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A Guide To The Best Investment Plans In India

A Guide To The Best Investment Plans In India - Aegon Life

Each and every one of us is on the lookout for the best investment avenues for our hard earned money. With the plethora of options available in the market, it is very easy to get confused. While some investments may carry very high risks, others may not provide enough tax savings. An ideal investment is the one that not only provides goods returns, but also great tax savings with minimal risks. The key to profitable and safe investing is planning over the long term. Short term investments plan are generally more risky in nature and provide scanty returns. When it comes to choosing investment options, a smart investor always looks for safety along with significant capital appreciation. Here’s a list of the best investment plans that in India, that will give you the optimum returns for your money.

  1. ULIPs: – ULIPs or Unit Linked Insurance Plans offer the dual benefit of a life insurance policy and mutual funds. They are a suitable choice for investors who are risk averse, but want to reap the benefits of the stock markets. A part of the premium paid for a ULIP is utilized to provide you with a life cover and the rest of the corpus is invested in the stock market. Even though your money would be invested in the stock market, ULIPs carry minimal risks as it is professionally managed by fund managers. It offers a wide range of choices such as equity or debt based, according to the risk appetite of the investor. Moreover, ULIPs are also eligible for tax benefit under the section 80 C of the Income Tax Act. They can be an ideal investment option for long term financial goals such as down payment for purchasing property, child’s education, marriage etc.
  2. Mutual Funds: – They are the best investment option for individuals who want to invest in equities and bonds with a balance of risk and returns. Investing directly into the stock market is not everybody’s cup of tea, since it is laden with many risks. However, due to the professional management and the portfolio diversification provided by a mutual fund, they have become a popular means of investment in the recent years. An investor can also opt to invest in a mutual fund for a longer period through SIPs or Systematic Investment Plans and obtain more returns. Mutual funds are the best way to overcome the instability of the market by making small investment at regular intervals.
  3. Endowment Plans: – Endowment plans are life insurance policies that not only provide a life cover but also maturity benefits at the end of the term. Unlike other types of life insurance policies, an endowment plan will pay out a lump sum even if the policy holder is alive at the end of the policy term. They are a risk free investment which provides good returns and is a great tool for long term financial planning. An Endowment policy is also eligible for tax benefits under Section 80 C.