Are you looking for a one-year investment plan? Or are you among those investors who want to invest their money for one-year-only? Well, if yes, then you should not worry as there are many investment plans for 1 year.There can be many reasons when you want to close your investment plan in just one year such as the marriage of your children or their higher studies.Read more
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For the same, you may want to have enough finances and for such situations, short term investment plans like an investment plan for 1 year come as a rescue. There are many one-time investment plans and today we are going to discuss them:
Listed below are the best investment plan options 2023 that you should consider to invest your hard-earned money:
It is one of the safest one-time investment plans wherein you can invest your money for short-term like for one year. The reason for saying it safest is the banks involved in it. Most of the time people do invest in banks of the government sector, thus their money is kept safe there.
Tenure: With bank FDs, you can make investments for 6, 9, or 12 months or more as different banks offer different lengths of deposits.
Liquidity: Such deposits can be renewed upon maturity and in this way, the amount can be reinvested if there is no immediate need for it. You may select options such as month – to – month, half-yearly, quarterly, yearly, etc for investment.
Returns: As per your requirement, you can opt for a quarterly, month – to – month, yearly, half-yearly, or the cumulative option of investment. Currently, the FD interest rate that banks provide is around 6.5% per annum for a tenure of 12 months and more. This interest rate increases by 0.5% in the case of senior citizens.
Taxation: The interest provided on FD is eligible for a tax deduction. However, it depends on your income and your earning slab.
In this kind of deposit, the investments have to be made in regular intervals for a certain period and with a maturity fee that is a lump sum. Generally, all the banks allow opening a Recurring Deposit (RD) account online.
Tenure: For fulfilling short term goals like wanting to save money to purchase something or gifting a lump sum amount to near and dear one, you can open an RD for one year. Here, you can invest a specific amount every month for twelve months and use it after completion of tenure. You can open an RD for three months as well as for six months.
Liquidity: Generally, the lock-in period in RD is one month. However, if you want to close it within a month, due to any reason, then no interest will be paid to you.
Returns: Most of the time, the rate of interest is the same as the rate of interest of a normal bank FD.
Taxation: The tax is deducted on the interest earned, so if the earned interest is more than Ten Thousand Rupees, then TDS may be deducted.
Deposits made in Post Office are considered as one of the safest investment options.
Tenure: You can put your money in Post Office for one, two, three, and five years. In the case of the fast term, you can put your money for one year only.
Liquidity: The interests are given annually and the premature withdrawal is allowed after completion of six months.
Returns: The returns in these schemes are fixed. For a short-term plan like an investment plan for one year, you can make deposits for one to 12 months wherein the interest is paid yearly, however, it is calculated quarterly. Currently, the interest of Post Office deposits is 6.6% to 7.4% for the term of one to a five-year term.
Taxation: The rate of interest earned by such policies is added to your earning, hence is taxed.
These are close-ended debt mutual funds. The portfolio of this fund offers constant earnings.
Tenure: Its tenure varies from 1 month to 5 years.
Liquidity: The liquidity of Fixed Maturity Funds is low. It is suggested to invest in these one-time investment plans when you are positive to lock-in the finances for that period.
Returns: Fixed Mutual Funds are debt-oriented to provide consistent returns in a fast maturity period and thus shields you from the fluctuations of the market. However, the returns are not fixed as well as are not assured in FMP.
Taxation: The gains that you make in 36 months are considered as your profit and hence are taxed. However, the profits that are made after 36 months are taxed at the rate of 20% publish – indexation.
These are hybrid mutual funds that generate money returns through simultaneous selling and buying of funds in different markets for taking advantage of different prices.
Tenure: These are the open-ended funds that you can maintain for 12 months to get the gain of tax that is available for equity funds.
Liquidity: Since they are open-ended funds, thus the liquidity is high.
Returns: Currently, the return from arbitrage mutual funds is around 6% per annum. The return from this fund is neither confident nor consistent.
Taxation: Being an equity fund, this scheme qualifies for tax advantages.
The debt funds are the best for those who require profit every day, but are not risky. In this way, debt finances are not risky and therefore are not as unstable as equity funds. While talking about safety, debt funds score higher than equity mutual funds.
Returns: The return is neither constant nor confident. Currently, you can earn up to 7% per annum.
Taxation: The profits that are made under thirty-six months are added to your income and is taxed. However, the gains that are made above 36 months are taxed at the rate of 20% post – indexation.
Liquidity: The units can be redeemed in a short time and is excessive for these funds
Before, you decide upon that one-time investment plan, consider the following factors:
Risk: The entirety of the short-term investments generally has a lower chance segment when contrasted with their long-term partners because of the short maturity time frame. Said that, inside the class of generally safe transient investment alternatives, some momentary short-term instruments can be less unsafe than others. For example, from a profits point of view, T-bills are more secure than debt funds.
Diversification: This is one prime factor where the short-term investments mostly take away all the praises. It essentially offers an alternative so that you can change the investment from time to time. Moreover, the amount invested is not tied-up as in the case of a long-term investment and when required the investor can likewise invest the returns to other alternatives.
Liquidity: A key favourable position of transient ventures is high liquidity, for example, the simplicity of changing over them into money with insignificant misfortune in value. For example, treasury bills are exceptionally fluid as they can be exchanged at their market value during periods when the security showcase is operational. One must consider how the fluid is the transient interest where one expects to invest.
Flexibility: Flexibility is additionally a subset of enhancement. Ordinarily, the investment sum in short-term investment alternatives is less when contrasted with investments for a long-term perspective. This permits the investor to put the extra sum in some other investment choice. Short-term investment aides in building an expanded portfolio and not all the sum are coordinated to just a single alternative.
Tax Efficiency: Under the Short-term Capital Gains Tax (STCG), the profits from the short-term investments are duly taxable. In any case, the rate levied at the STCG might easily vary from product to the other product. So, when it comes to the tax efficiency of the investment alternative that is another prime aspect that should be considered while picking the best investment plans.
When you have an investment horizon for a year or less mentioned above are the best investment plans for 1-year in India.
Sooner than making your investments, you need to comprehend that the post-tax return is low as the premium or the benefits get acquainted with your benefits and taxed with regards to your income slab.
On the off chance that your financing skyline is anyplace as much as a year, select safe investment options, where the danger of dropping capital isn't there. Any day make it a rule of picking security over returns while the horizon of funding is considerably less and make the finest choice of a one-time investment plan.
Past 10 Year annualised returns as on 01-02-2024
^Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per 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
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^^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.
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.
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