Investment planning, which involves leveraging savings and making wise investments to improve returns, should be a part of financial planning. You feel more in control of your finances when you have a plan for your investment. It aids in choosing the best investment strategy you should use to reach your financial objectives on schedule. A proper investment plan is most beneficial for retired people. You will get a pension and gratuity after retirement if you are a salaried employee. Plan to use your pension for living expenses and use the gratuity amount for investments. Learn how to calculate the gratuity amount and prepare a proper investment plan with the money you will get.
Unlock the potential of India’s growing markets and make investment plans. Consumers always want to maximise returns, whether they are salaried employees or business owners. The investment plans for both types of people are different. You can start investing on your own terms if you are a business owner. If you are a salaried employee, you must consider investments after managing your daily expenses with your salary. Well, you can use your gratuity amount to invest. Learn how to calculate gratuity amounts and make a plan for investments and use a gratuity calculator.
Here are the best investment plans:
- Senior citizen savings scheme- In India, people above 60 years of age have access to the Senior Citizen Savings Scheme, a risk-free investing option that reduces their tax burden. Given that it provides a steady income, it is among the greatest ways to invest money for elderly individuals.
Features:
- There is a nomination facility.
- Early withdrawal of funds permitted.
- Flexible tenures.
- You can open both individual and joint life accounts.
- Post office monthly income scheme- Another investment choice that enables you to make monthly savings is the Post Office Monthly Income Scheme. This program is overseen by the India Post Department.
Features:
- Ability to open an individual or joint life account for two or three people.
- Minors above the age of 10 are permitted to open an account in their name.
- Provides interest income payable at a monthly rate of 7.1% p.a.
- No interest is paid on the accrued interest if monthly interest is not claimed.
- The monthly interest is taxable income.
- No tax break for investment or maturity amounts.
- Public provident fund- Public Provident Fund, a government-backed program, is one of the greatest ways to invest in India. It ensures investment returns while keeping the money secure.
Features:
- Loans on PPF are available after three years of continuous investment.
- One can withdraw money from the sixth policy year.
- A loan facility is available from the third investment year to the sixth year.
- The account can be kept open after maturation for an infinite amount of time at the existing interest rate.
- Fixed deposits- Fixed Deposits provide fixed returns over a predetermined period. It is one of the safest investment ideas with high returns because of its steady returns throughout time.
Features:
- Process for opening, maintaining, and renewing policies online.
- Profits are payable every month, quarter, half-year, or year.
- Offers a facility for overdrafts against FDs.
- Changes in the market do not affect fixed deposits.
- Guarantees return for the duration.
- Options for terms ranging from seven days to ten years.
- Senior persons receive additional rates of 0.25–0.75% per year.
- Direct equity- Purchasing market-linked stocks or units of a company that are listed on the stock exchange is known as a direct equity investment. Despite the considerable risk associated with stocks, these funds offer larger returns than any other investment choice on the market. This is one of the greatest investment plans in India for investors who like to take risks.
Features:
- Legally speaking, the investor is acquiring stock-based ownership of the company.
- Investors require a Demat account to invest in a direct equity fund.
- A growing company’s direct equity investment offers a higher long-term return.
- Think about things like selecting the best stock and choosing the best times to enter and exit the market.
- Analyse returns and risks.
- Mutual fund- The greatest approach to making disciplined investments is using mutual funds. It makes investments in market-linked financial products such as equities, bonds, money market funds, and equity and debt securities. Returns are generated depending on the market performance of the fund.
Features:
- A long-term investment that offers significant profits.
- Enables you to maintain a diverse investment portfolio.
- Assist you in maximising your earnings and achieving your investment goals.
- Experienced fund managers manage each mutual fund portfolio.
- Mutual funds offered by the Equity Linked Savings Scheme also provide tax benefits under Section 80C of the 1961 IT Act.