed Deposits, Mutual Funds, Post-office term deposits, Best Investment Plan for 5 Years. Some of the best one-time investment plans for 5 year are as follows: ULIPs, PPF and EPF 5-Year Fixed Deposits ,Stocks |
| 15.Which investments are best for 5 years? A. ULIPs, PPF and EPF, Stocks, NPS (National Pension Scheme)Investors may also consider investing Real Estate Structured Debt which offers an assured IRR of 17% and a lock-in period of just 36 Months. |
| 16. What are the top 10 investment options in India? A. Top 10 investment options in India are: Real estate structured debt, FDs, PPF, NPS, Pradhan Mantri Vaya Vandana Yojana, Mutual Funds, Debt Funds, Systematic Investment Plans (SIPs),Unit-Linked Insurance Plans (ULIPs),Gold and Precious Metals |
| 17.What is the safest investment? A. Real Estate Structured Debt is the safest investment option with assured IRR of 17% via alternative investment platforms like Assetmonk. |
| 18. Are bonds a good investment right now? A. Because of the low interest rate environment, many investors have been hesitant to hold bonds for years, but that shouldn’t be the case anymore. One challenge presented by the current environment is the inverted yield curve, which means long-term yields are lower than short-term yields. In the past, investors would require greater yields in exchange for lending their money for longer durations, but that isn’t the case right now. Ultimately, the decision on whether or not to hold bonds and in what amount will depend on the unique circumstances of each individual investor. But the rise in interest rates has made bonds more attractive than they’ve been in over a decade. |
| 19. Which investment has the highest returns? A. Real Estate Structured Debt has the highest returns with an assured IRR of 17% and additional tax benefits upto 50,000. |
| 20. Where should I invest money for the best returns? A. Real estate is an investment option for best returns. It provides for a stable cash flow in the form of rentals and is less volatile to market fluctuations than any other investment options. |
Investors should choose their investment options based on their financial goals, risk tolerance, and investment horizon. It is advisable to diversify investments across different asset classes to reduce risk and optimize returns.
