For capital appreciation, it’s essential to invest your money in various available financial instruments. Depending on your current needs and future goals, you can opt for the best investment plan for 3 years or more. Here are some of the best investment plans with high returns that you need to know about:
Fixed deposit
One of the most trusted and highly-sought after financial instrument in India is a fixed deposit (FD). An FD is a fixed-return instrument that guarantees returns and stability of investment. There are several FD options with varying lock-in periods and interest rates, which you can select based on your needs. It’s one of the best investment plans for 3 years and less. Another attractive feature of investing in FD is that the money can be utilized whenever the need arises. However, financial institutions levy a certain penalty if an FD is broken before maturity.
Mutual funds
A mutual fund pools in money from different investors and invests the money in various asset classes like stocks, debt, equity, etc., to reap high returns. In this way, mutual funds allow you to have a diverse portfolio even with a small amount. It’s one of the best investment plans with high returns and gives you the flexibility to choose funds as per your risk appetite and investment goals. One of the highlights of mutual fund investment is that your money will be handled by expert fund managers, having in-depth experience about the various aspects of investment. Also, remaining invested in mutual funds; particularly equity funds for the long-haul can help you build a size able corpus for essential life goals such as your child’s higher education, retirement, etc.
Unit-linked insurance plans (ULIPs)
Combining insurance and investment in to a single product, ULIPs are one of the prudent investment plans that can help you generate high returns in the long run. ULIPs invest in various funds of varying degrees of risk including equities, debt and hybrid; they help you accumulate wealth for essential life goals. ULIPs also allow partial withdrawal facility after the lock-in period of 5 years and also offer switching options wherein you can switch from an under performing fund to a more profitable one.
National pension scheme
The National Pension Scheme (NPS) is a prudent investment option for long-term investing and tax savings. A government-backed scheme that helps you builds a corpus for your retirement, the NPS helps bring down your tax liability. Note, that while investment up to Rs.1.5 lakh in a fiscal is eligible for deduction under section 80 CCD (1), you can claim an additional deduction of Rs.50,000 up and above Rs.1.5 lakh under section 80 CCD (1B). At the time of maturity, you’re required to invest 40% of the corpus in to an annuity for a monthly pension. Considering tax savings and building a retirement corpus, NPS is one of the best investment options for salaried and self-employed persons.
Real estate
This is an old-time favorite of investors with lump sum amounts to invest. It’s a classic example of the best investment plan with high returns because not only does it earn you passive income through rent but provides stability to your portfolio. Investing in real estate makes you eligible for tax deductions as well. Historically, the value of this asset class has increased close to the rate of inflation, which is why real estate can generate inflation-adjusted returns in the long run. On the basis of your financial situation, life goals, needs and risk appetite, you can select from the above investment options and have a diversified portfolio to reap high returns.
The Bottom Line:
There are several investment plans that can help you generate high returns. Here we have focused on some of the best investment plan with high returns from fixed deposit, mutual funds to unit-linked insurance plans
