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Investment Plan

Investment planning is a significant part of financial planning. When we talk about investment planning or the right investment plans to invest, three words come to mind - intimidating, overwhelming, and scary. For a ‘regular Joe’ this question seems perpetual.

Everyone wants to invest so that they can gain maximum financial returns without the risk of losing money. In this day and age, investing in the right investment plan is important because earning money is not sufficient to fulfil the financial goals of life. It is important to make money grow. Just keeping your money ideally in the bank account is an opportunity lost.

For different stages of life, one needs funds. One has to build the financial corpus - be it a child’s marriage or education, or for the retirement savings. While seeking different ways to build this financial corpus, people always tend to look out better investment plans which offer higher returns. Due to several investment options, there’s no simple and easy solution to it. However, the ease of different investment plans offered by various life insurance providers is one of the reasonable options available.

What is Investment Plan?

Investment plans are financial products that provide an opportunity to create wealth for the future and meet the financial goals by investing periodically in different investment plans, funds, and schemes. Investment plans also help to inculcate the habit of disciplined investment among investors so that they can accumulate wealth in the long-term and achieve their future financial objectives. 

Best Investment Plans in India to Invest in 2020

Here is the list of top investment plans in India, which you can consider investing in savings for your future financial goals.

Investment Plans Plan Type Entry Age Maximum Maturity Age Policy Term Fund Options
Aegon iInvest ULIP 7 - 55 years 70 years 10/ 15/ 20/ 25 years 5
Aviva iGrowth Unit-Linked life Insurance plan 18- 50 years 60 years 10, 15, or 20 years 3
Bajaj Future Gain ULIP 1 - 60 years 70 years 10 - 25 years 7
Bharti AXA eFuture Invest ULIP 18 - 60 years 70 years 10 years 6
Bajaj Allianz Fortune Gain ULIP 1 - 63 years 70 years 7 - 30 years 7
Bajaj Allianz Retire Rich Unit-Linked pension plan 30 - 73 years 80 years 7 - 30 years 3
Canara HSBC Smart Monthly Income Plan ULIP Plan 18-50 years N/A 5 - 30 years 7
Edelweiss Tokio Guaranteed Income Plan ULIP Plan 0-60 years years 70 years 5-25  years 7
Exide Life Weath Maxima ULIP plan 0-65 years 75 years 10, 15-20  years 6
Future Generali Easy Invest Online Plan ULIP 0-60 years 18-70 year 10-20 years 5
HDFC Life Click2invest ULIP 30 days - 65 years 75 years 5 - 20 years 8
HDFC SL YoungStar Super Premium Unit-Linked child plan 18 - 55/65 years 65/75 years 10 - 20 years 4
ICICI Pru Smart Life ULIP 20-54 years 20-64 years 10 - 25 years 8
IDBI Federal Smart Growth Plan ULIP 30 days-55 years 70 years 10, 15,20-25 years 6
India First Smart Save Plan ULIP 5-65 years 75 years 10-70 years 4
Kotak Invest Maxima ULIP 0-65 years 75 years 10,15,20,25-30 years 5
PNB Metlife Money Back Plan Money Back Plan 13-55 years 65 years 10 years N/A
SBI Life- Smart Scholar Unit-linked child plan 18-57 years (for proposer) 0- 17 years (for child) 65 years 8-25 years minus child's age at entry 7
SBI eWealth ULIP 18 - 50 years 60 years 10 - 30 years (both inclusive) 4
TATA AIA Wealth Maxima ULIP 30days-60  years 100 years 100 minus(-) age at entry 11
See More Plans
Disclaimer: “Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.”

Some of these best investment plans in India enables us to invest our hard-earned money in various money market products in a systematic way to achieve financial objectives. Investment plans offer the mich needed benefit of maximizing the savings through long-term disciplined investment and wealth creation for the future. The primary step towards having an investment plan is to access the financial needs and risk profile and then choose an appropriate plan. Some of the top investment options in India include.

  • Unit Linked Investment Plans (ULIPs)
  • Public Provident Fund
  • Monthly Income Plan
  • Mutual Funds
  • Senior Citizen Savings Scheme
  • Sukanya Samriddhi Yojana
  • Tax Savings Fixed Deposits

Types of Investment Plan

Before making any investment make sure that you do proper research and choose the investment plan, which offers long-term sustainable returns, capital appreciation, and tax-saving benefits. It is paramount to consider the risk associated with the investment before choosing the best investment plan with high return. In an investment plan, the risk can be evaluated as the probability or possibility of the asset either going into a loss or performing below expectations. Based on the risk factor, here we have categorized different investment plans.

  • Low-risk Investment

    Investors with a low-risk appetite who wants less or no volatility in the investment portfolio choose to invest in low-risk investment options. These investment plans tend to provide a reliable and stable growth of capital with minimum losses or minimum risk involved. Even though these investments usually offer guaranteed returns, the investors may need to lock-in their investment for the long-term to earn a substantial return. Let’s take a look at some of the best low-risk investment options.

    • Public Provident Fund: The Public Provident Fund is another investment avenue, which is preferred and opulent choice for most of the investors. The highlight of a PPF is that it has a tenure of 15 years, and the effect of the tax-free interest quiet big specifically in the coming years. Now, as the sovereign guarantee backs the principal investment and eared interest therefore investing in a PPF is safe. Moreover, the interest rate on the PPF is generally reviewed at every quarter by the government.
    • Senior Citizen Savings Scheme: A Senior Citizen Savings Scheme is surely the preferred choice of almost every retiree and an investment plan, which is on every retiree’s investment portfolio. It is a scheme specifically designed for the senior citizens and can easily be availed from any of the banks or the post offices for anyone who is 60 years of age and above. The scheme is available for 5 years, which can also be extended for up to 3 years only when the same gets matured.

      Besides, one can easily open more than one account and Rs 15 lakh is the limit for upper investment. When it comes to the interest rate it is completely taxable and paid on a quarterly base on the premise of the revisions and subject to review. However, if once the investment has been done in the scheme the rate of interest will be the same until the scheme matures. The senior citizen can also claim Rs 50,000 as claim deduction in one financial year within section 80TTB with the earned interest from the scheme.
    • National Pension Scheme: Next, the investment option is the National Pension Scheme, which truly focuses upon the long-term retirement and is duly managed through the Pension Fund Regulatory and Development Authority. Earlier the minimal yearly contribution towards an NPS for a tier-1 account was Rs 6,000, which has been changed and currently is Rs 1,000 for the account to remain active. It is an amalgamation of liquid funds, corporate bonds, government funds, fixed deposits, and others. On the premise of the risk appetite, the investor can likely decide the amount of money that should be invested in the NIP via NPS.
    • Pradhan Mantri Vaya Vandan Yojana: The Pradhan Mantri Vaya Vandan Yojana has been specifically designed for the senior citizens who are 60 years of age and above as that they can be provided with an assured return every year of 7.4%. This scheme provides the income of pension, which is payable easily on an annual, half-annually, quarterly, and monthly as opted. The maximum amount of the pension is Rs 9,250 and the minimum amount is Rs 1,000 each month.
       
      The amount that can be invested in the scheme can go up to a maximum of Rs 15 lakh and the period of the scheme are 10 years. The invested sum is payable to the senior citizen at the time of maturity, however, in case, the senior citizen passes away, the sum will be paid to the beneficiary/ nominee. This scheme is accessible until 2023, March 31.
    • Bank Fixed Deposits: Investing in a bank fixed deposit is always a secured and the most preferred choice for the investors in India. From February 04, 2020, the depositor of a bank will be insured up to a sum of Rs 5 lakh maximum for the principal and the amount of interest within the rules of DIGC. Before, the coverage was Rs 1 lakh for the principal and the amount of interest. As per the requirement, one could opt for the tenure that could vary from month to month, quarterly, annually or cumulative interest alternative in them. Now, the earned interest rate will be added to the income, which is taxable as per the tax slab.
    • Gold: Having gold as adornments have its interests, for example, wellbeing and significant expense. Moreover, making charges is applicable, which is regularly extended between 6-14 % of the price of gold, which can easily move as high as 25% if there should arise an occurrence of extraordinary structures. For the individuals who might need to purchase gold coins, there's as yet a choice. Numerous banks sell gold coins these days. A substitute method of claiming gold is employing paper gold. Interest in paper gold is more practical and should be possible through gold ETFs. Such a venture (purchasing and selling) occurs on the stock trade that is BSE or NSE with gold as the basic resource. Putting resources into Sovereign Gold Bonds is the other alternative to claim paper-gold. A speculator can likewise contribute through mutual funds of gold.
    • Sukanya Samriddhi Yojana: This plan is specifically developed to secure the financial future of the girl child. Since its launch, the plan has gained huge popularity as one of the best investment plans in India for the girl child. As a government-backed investment option, this scheme offers safe and guaranteed returns to the investors. The SSY has a tenure of 21years or until the marriage of the girl child after 18 years of age. The current interest rate offered by the scheme is 7.6% compounded annually. From the perspective of tax benefit, SSY is designed as an exempt, exempt, exempt (EEE) investment. This means that the contribution made towards the scheme, the interest earned on the contributed amount, and maturity proceeds are all tax exempted under the applicable sections of the Income Tax Act.
    • RBI Taxable Bonds: Some time back the Reserve Bank of India used to raise 7.75 % savings bonds that were taxable as an investment avenue. However, from May 29, 2020, the Central bank stopped the issuance of such bonds. These securities were propelled by supplanting the recent 8 % Savings (Taxable) Bonds 2003 with the 7.75 % Savings (Taxable) Bonds with impact from January 10, 2018. These bonds had a period of 7 years. The Central Bank with impact from July 1, 2020, has propelled Floating Rate Savings Bond, 2020 (Taxable).

      The greatest contrast between prior 7.75% reserve funds securities and recently propelled gliding rate security is that the loan cost on the recently propelled investment funds security is liable to reset in at regular intervals. In the 7.75% securities, the financing cost was fixed for the whole span of the venture. Right now, the securities are offering a financing cost of 7.15%. The principal reset on the loan cost is expected on January 1, 2021.
  • High-Risk Investment

    High-risk investment plans are suitable for investors who have a high-risk appetite and whose main focus is to have long-term capital growth. Mostly high-risk investment plans include substantial fluctuations, however, the chances to create a huge possible return in the long-term are also very high. Let’s take a look at the high-risk investment plans available in the market.

    • Debt Mutual Funds: Any investor who wishes for study returns should consider investing in debt mutual funds. When compared to equity funds it is less volatile, which means that the risk is less. Moreover, debt mutual funds essentially invest in securities that will generate fixed interest such as treasury bills, corporate bonds, commercial paper, government securities, and money market tools. However, this does not mean that it is risk-free; it has certain risk factors such as the credit and interest rate risk. Therefore, a detailed study is a must before an investor makes his mind for the investment.
    • Direct Equity: Well, when it comes to investing in stocks, it might not just be a preferred choice of the individuals so easily. Besides, investing in a stock is an art and you need to be good at picking up the right stock. Likewise, ten timing is yet another important aspect when it comes to investing in stocks. On the brighter side in regards to the long-term, equity delivers high when compared to other classes of assets that are inflation-adjusted. Likewise, the chances of losing all the capital are slight on a higher side until the investor goes for the method of stop-loss so that the loss can be curtailed. Under stop-loss, to sell order at a certain cost an advance order is placed. And to a certain extent, the risk is reduced so that one can diversify in all sectors and capitalizations of the market. In case one wishes to invest in direct equity, a Demat account is a must besides the bank permits the 3 in 1 account opening.
    • Equity Mutual Funds: As for equity mutual funds, the investment is predominantly done in equity stocks. With the present mutual fund regulations and Securities and Exchange Board of India (SEBI), when it comes to a scheme based on equity mutual fund, it is important that the investor holds 60 % of the assets in regards to the equity and likewise equity-related tools. The equity mutual fund can be managed both passively and actively. When it comes to a traded fund that is active, the returns essentially depend upon the manger of the funds' ability to generate the returns. The equity schemes are segregated on the premise of the capitalization of the marker or even the areas where one wishes to invest. Moreover, it is also segmented on the premise wherein the stocks are invested in Indian companies that are domestic or the investment is done in the stocks of overseas companies that are international.
    • Unit Linked Investment Plans (ULIPs):

      Unit Linked Plan,  commonly referred to as ULIP, is a type of investment plan that provides coverage wherein the money paid as premium by the investor is channelized into the stock markets. Each ULIP has a different set of funds that they invest in. Individuals who invest in the best investment plans get a certain number of units of the fund. These investments are based on the correlation of the fund value of the fund they are investing in and the premium the investors have put in.

      New age ULIPs, also called 4G ULIPs offer more flexibility in comparison to the traditional ULIPs, and at a relatively lesser cost. Moreover, the exemption of the LTCG tax in the Union Budget 2018 made ULIPs even more popular. 4G ULIP plans have low charges and almost zero charges.

      The Unit Linked Insurance Plans are amongst the best investment plans option in India in case you are looking for some coverage cum investment options. The ULIP plans give both financial security and life coverage. And one of the best investment plans, ULIPs also gives you the leverage to make direct market investments. ULIPs funds can be invested into equity funds or debt funds or both parts. The value of the debt fund or the equity fund is evaluated as Net Asset Value the criteria.
  • Medium Risk Investment

    Moderate or medium risk investment includes investment plans that offer balanced and diversified investment. Medium risk investment plans not only provide an opportunity for growth but also take care of the market volatility up to a certain level. Medium risk investment plans mostly to diversify the investment portfolio of the investors through a mix of debt and equity securities to create a stable return with the moderate risk involved. Some of the common medium risk investment plans are.

    • Monthly Income Plans
    • Hybrid-Debt Oriented Funds
    • Arbitrage Funds

Benefits of Investment Plans

There are many benefits of incorporating investment plans in your financial portfolio. Here we have explained some of these benefits elaborately.

  • Protection to Loved ones

    Return on investments with coverage provides the dual benefit of life cover and returns. This means that if anything unfortunate happens to the insured, his/her family will receive the sum for which they were insured in addition to the fund value either as a single or in the form of monthly/quarterly/half-yearly payments. These returns help to secure the family's needs and monetary goals if they are unable to earn a living or in the unfortunate demise of the breadwinner of the family.

  • Goal-based Planning

    A goal-based investment plan is a great way for saving money for a goal - whether it is buying a house or a car, paying for children's education costs, or planning for marriage or after you retire. Investment plans which come with a long-term lock-in period help the investors to fulfill the financial goals in the long-term like a child’s marriage creating a retirement fund, etc. The ULIP plans offer alternative opportunities to invest and the investor can take a look at their historical profits to calculate his/her returns and builds financial corpus in a few years.

  • Wealth Creation

    Along with proper savings, investing in the right investment options is the best way to multiply your stagnant funds. An investment plan provides you an excellent opportunity to create wealth in the long-term by making a disciplined and periodic investment.  By gaining high returns on investment you can make your money grow with time and create a financial cushion for your loved ones.

  • Tax Benefits

    Investment plans like PPF, ULIP, ELSS, Sukanya Samriddhi Yojana, etc. not only provides an opportunity to accumulate wealth in the long-term but also offers substantial tax-saving benefits U/S80C and 10(10D) of the Income Tax Act.

  • Flexibility

    With an extensive range of investment plans available in the market today, the investors have the flexibility to choose the investment option as per their financial goals, tenure, and risk appetite.

Objectives of Investment Plans

There are various investment objectives for different investors. Here are some of the common objectives of investment plans:

  • Safety

    Every investor seeks safety while investing and safety is one of the prime objectives. There are some investment plans in the form of ULIP that offer guaranteed return possibility.

  • Income

    After safety, comes income. The safest investment plans are the ones that are likely to have a lower yield or rate of income return. The investors should inevitably take risks and sacrifice a certain degree of safety in order to earn better returns. As the returns increases, so does the peril.

  • Tax Minimization

    The investors might pursue some investments so as to leverage tax minimization as a part of their investment strategy. An investor’s another key investment objective is tax saving. The investor can avail tax benefits under section 80C and section 10(10D) of the Income Tax Act, 1961.

How to Choose the Investment Plan?

You can keep these points in mind to choose the best investment plans in India.

Some of these best investment plans in India enables us to invest our hard-earned money in various money market products in a systematic way to achieve financial objectives. Investment plans offer the mich needed benefit of maximizing the savings through long-term disciplined investment and wealth creation for the future. The primary step towards having an investment plan is to access the financial needs and risk profile and then choose an appropriate plan. Some of the top investment options in India include.

  • Access your financial goals and requirements.
  • Create a strong strategy by incorporating the right investment plan plus the right insurance that brings into line with your goals.
  • Evaluate your investment tenure to achieve each goal.
  • Go through various charges applicable to different investment plans.
  • Create a diversified portfolio. This means that instead of investing in a particular investment plan invest in a mix of insurance plans and multiple investment plans.
  • Periodically review your investment plans.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Things to Check before Choosing Investment Plans

There are certain factors to be kept in mind while choosing an investment plan. They are:

  • Goals

    The monetary goals of the investor should determine what type of scheme they should buy. These goals may include marriage, buying a house, or a car, providing for children's education and marriage, or building a corpus amount. Even small-term goals such as foreign trips can be financed by ULIPs. If an investor has just started with his/her career or have a small family, then s/he can opt for the insurance cum investment plan such as a ULIP to fund his/her short-term goals. On the other hand, if the investor is in his/her 40s or even 50s, then endowment plans are better as best saving schemes in combination with ULIPs or other options like a mutual fund. The monetary goals of the investor will help him/her to determine the best investment plans options for him/her to invest in.

  • Current Expenses vs. Savings

    To meet the financial goals the amount an investor spends in an investment plan or saves has a larger role to play. With less saving and more expenses, it is unlikely that s/he can define large short-term goals that can be met by coverage plans. In such a scenario, if the investor lives at home with his/her parents and has no major outgo like rent, and s/he is likely to save money every month then it is best to buy an adequate life cover with return benefits and get their two-in-one benefit.

  • Future Expenses vs. Savings

    The amount saved for the future will also determine what kind of investment plan works as the best for the investor. If the investor has fewer expenses now because the children are young, s/he can plan for the major expenses that will come his/her way in a few years like the children's college education or marriage. Therefore, s/he can choose an option that charges a premium for a few years and then pays out enough that it can itself pay for any premium from the annuity or other regular benefits. Moreover, the investor investing a higher amount would now mean that a good profit plan will grow to a larger capital base in 20-30 years when s/he needs it for his/her monetary goals or basic expenses. Planning his/her expenses is a good way to filter the ones to invest in.

  • Major Expenses that may arise

    These schemes are a smart way to get the cover an investor needs and also grows his/her fund at the same time through the best saving schemes. The major expenses like buying a house or to meet the living expenses after the investor retires can be easily covered by ULIPs and even endowment plans. Also, s/he can plan for the major expenses that are certain to occur and take them into account while determining the best saving scheme. For example, suppose the investor’s child is in primary school, then s/he knows that within 8-10 years s/he will have to bear major expenses for their education. As such, it makes sense to invest in a Child ULIP plan that ensures s/he can meet this definite expense in a few years. Moreover, Child ULIP has a special feature known as Waiver of Premium option.

  • Insurance Cover - Existing vs. Required

    The insurance cover offered by the insurance policy or the returns offered by the investment plans should be adequate to take care of the investor and his/her family in case s/he is unable to work anymore or in the unfortunate event of him/her demise. The cover provided by the product should be able to pay for him/her or his/her family's expenses in the years to come until his/her children can take care of him/her and his/her spouse in addition to themselves. To understand how much the investor needs, s/her must estimate his/her current and future expenses vis-a-vis what a scheme offers. If the investor’s cover is less than what is required, then opting for ULIPs or endowments as best saving schemes are a better way to ensure s/he increases his/her money while protecting him/her and his/her family at the same time.

  • Number of Dependents

    The number of dependents should also determine the assured sum the investor needs to invest in the best investment plan. If the investor has only a wife and child as dependents then his/her needs would be lesser in comparison to when s/he may be taking care of his/her siblings, parents, parents-in-law, grandparents, nephews, nieces, etc. The investor’s monetary insurance product should not only be able to cover for all the necessary expenses but also help him/her build a financial corpus for all the major goals of his/her family and himself/herself. Moreover, the age of the younger dependents matters while choosing the best investment plans. If s/he has teenage children, then it is likely s/he needs a good plan to save up for their college education or marriage. ULIPs investment plans are better for such cases than endowment plans.

Best Investment Plan for 1 Year

If the investors are investing only for the tenure of 1 year, then they have an extremely short-term investment horizon. Thus considering the market volatility it is advised not to invest in equity options. If you want to invest for a tenure of 12 months, then you can consider investing in some of these best investment plans for 1 year.

1 Years Investment Plans Ideal for
Arbitrage Funds Suitable for investors, looking for 1 year or more than 1-year investment. Offers 8% interest
Fixed Deposits Suitable for investors, looking for a 1-year investment. Offers around 6.5 returns.
Recurring Deposits  Suitable for investors who invests monthly
Fixed Maturity Plan Includes diverse constant earning instruments
Post Office Deposits Investors can invest for a tenure of 1, 2, 3 %5 years
Debt Fund Suitable for investors, looking for everyday profit.

Best Investment Plan for 3 Year

Investment plans for 3 years come under short-term investment options. These plans are best suitable for investors who want to gain high returns within a short tenure. Let’s take a look at the short term investment plan for 3 years.

3 Years Investment Plans Ideal for
Recurring Deposits  Suitable for investors who invests monthly
Fixed Maturity Plan Same as FDs with 3 years lock-in period
Savings Account Suitable for investors, looking for liquidity (4%-7% returns)
Arbitrage Funds Suitable for investors, looking for more than 1-year investment. Offers 8% interest
Liquid Fund Suitable for investors, looking for secured investment (4%-7% returns)

Best Investment Plan for 5 Year

Investing for a tenure of 5 years is generally included in the short-term low-risk investment options.  By investing in the investment plans for 5 years the probability to gain higher returns are more as compared to 3 years or 1-year investment. Let’s take a look at the best investment plans for 5 years.

5 Years Investment Plans Ideal for
Liquid Funds   Suitable for investors who want to invest for 3-5 years' tenure. Offers a 7% interest rate.
Savings Account Suitable for investors, looking for liquidity (4%-7% returns)
Post-office Time Deposit Suitable for investors, looking for high liquidity and investment for 1-5 years. The applicable rate of interest is 7%
Large Cap Mutual Fund Offers smart returns of 8%-13% to the investors for 3-5 years of tenure.

Why Should You Invest?

Whether you are a self-employed or a salaried individual, it is important to keep in mind that with the growing inflation rate it is almost impossible to achieve your financial goals with only savings. It is imperative to multiply your savings and accumulate wealth through investment in a lucrative investment plan. To create a strong financial cushion, the investors should invest in the best investment plans with higher returns.

Even though investment plans include the risk of losing money the potential to gain returns is much higher. Thus,  to create a strong financial portfolio and to secure the financial future of your loved ones, it is vital that you invest in the right investment plan.

When in the Right Time to Start Investing in An Investment Plan?

Every individual has their own set of financial goals that they want to achieve within a specific tenure. However, in this day and age, we cannot depend on the savings only to achieve these goals. It is through smart investment planning we can create a strong financial portfolio to reach these goals.

To achieve financial objectives like purchasing a house or financially securing your retirement future, you must invest in investment plans that help to multiply your money over a specific tenure. Thus,  it is important that you set a tentative timeline in which you want to achieve these goals before investing. The earlier you will start investing in the future, the more time you will get to create the financial corpus. Moreover, you will be able to overcome the market risks and gain high returns in the long-term. Keep in mind that once you set a goal in mind and choose the right investment plans to invest in,  you will be able to streamline the investment process without any burden.

Documents Required to Purchase Investment Plans

Certain documents should be kept handy while investing in an investment plan. The investors are required to provide these documents as proof of KYC.

Income Proof Address Proof Age Proof Identity Proof
For Salaried Individuals For Self Employed Voter ID Pan Card Aadhaar Card
Form 16 of the latest year. Form 26 AS Aadhaar Card Aadhaar Card Pan Card
Last 3 months bank statement showing salary credit. Income tax returns of the latest 2 years are not filed in the same year along with income calculation. Passport Passport Voter ID
Income tax return for the last 2 years. In case income computation is not available: ITR of the latest 3 years not filed in the same year. National Population Register containing details of address, name, and aadhaar number. Municipal Birth Certificate Passport
profit loss account and CA (certified audited) balance sheet for the latest 2 years. Or any other document issued by the central government. Voter ID

FAQs

  • Where should a beginner invest in?

    Ans: A beginner can invest in the following investment instruments: Mutual funds with low-initial-investment Enroll in the retirement plan of the employer Invest in bonds or fixed income plans Investing in real estate Before investing in these instruments, it is suggested to understand well about them.
  • How can I get my investment return higher?

    Ans: The top investments with high returns are: Direct Equity Equity Funds: Small and Mid Cap Plans Initial Public Offering Equity Linked Savings Scheme Peer - to - peer platforms Real Estate.
  • How do I start learning about investment?

    Ans: The steps to learning investment are given below: Step 1: Get Finances in Order: Before jumping into an investment, it is suggested to first analyze your finances and get them sorted. Step 2: Know the Basics of Investment: It does not require any special skills to start investment; however, it is suggested to learn some basic terminologies of this field. Knowing the terms of investment help you to take an informed decision. Step 3: Set the Goals: After understanding your investment budget and after learning about the basics, the next step is to set your goals. Having a goal helps you to take the most suitable decision about investment. Step 4: Understand Your Risk Tolerance: Would a small loss of money via investment make you weak? Would you be able to bear some loss of your invested money without much effect? These are some of the questions that you can ask yourself in order to access your risk tolerance. Since investment can be risky as well as advantageous. Moreover, the investment with more risk offers more benefits in contrast with the investments that are of low risk. In this way, select your risk appetite accordingly. Step 5: Get to Know Your Investment Style: As you know and understand your investment goals and risk tolerance power, it is time for you to know your investment style. For example, if you are an aggressive investor, then you will like to invest your money in equities. So, find an investment style that best suits you. Step 6: Know the Investment Cost: It is important to know the investment cost. This is because some investment cost cut down the return of the investment. Step 7: You Can Take the Help of an Advisor or Broker: The type of the broker needed by you depends on the amount of time that you are willing to give to your investment as well as your risk tolerance. However, before choosing a financial advisor, it is suggested to know his/her reputation in the market and his/her performance. Step 8: Select Investment Type: Now this step is interesting because here you choose your investment type. However, it depends on the above factors, but if you are a conservative investor, then you should go for low-risk investment options like money market funds. Step 9: Keep the Emotions Far Away: Never let the greed or fear inflate the losses or limit the returns. It is suggested to keep your emotions far away from your investment. Step 10: Review Your Portfolio and Adjust Accordingly: The final step in the investment journey is to review your investment portfolio from time to time. This is because after some time you may want to rebalance your investment in order to get the best returns.
  • Q: How can I invest money to make money fast?

    Ans: There are five ways in which you can double your investment: Earning Money Slowly or Classic Method: Under this investment method, the money is invested in the non-speculative and solid portfolio. The Safe Method: Investing in bonds is one of the safest ways of investment. The Contrarian Method: This is the method wherein you buy when everyone is getting out of the investment plan. The Speculative Method: The investment in the stock market comes under this category.
  • Q: Where should I invest my money in?

    Ans: There are plenty of options where you can invest your money, these options are: Stock Market: The most known and probably the most beneficial area to invest your money is in the stock market. Basically, a stock of a company means its small portion. When you buy stock, you, in other words, buy a small portion of that company. When the company gets profit, it may pay you some part of that profit in the form of dividend or the portion of stock share you own. Mutual Funds: Instead of purchasing a single stock of a company, it is suggested to purchase mutual funds. Mutual funds provide many stocks under one purchase. Investment Bonds: Purchasing bonds means loaning money to the government or the company. The company or government selling the bonds pays interest over the loan throughout the cycle of the bond. Generally, the bonds are considered less risky than stocks. However, their returns are much lesser than stocks. Physical Commodities: The commodities that you physically have like silver or gold are considered as physical commodities. The physical commodities are considered safeguards at the time of financial crisis. Savings Account: One of the safest ways to safeguard your money from any market risks is to put it in the savings account and let it gain interest. However, as mentioned earlier, low-risk investments give low risk. Still, savings accounts are considered as one of the best and safest ways of saving and investing money.
  • Q: How can I double my money in five years?

    Ans: Some of the ways to double your money in five years are: Kisan Vikas Patra Tax-Free Bonds Non-Convertible Debentures or Corporate Deposits Bank Fixed Deposits National Savings Certificate Mutual Funds Public Provident Fund Stock Market Gold EFTs
  • Q: Where can I invest my money safely?

    Ans: The investments in which you can invest your money with low risk are: Bank Savings Account Money Market Funds Corporate Bonds Reward Checking Accounts Public Provident Fund National Pension Scheme Fixed Deposits in Bank Real Estate Senior Citizen Savings Scheme Gold
  • Q: Is purchasing gold a good investment?

    Ans: Purchasing gold is never considered a very safe investment option and it is not wise to invest in gold. However, as gold is considered a store of wealth, you cannot dismiss to agree that it has to be one of the investment options, but you should not consider it as the only investment option.
  • Q: How can I save money from my salary?

    Ans: Mentioned below are the tips to save money from your salary: Make a monthly budget and start saving some money Understand your financial goals Start investing in the right investment instrument Maximize your tax savings Get the right insurance plans – such as health insurance, life insurance, accidental disability insurance plans, critical illness plan, etc. These are some top tips to save money from your salary. However, there are some other tips as well as reducing your monthly bills, spending less on entertainment, etc.
  • Q: How can I start investing in my 20s?

    Ans: In your 20s, you do not have much responsibility, so you can start investing in a major part of your salary without much effect. Here are a few tips for the same: Start building emergency funds Start investing in your employer’s retirement plan Understand the basic goals of your investment Take your own retirement plan Take the help of a financial advisor Keep your short term savings plans easily accessible
  • Q: How much should I have in my savings at the age of 25?

    Ans: The rough estimate of your savings at the age of 25 years is 0.5X of your annual expenses.
  • Q: How much a 30-year-old should save?

    Ans: By the age of 30 years, you should at least have saved equivalent to your annual salary.
  • Q: How much money do I need to retire at the age of 55?

    Ans: Those who want to quit their jobs at the age of 55, then you need to have at least 18 times your annual income.

Latest News

  • Why Should You Invest?

    At present, just earning money is not sufficient, as the money one earns may not be adequate enough to fulfill the financial goals of life. Thus, it is very important to make an investment. The savings lying ideal in the bank account is an opportunity lost. Therefore, one should invest the money smartly in various investment plans in order to receive profitable returns out of it. By choosing the best investment plan, one can gain maximum returns on investment over a long-term period and can accumulate wealth to fulfill the major objectives of life.

  • What is the Difference Between Saving and Investing? 

    Savings and investment are often used interchangeably, however, both are different. Savings accounts are basically no-risk accounts. In a savings account, the interest is earned on the money one saves. The returns are guaranteed in a savings account and are more accessible whenever one needs it.  Savings account entitles him/her to save money for a particular purpose within a short-term period.

    On the other hand, investment plans are aimed to create wealth over a long-term period. In investment plans the risks are higher, thus the potential of returns are also higher as compared to the savings account. In investment plans, one’s money is invested in the different assets that have a good probability of generating high returns over a long-term period. While investing in investment plans, it is important to have a diversified portfolio so that s/he can diversify his/her risk and can gain potential returns across a wide range of investment classes.

  • When Should I Start Investing?

    The earlier one starts investing in the investment plans, the more benefit s/he can reap in the long-term. It is advised that the best age to start investing is the age when one starts earning. By investing at an early age one can compound his/her money over time. Moreover, the longer the investor stays invested in the market the higher returns s/he can avail in a long-term period. Not only this, but by making an investment at an early age also helps him/her to deal with the market risk as in long-term s/he can overcome the risks related to the market. Thus, in order to create maximum wealth, it is always advised to start investing in investment plans at an early age.

  • Best Investment Plans/Options

    There are a plethora of options available in the market. Some of the best investment plans available are discussed below:

    Unit Linked Insurance Plan (ULIP)

    As one of the best investment plans in India, Unit-linked Insurance Plans (ULIP) offers the combined benefit of insurance cum investment. Besides this, the ULIP plan also helps one to save on taxes under section 80C and 10(10D) of the Income Tax Act. The lock-in period of ULIP plans is 3-5 years.  In ULIP investment plans half of the premium amount is used to provide the insurance coverage to whereas the rest of the premium amount is invested market-linked instruments such as shares, bonds, etc. in order to gain return of investment. ULIPs have 0% capital gain unlike 10% in mutual funds.

    Mutual Fund Investment

    This is considered as one of the most profitable options of investment plans in India. Mutual funds are market linked investment products in which the investment is made in different assets such as debt, equity, stocks, etc. with an objective to provide higher returns on investment. Even though, mutual fund investments include higher risks the potential of returns is also higher. In the mutual fund investment plan, the ROI totally depends on the market performance of the fund.

    Bank Fixed Deposits

    Bank fixed deposits are guaranteed return investment plans, which offer fixed return over the tenure of investment.  The returns on fixed deposits are payable annually, monthly or quarterly. FDs generally offer two types of investment options cumulative and non-cumulative. As one of the safest investment plans, bank FDs offers an interest rate of 6.05%- 7%.

    National Pension Scheme (NPS)

    National Pension Scheme (NPS) is a government-backed investment plan, which aims to provide pension solution to its investors. In NPS, the investment is made in binds, equity investment alternatives, and government securities according to one’s own requirement and choice. NPS scheme only matures after the completion of 60 years. In this scheme, the accumulated interest is tax-free. Moreover, in case of lump-sum payment after maturity 40% of the amount is tax exempt as per the Income Tax Act of India.

    Public Provident Fund (PPF)

    Public Provident Fund (PPF) is the safest and most secured investment plans available in the market. The returns offered under Public Provident Fund (PPF) entirely tax exempt.  One can open the PPF account in bank or post office and the money gets locked for the tenure of 15 years. Moreover, in this investment plan, one can earn compound interest from this account.

  • Best Investment Plans for College Students

    Depending on the amount one is capable to keep aside for investment a suitable investment plan can be suggested. The safest investment plans for a college student is to invest in Banks Fixed Deposit and Recurring Deposit plan. As in FDs and RDs, the interest rates are fixed throughout the fund tenure and a guaranteed return of investment is paid to the investors.

    Moreover, Banks FD and RD investment can be done for a short-term period. In case one is above 18 years of age and if s/he has a medium risk appetite then s/he can consider investing in mutual funds through the process of SIP.  One can start investing in SIP investment plans with a minimum amount of Rs.500.  This will help his/her to inculcate the habit of savings in a long-term and will also help him/her to accumulate wealth over a long period of time.

  • Best Investment Plans for Senior Citizens

    In order to secure one’s life after retirement, it is very important to make the right investment choice at the right time. Nowadays, there are many different types of investment plans, which are specifically designed to provide financial security to the individual after retirement. 

    Some of the best investment plans to invest for senior citizens are the National Pension Scheme (NPS), Public Provident Fund (PPF), and Senior Citizen Savings Scheme (SCSS). These are government-backed pension plan, which aims to provide financial stability to the individual after retirement.

    Moreover, these plans also offer the benefit of tax exemption. Apart from this, one can also consider investing in investment plans such as Post Office Monthly Income Scheme (POMIS), FDs and Mutual Funds in order to create wealth in a long-term and have a secured life after retirement.

  • Best Investment Plans for Salaried Person

    With the increasing cost of living, it is imperative to make investments. With a wide range of investment plans available in the market, making the right investments decision can always be a little challenging. However, if one’s objective is to generate high returns with the minimum risk involved then s/he can consider investing in long-term best investment plans such as mutual fund scheme, banks FD, ULIP plans, NPS, PPF, SCSS, etc. These plans not only provide a high return on investment over a long-term period but also help him/her to create a financial cushion for the future so that s/he can achieve the financial objectives of life.

  • Eligibility to Buy Investment Plans

    Any residential Indian citizen above the age group of 18 years can invest in various investment plans of their own choice. While making an investment in investment plans the important eligibility criteria that are required to be fulfilled are:

    • Address proof along with the attested photocopy.
    • Photo ID proof along with the attested photocopy.
    • Aadhar Card along with the attested photocopy.
    • Bank Passbook.
    • PAN Card
  • How to Buy Investment Plan Online

    Purchasing the investment plans online is the most beneficial thing to do, as it is hassle-free and saves one from getting into a lot of paperwork. In order to purchase the best investment plans online, one just needs to follow a few simple steps:

    Step 1- Visit the website of the investment plan in which s/he wants to make an investment.

    Step 2- Once s/he logs into the investment page enters the basic information such as income, date of birth, etc.

    Step 3- Enter the preferred policy tenure along with the investment amount.

    Step 4- Choose the additional benefits, if any and click on search.

    Step5- According to one’s preference, s/he will get the listing of all the suitable plans.

    Step 6- Go through the plans carefully and check the terms and conditions, benefits and returns offered by the policy.

    Step 7- Purchase the best investment plans after comparing various plans online.

    It is important to note that while investing in any investment plans, it is important to complete the KYC and keep handy all the important documents mentioned above.

  • How PolicyBazaar Helps You to Choose the Best Investment Plans?

    In order to provide the best to our customers, Policybazaar provides one-stop solution for all the financial needs of the individuals. Consider the extensive range of insurance companies operating in the market and together with their wide range of investment plans, it often becomes of the herculean task to choose the best investment plan for making an investment. Policybazaar aims to bridge this gap and guides the investors through the difficulty of purchasing the most suitable investment plan for themselves and their family.  Let’s take a look at how Policybazaar helps to choose the best investment plan.

    Policybazaar helps you to make a quick and informed decision. At Policybazaar you can compare the costs features benefits and coverage of various plans online and make an informed decision.

    Moreover, you can also check various products available in the market.

    We have a team of experts who provides assistance to the customers 24X7 and guides them and help them to make an informed choice.

    As an online portal, our website enables customers to purchase the product directly from site save you money and time.

  • Tax Saving Investments:How to Save Income Tax

    Apart from generating higher returns on investment, as an investor, one’s investment goal should be to save on taxes and to generate tax-free income.  While choosing the right tax savings best investment plans, it is important to consider the important aspects such as liquidity, safety, and returns.  With an array of investment options available in the market, some of the best tax saving investment plans that not only provides the benefit of tax exemption but also helps him/her to earn tax-free income are:

    • Equity Linked Savings Scheme
    • Public Provident Fund
    • Employee Provident Fund
    • Unit Linked Insurance Plan
    • Traditional Insurance Plan
    • Sukanya Samriddhi Yojana
Updated: 25 September 2020
Written by Vivek Jain
Author | 2 Posts

Vivek Jain, Head of Investments at Policybazaar, has an experience of 8+ years. A post graduate diploma in Computer Management from IIM Calcutta, he in his current role, has been instrumental in driving product innovation in Savings/Investments. He is one of the calmest members of the team with a hidden talent for whistling. Yes, he can whistle a mean tune and is really proud of it!

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Average Rating
(Based on 114 Reviews)
Investment Plans Insurance Reviews & Ratings
4.5 / 5 (Based on 114 Reviews)
(Showing Newest 15 reviews)
Narad
Nirmal, September 15, 2020
Tax benefits
I have got the investment plan policy from the policybazaar for the long term benefits and it also give me the tax benefits too. It gives me the certain amount of rebate under the investment plan. Thanks a lot team.
Nitin
Nasik, September 15, 2020
Safety features and add on covers
I have got the investment plan from the policybazaar and it has given me such brilliant amount of additional features such as add on benefits which can be useful at any time. Thanks a lot team for better services.
Madhuri
Raniganj, September 15, 2020
Better returns
I have got the investment plan policy after thinking for the several times. I really like the plan and it has given me certain benefits which can be best at the time of the longer investments and the savings. Thanks a lot team policybazaar.
Hari
Bongaigaon, September 15, 2020
Future oriented goals
I have got the investment plan and it is the term insurance plan which I have taken from the policybazaar website. It is an amazing and cost-effective plan for me and my family. It will take care of my family at adverse time. Thanks a lot team.
Prem
Chitrakoot, September 15, 2020
Create your wealth
The investment plan which I have purchased from the policybazaar has helped us to create the wealth at the better way so that I and my family can secure our future goals very easily. I am very happy with the services of the policybazaar.
Rajat
Babutola, September 15, 2020
Financial plans
I have recently got the investment plan for myself and my family. It is one of the good plan. It has really helped me to secure my life and also make my money grow for the longer period of time. Thanks to policybazaar.
Swastik
Uttamnagar, September 10, 2020
Compare and choose best
When we get so many varieties in one place then you must always compare it. I did it on the website of the policybazaar and choose one of best investment plan. Thank you policybazaar.
Vinod
Vadali, September 10, 2020
Best investment options
I have got the best investment option from the policybazaar. Thye have given me so many plans options and they all were very good. I feel good and would suggest everyone to get the investment plan. Thank you policybazaar.
Kashish
Sonipat, September 10, 2020
Protect to loved ones
I have made this thing simple and possible by getting the investment plan for the safety and security of my family. If by chance something happens to me then this plan will be beneficial to my family. It will take care of their financial needs. Thank you policybazaar.
Mukul
Ranchi, September 10, 2020
Get discounts
I have got the discounts when I got the investment plan. I am happy that policybazaar team has given me good plan with safety features. It is very much affordable in nature too. That’s the perfect plan of my life.
Fardeen
Beltikiri, September 10, 2020
Make payment online
It is very easy to get the investment plan online and not only that to make the payment online. I made the payment via credit card and it was very much transparent in nature. Thanks to policybazaar.
Sidhu
Chandbali, September 08, 2020
Investment and insurance plan
I have recently got one of the investment plan from the policybazaar and along with that I got the insurance policy too. It will gives me better return and high number of savings. Thank you policybazaar.
Vaibhav
Dangar, September 08, 2020
Flexibility
The investment ULIP plan which I took from the policybazaar is very much flexible in nature. I can easily shift from equity to debt and vice versa. That’s why I choose this plan. Thank you policybazaar.
Vinay
Madurai, September 08, 2020
Online available
I searched for the investment plan on the website of the policybazaar and I got to know about various investment plans but I invested on ULIPs plans as it is more durable and reliable. I found it not so expensive in nature. Thank you policybazaar.
Sachin
Madhuban, September 08, 2020
Safety and security
I really got the safety and security feeling when I got the investment plan from the policybazaar. It is one of the amazing plan which I have got so that I can grow my money into a better way. Policybazaar helped me in settling with best plans.