The middle class is always concerned about making a proper wealth management plan by choosing the best investment options. Though accumulating wealth is critical for a secure future, you cannot rely only on your savings.
Instead, you can opt for the best investment plans in India for the middle class that can help your money grow. Investments are always considered a synonym of the stock market. However, this concept is only partially true. Apart from the stock market, there are many other investment options such as National Pension Scheme, Public Provident Fund, Debt Mutual Funds, RBI Bonds, Health Insurance Plans, and ULIPS.
You can opt for several short-term or long-term investment options as per your goals. It is also essential that you diversify your portfolio with different options to minimize any associated risk and get good returns. In this article, we will discuss some of the best investment options in India for the middle class.
Which are the best investment plans in india for the middle class?
Public Provident Fund (PPF)
Public Provident Fund, more commonly known as PPF, is a tax saving scheme with very little risk for investors. The maturity, as well as interest received, is tax-free here.
The minimum deposit amount ranges from Rs. 500-Rs.1,50,000 in any financial year. Hence, PPF is the best investment plan for investors looking for the best investment plans in India. It has a low-risk profile, but the time horizon is a bit long.
- Tenure Period: Lock-in Period of 15 years
- Risk: Low
- Liquidity required: Low
- Why should you invest in PPF? If you want to invest in safe plans for a long duration and get guaranteed returns.
National Pension Scheme (NPS)
NPS or National Pension Scheme is regulated by PFRDA (Pension Fund Regulatory and Development Authority of India). Any Indian resident within the age group of 18 to 60 years can open a National Pension Scheme Account.
With an NPS Account, you can also claim tax deduction up to the amount of Rs. 1,50,000 as prescribed in Section 80C of the Income Tax Act. NPS is among the best investment plans in India to avail tax benefits as well as save money for retirement.
- Tenure: The amount matures after retirement or at the age of 60
- Risk: Low
- Liquidity required: Low
- Why invest in NPS? To save money for retirement and also get tax benefits.
Debt Mutual Fund (DMF)
Debt mutual funds include fixed income securities such as treasury bills, short-term and long-term bonds, government securities, and many more.
It also provides moderate returns with safe investment options. Hence, debt mutual funds are the best investment option for individuals with low to moderate risks.
- Tenure: It can range from 1 day to more than 7 years
- Risk: Moderate
- Liquidity required: High
- Why Invest in DMF? These options are less risky than shares.
RBI Bonds
Until the year 2003, the RBI issued 8% Savings (Taxable) Bonds. After that, it got replaced by 7.75% Savings (Taxable) Bonds.
The investors receive the bonds in a Demat form that is issued to the Bond Ledger Account or BLA. You will receive a Certificate of Holding as proof of investment. Hence, it is considered not only safe but also, one of the best investment plans in India.
- Tenure: 7 years
- Risk: Low
- Liquidity required: High
- Why Invest? Since the whole nation is issuing this type of bond, hence it is a very safe option.
Gold
One of the best investment plans in India that act as a cover for inflation is gold. In the form of jewelry, gold has high making charges that range from 6% to 14% of the cost of the gold.
For investment purposes, you can purchase paper gold. This investment plan is cost-effective and can be processed through gold ETFs (Exchange Traded Funds). ETFs get traded in the stock market, and gold is the underlying asset here.
- Tenure: Long Term
- Risk: Low
- Liquidity required: High
- Why invest in gold? To diversify your investments and also to get a hedge against any type of inflation.
Health Insurance Plans
Health is our true wealth, and hence one investment that should be in the plan of every middle class should be health insurance. Health insurance plans have become a necessity regardless of age. With medical inflation and high treatment costs, many people are looking for the best health insurance plans to avoid paying huge medical bills that can drain their entire savings.
Vital Health Insurance Plans offers the best health insurance plans that include both individuals as well as family plans. You can get your health insurance plans within 60 seconds and get a risk cover for all types of health as well as wellness issues. This makes it one of the most sought-after options when it comes to the best investment plans in India
- Tenure: Renewable
- Risk: Low
- Liquidity required: Low
- Why invest? To save from paying hefty medical bills and cover healthcare costs.
Takeaway
The above-mentioned best investment plans in India will help you to invest your hard-earned money to achieve your financial objectives. An investment plan offers the much-needed benefit of maximizing your savings for a long-term investment. The primary step towards a good investment plan is to check the financial needs as well as risk profile and then make any investment. Some of the best ways to check on which investment plan suits your requirements are:
- Check all your requirements as well as your financial goals.
- Create a well-planned strategy by incorporating the appropriate investment plan.
- Evaluate the tenure of investment and check your goals.
- Create a diversified investment portfolio.
- Periodically, check your investment plans.