7 Top Investment Plans and Their Benefits in India

There is a reason why investment plans have seen a rise in the past few years, especially after the Covid-19 pandemic. We all know that life is uncertain. We never know when an unforeseen event may knock on our doors, leaving us not knowing what to do. This is why it is crucial for us to be financially prepared well in advance to avoid such hassle in the coming years. Keeping this ins mind, people have started investing in investment plans. This ensures that you and your family are financially secure and can seamlessly continue with your lives.

Talking about investment plans there are numerous investment plans available to choose from. With this, people might face hassle. That’s why we have prepared a well-structured guide on the top 7 investment plans in India, along with their benefits for you to choose from.

Some of the Top Investment Plans in India

These are some of the best investment plans in India considered by the experts.

1. Unit Linked Insurance Plan

Commonly known as ULIP Plan, this investment plan is one of the best long-term investment plans to invest in. This plan provides the dual benefit of both investment and insurance. In other words, a certain part of the premiums you pay will be used for an insurance purpose, and the remaining part of the premium is used as an investment in the market like stocks, shares, bonds, etc.

Key benefits of ULIP include high returns and tax benefits for upto 1.5 lakhs in one financial year under Section 80C of the Income Tax Act, 1961.

2. Public Provident Funds (PPF)

PPF is a long-term investment plan and one of the most secure plans to invest in. It comes in with a lock-in period of 15 years, though the investor can make partial withdrawals after the 7^th year of the policy.

Key benefits of PPF include high returns, security as well as tax benefits under Section 80C of the Income Tax Act, 1961.

3. Mutual Funds

Mutual Funds is another one of the top investment plans for all those looking for an investment in India. It is an alternative to market-linked investment, wherein the premiums paid by the investor are used as an investment in financial options, such as Equity, bonds, shares, stocks, etc. The returns the investor will get directly depend on the market performance.

Key benefits of investing in mutual funds include high returns, diverse options to invest in, transparency, etc.

4. National Pension Scheme (NPS)

NPS is one of the best retirement plans to invest in. It ensures that the investor is financially secure when he retires and can enjoy his golden years without any hassle. Moreover, it provides regular income after your retirement to meet all your financial requirements.

Key benefits of NPS include financial security, tax benefits, ideal interest rates, provision of partial withdrawals, etc.

5. Senior Citizen Saving Scheme (SCSS)

SCSS is a long-term investment plan involving no risk for all citizens who are above the age of 60. It offers regular income after you retire, ensuring that you are financially secure and face no hassle in your golden years, and can enjoy yourself with your loved ones seamlessly.

Benefits of a senior citizen savings plan include high-interest rates, flexibility, facility of partial withdrawals, tax benefits, etc.

6. Bank Fixed Deposits

Bank Fixed Deposits is an ideal investment plan for all looking for fixed returns. Moreover, the market fluctuations do not affect the returns received by the investor. It ensures the financial security of the investor and his or her family and is one of the safest plans to invest in.

Key benefits of Bank Fixed Deposits include high and fixed returns, tax benefits, flexible tenure, provision of loans, etc.

7. Direct Equity

Direct Equity is one of the best long-term investment plans in India. Though it involves high risk, the returns on this plan are also high compared to other investment plans.

Key benefits of Direct Equity include high returns in the long run to fight inflation, liquidity, tax benefits, etc.