Choosing the best investment plan in India requires a lot of planning and hard work. Even though it is important to accumulate money to meet your future goals, the need for Life Insurance in your investment plan is equally necessary to secure your family’s finances, in case something happens to you. 

However, savings alone will not be enough. To develop the best investment plan in India, you need top investment options that can make your money grow. It is often falsely believed that investments only consist of equities or the stock market. While this is partially true, an investment plan also includes options like ULIPs, government bonds, etc. 

An investment portfolio is made up of short term and long term investment options that you can choose as per your financial goals and tolerance for risk. Many options in India offer returns in the form of added bonuses. That is the reason experts recommend diversifying your portfolio with only those investment options that minimize risk and maximize your returns. 

If you want the best investment plan in India, here are some options you need to consider adding to your portfolio. 

1. Fixed Deposits (FD)These are safes and the best short-term investment option. FDs attract high returns the longer you stay invested. The renewal is automatic, and you can benefit from the power of compounding over the years. FDs also give you complete security of your funds as well as guaranteed returns. It is due to these reasons that fixed deposits are such a popular investment option. 

• Mutual Funds

Mutual funds are market-linked products that are subject to market risk. Therefore, you need to understand the market and its risks before investing. If you know how to make market fluctuations work to your advantage, then mutual funds will be the best investment option for you to grow your wealth manifolds. They are suitable for both long-term and short-term investments. 

• Direct equity investing

Direct equity investing works best if you are planning to stay invested for the long term. They give you company equity shares, making you a partial company owner and giving you a right to attend company meetings. At the same time, profits made by the company are transferred to you proportionate to your shareholding. As an investor, you need to stay on top of the company’s performance as it can impact the share price. You must choose to buy or give up shares of a company based on your risk appetite and market conditions. 

1. Post Office Saving Schemes

Offered by India Post, these options were introduced to encourage people to save regularly. Post office saving schemes are considered an important part of the best investment plan in India because they offer you multiple investment options to help you in financial planning. Moreover, it is very easy to enrol in these schemes. 

• Bonds

Bonds are issued to public markets to aid the government in social programs and infrastructural development. Investors who are interested in investing in these schemes can buy these bonds to raise money. What makes them such a preferred instrument in the investment plan is transparency. You can find all the details about the loan principal, tenure, and interest payments information in the bond itself. Therefore, it assures you that your investment is safe. 

• National Pension Scheme (NPS)

National Pension Scheme is a government-backed scheme that aims to secure senior citizens’ financial interests after they have retired from their services. It is the best investment plan in India because it has little to no risk and helps you save money for your retirement. As part of this plan, you can invest in govt bonds, equity, or other funds as per your risk preference. You can start from as low as Rs. 500 and still earn an interest rate o 8% per annum! 

• ULIP

Unit Linked Insurance plan is a market-linked investment product that has insurance and investment component. The premiums you pay towards your ULIP policy are partially used to fund your life insurance plan, and the remaining is invested in an asset class of your choice. As a result, you get the dual benefit of wealth creation and life insurance in one product. This plan is ideal for long term investment. All the premium payments made towards your ULIP policy are also tax deductible up to Rs. 1.5L u/s 80C of the income tax act. 

These are just some of the many investment options that will help you create the best investment plan in India. Be sure to assess your budget, lifestyle, and financial goals before choosing the financial instruments for investment.