In today’s fast-paced world, simply saving money isn’t enough. To secure your future and achieve financial goals, you need to invest your money wisely. Whether you're saving for retirement, your child’s education, or just aiming to grow your wealth, choosing the right investment plans is crucial.
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Investment Plans
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under
10(10D))
Saving money might help you survive, but investing helps you thrive. Here’s why investing is a necessity:
Beat inflation:
Money loses value over time. Investing helps your wealth grow faster than inflation.
Achieve goals:
Be it buying a home, securing your child’s future with a child plan, or building a retirement corpus, investing makes it possible.
Create wealth:
Compound interest and long-term investments can help build sustainable wealth.
Enjoy tax benefits:
Certain investments like ULIP plans, pension plans, and best SIP plans offer tax deductions under Section 80C.
Factors to Consider Before Investing
Before diving into the best investment plan for you, here are a few things to consider:
Financial Goals:
Define your short-term and long-term goals.
Risk Appetite:
Understand how much risk you can take.
Investment Horizon:
Determine how long you want to stay invested.
Liquidity Needs:
Check how easily you can access your money in emergencies.
Tax Implications:
Evaluate how much tax you’ll save or need to pay.
Best Investment Options in India
When it comes to investment plans, India offers a diverse range that is suitable for beginners as well as seasoned investors. Here are the best investment options available today:
Fixed Deposits (FDs)
Fixed Deposits are one of the most popular and safest investment choices in India. Offered by banks and NBFCs, FDs provide guaranteed returns at a fixed interest rate.
Key Benefits:
Capital protection
Fixed returns
Suitable for risk-averse investors
FDs are a good fit for those seeking a short term investment plan with assured returns.
Systematic Investment Plans (SIPs)
SIPs are a disciplined way to invest in mutual funds. With the best SIP plans, you can start small and grow your wealth gradually.
Key Benefits:
Rupee cost averaging
Compounding benefits
Flexible investment amounts
SIPs can be part of both short term investment plans and long term investment options, depending on the fund you choose.
Unit Linked Insurance Plans (ULIPs)
ULIP plans combine investment and insurance. A part of your premium goes into life cover, and the rest is invested in equity, debt, or balanced funds.
Key Benefits:
Dual benefits of insurance and investment
Tax benefits under Section 80C
Flexibility to switch funds
ULIPs are ideal for long-term wealth creation and financial protection.
Public Provident Fund (PPF)
PPF is a government-backed long-term savings plan offering attractive interest rates and tax benefits.
Key Benefits:
Interest is tax-free
Safe and stable returns
Lock-in period of 15 years
It’s one of the best investment options for risk-averse, long-term investors.
Child Investment Plans
Child plans are designed to secure your child's future education, marriage, and other financial needs.
Key Benefits:
Provides life cover and maturity benefit
Helps build a financial cushion for your child’s future
Partial withdrawals allowed in some plans
It’s among the most purposeful investment plans for parents looking for financial assurance for their children.
National Pension Scheme (NPS)
The pension plan under NPS is a government-regulated, market-linked retirement option. It offers regular income after retirement.
Key Benefits:
Tax benefits under Section 80CCD
Low-cost structure
Choice of asset allocation
This is one of the best investment plans for those focusing on retirement and long-term goals.
Mutual Funds
Mutual funds pool money from various investors to invest in equity, debt, or hybrid securities and are considered the best option for retirement planning.
Types:
Equity Mutual Funds
Debt Mutual Funds
Hybrid Funds
Mutual funds are highly flexible and can cater to both short term investment plans and long term investment options.
Real Estate
Investing in property can provide rental income and capital appreciation. While not liquid, it offers substantial returns in the long term.
Key Benefits:
Tangible asset
Dual income: rental + resale
Hedge against inflation
Ideal for those looking for long-term capital growth and diversification.
Gold
Gold has always been a trusted investment avenue in India. Today, you can invest in physical gold, ETFs, or sovereign gold bonds.
Key Benefits:
Acts as a hedge against inflation
Highly liquid
Easy to start with small amounts
It works well in both short term investment plans and as a part of a diversified portfolio.
How to Choose the Best Investment Plan?
The best investment plan is subjective and should match your financial profile. Here’s how to choose:
Consider ULIP plans, best SIP plans, and balanced mutual funds
For high-risk takers:
Equity mutual funds, direct stock investments, or real estate can be rewarding
For goal-specific investing:
Opt for a child plan for your child’s education or a pension plan for retirement
Short Term Investment Plans
Short-term investing is great for building emergency funds or achieving near-term goals (within 1–3 years). Consider these:
Fixed deposits
Liquid mutual funds
Recurring deposits
Short-term debt funds
They offer moderate returns with high liquidity and low risk.
Long Term Investment Options
If you're looking to build wealth over time (5+ years), explore:
PPF
ULIPs
Equity mutual funds via SIPs
National Pension Scheme
Real estate
These long term investment options provide the power of compounding and capital growth.
Tax-Saving Investment Ideas
Here are some investments that offer tax deductions under Section 80C and beyond:
ULIP plans
Best SIP plans (ELSS category)
Pension plans like NPS
PPF
Life insurance policies
Tax-saving fixed deposits
These not only grow your money but also help reduce your tax liability.
Conclusion
Choosing the right investment plans can set you on the path to financial freedom. Whether it’s a short term investment plan for a vacation or long term investment options for retirement, India offers a wide range of instruments to match every goal and risk appetite. Start with a clear plan, diversify your investments, and most importantly, stay consistent.
FAQs
What is a short term investment plan, and who should consider it?
A short term investment plan is designed for durations of 1–3 years and includes options like fixed deposits, liquid funds, and recurring deposits. These are ideal for investors looking to park funds temporarily with low risk and high liquidity.
Are ULIP plans a good investment choice?
ULIP plans are a great investment if you're looking for dual benefits of insurance and market-linked returns. They also offer tax savings under Section 80C, and with a 5-year lock-in, they encourage long-term investing habits.
What are the benefits of a child plan?
A child plan helps parents build a financial cushion for their child's future expenses like education or marriage. These plans offer life insurance cover, maturity benefits, and the flexibility to make partial withdrawals when needed.
Which are the best long-term investment options?
Long-term investment options include PPF, NPS, equity mutual funds through SIPs, ULIPs, and real estate. These investments benefit from compounding and can help achieve major financial milestones like retirement or wealth creation.
How do I select the best SIP plans?
To choose the best SIP plans, evaluate your investment goal (wealth creation, retirement, etc.), risk profile, and duration. Look for mutual funds with consistent past performance, a good fund manager, and reasonable expense ratios.
Can I use a pension plan even if I have EPF?
Yes, a pension plan like the National Pension Scheme (NPS) complements your EPF and provides additional retirement income. It also offers tax benefits under Section 80CCD, making it a smart addition to your retirement portfolio.
Are fixed deposits still a good investment in 2025?
Yes, Fixed Deposits remain a popular and reliable investment option in 2025, especially for conservative investors. While returns are modest compared to market-linked products, they offer capital safety and fixed interest, perfect for short term investment plans or emergency funds.
˜Top plans are based on annualized premium, for bookings made through https://www.policybazaar.com in FY 25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
Past 10 Years' annualised returns as on 01-08-2025
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
Generate wealth Earn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
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