Top 15 Best Investment Plans In India

As we step into 2024, investment opportunities in India continue to evolve, offering a plethora of options for individuals looking to grow their wealth. Checking these options to find the best investment plans with high returns requires understanding the current market trends and aligning them with individual financial goals.

What are Investment Plans?

Investment plans are financial products or strategies that individuals use to grow their capital over a period. These plans vary greatly in terms of risk, return, and investment horizon. Here’s a brief overview:

Key Characteristics of Investment Plans

• Purpose: The primary purpose of an investment plan is to accumulate wealth over time to meet financial goals like retirement, buying a house, funding education, or ensuring financial security.

• Types of Investments: They can range from traditional fixed-income instruments like Fixed Deposits (FDs) to market-linked options like mutual funds, stocks, and bonds. Each type comes with its own risk-reward profile.

• Risk and Return: Generally, higher returns are associated with higher risks. For instance, equities offer high growth potential but come with market volatility, whereas fixed deposits offer stability with relatively lower returns.

• Investment Horizon: Investment plans can be short-term or long-term. Short-term plans are usually for goals that are up to 3 years away, while long-term plans are for goals that are more than 5 years away.

• Tax Efficiency: Some investment plans offer tax benefits, like ELSS mutual funds under Section 80C of the Income Tax Act. It's important to consider the tax implications of your investments.

Why Investment Plans Are Essential

• Wealth Creation: Investment plans are key to creating wealth over time, helping to beat inflation and increase purchasing power.
• Meeting Financial Goals: They are crucial in planning for and achieving financial goals at different life stages.
• Financial Security: Well-planned investments provide financial security and peace of mind.

Investment plans are foundational to effective financial planning. Choosing the right plan depends on individual risk tolerance, investment horizon, financial goals, and the need for liquidity.

Investment Considerations To Keep in Mind

• Market-Linked Returns: Returns are subject to market risks, particularly for equity-oriented funds. Policyholders should align their fund choices with their risk tolerance levels.

• Long-Term Financial Planning: Many of the plans mentioned below are most effective as a long-term investment tool. This means they offer the potential for higher returns over a longer duration.

• Policy Charges: Understanding the various charges associated with your chosen policy, such as premium allocation charges, fund management fees, and policy administration charges, is crucial as they can impact the overall returns.

15 Best Investment Plans in India with High Returns to Invest in 2024

1. Max Life Online Savings Plan

The Max Life Online Savings Plan is a comprehensive life insurance product that combines the benefits of life coverage with the potential for wealth accumulation. It's an appealing choice for those seeking a balanced approach to saving and insurance in 2023.

Features of Max Life Online Savings Plan

• Life Insurance with Savings: This plan offers a life insurance cover while allowing you to save money over a period. It's designed to provide financial security to your family in case of unforeseen events, along with the opportunity for wealth creation.

• Flexible Plan Options: The plan comes with various options to suit different investment and insurance needs. You can choose the sum assured, policy term, premium payment term, and investment strategies based on your financial goals.

• Investment Component: The savings component is invested in a mix of instruments, which may include debt and equity, depending on the option chosen. This offers the potential for higher returns compared to traditional savings methods.

• Tax Benefits: Premiums paid towards the plan are eligible for tax deductions under Section 80C of the Income Tax Act. The plan also offers tax-free maturity benefits under Section 10(10D), subject to prevailing tax laws.

2. Tata AIA Fortune Pro

Tata AIA Fortune Pro is a Unit Linked Insurance Plan (ULIP) that offers the dual benefit of life insurance cover and investment. It's designed for individuals looking for market-linked returns along with life insurance protection.

Features of Tata AIA Fortune Pro

• Life Cover and Investment: This plan provides life insurance cover to protect your family in case of unforeseen events. Simultaneously, it allows you to invest in various fund options linked to the market.

• Multiple Fund Options: The plan offers a range of fund options, including equity, debt, and balanced funds. Investors can choose or switch between funds based on their risk appetite and market conditions.

• Flexibility in Premium Payment: Tata AIA Fortune Pro offers flexibility in premium payment terms. You can opt for single, limited, or regular premium payment options, depending on your financial situation.

• Tax Benefits: Premiums paid under this plan are eligible for tax deductions under Section 80C of the Income Tax Act. The plan also offers tax-free maturity benefits under Section 10(10D), subject to prevailing tax laws.

3. Birla Sun Life Wealth Aspire Plan

The Birla Sun Life Wealth Aspire Plan is a Unit Linked Insurance Plan (ULIP) offered by Birla Sun Life Insurance. This plan is designed to cater to individuals seeking a combination of life insurance coverage and the opportunity to grow their wealth through market-linked investments.

Features of Birla Sun Life Wealth Aspire Plan

• Dual Benefits: This plan provides life insurance cover along with the potential for wealth creation through investments in various fund options.

• Investment Options: Investors have access to a diverse range of fund options, including equity, debt, and balanced funds, allowing them to align their investments with their risk appetite and financial goals.

• Premium Payment Flexibility: The plan offers various premium payment options, including single, limited, and regular payment choices, catering to different financial needs and capabilities.

• Wealth Boosters: The plan includes additional wealth boosters, which are added to the fund value at predetermined intervals, provided the policy is in force and regular premiums are paid.

• Tax Benefits: Premiums paid under the Birla Sun Life Wealth Aspire Plan are eligible for tax deductions under Section 80C. The plan also provides tax-free maturity benefits under Section 10(10D), subject to current tax laws.

4. HDFC Standard Sampoorn Nivesh (11X)

The HDFC Standard Sampoorn Nivesh (11X) is a comprehensive insurance cum investment plan offered by HDFC Life. This plan is designed to provide a mix of investment opportunities along with insurance coverage, catering to individuals seeking a multi-benefit financial product.

Features of HDFC Standard Sampoorn Nivesh (11X)

• Integrated Insurance and Investment: This plan combines life insurance cover with an investment component, allowing policyholders to grow their savings while ensuring financial protection for their families.

• Flexible Plan Options: The plan offers a range of options in terms of premium payment, policy term, and sum assured, making it customizable to individual needs and financial goals.

• Investment Choices: Policyholders can choose to invest in various fund options, ranging from equity to debt, depending on their risk appetite and investment objectives.

• Sum Assured Multiples: The plan provides a unique feature where the sum assured can be up to 11 times the annual premium, depending on the policy terms and conditions.

• Tax Benefits: Premiums paid towards HDFC Standard Sampoorn Nivesh are eligible for tax deductions under Section 80C, and the maturity proceeds are tax-free under Section 10(10D), subject to prevailing tax laws.

5. Bajaj Allianz Smart Wealth Goal

The Bajaj Allianz Smart Wealth Goal is an insurance cum investment plan offered by Bajaj Allianz Life Insurance. This plan is designed to cater to individuals who are looking for a financial product that combines the benefits of wealth creation and life cover.

Features of Bajaj Allianz Smart Wealth Goal

• Dual Advantage: This plan provides life insurance cover while also focusing on wealth accumulation through market-linked investments.

• Investment Flexibility: Policyholders have the option to choose from various fund options, including equity and debt funds, depending on their risk appetite and financial goals.

• Premium Payment Options: The plan offers flexibility in premium payment terms, allowing policyholders to choose based on their financial convenience.

• Loyalty Additions: Bajaj Allianz Smart Wealth Goal includes loyalty additions to boost the fund value, provided the policy and premium payments are maintained without any interruptions.

• Tax Benefits: Premiums paid towards the plan are eligible for tax deductions under Section 80C of the Income Tax Act. The plan also provides tax-free maturity benefits under Section 10(10D), subject to prevailing tax laws.

6. PNB Metlife Mera Wealth Plan

The PNB Metlife Mera Wealth Plan is a unit-linked insurance plan (ULIP) offered by PNB MetLife India Insurance Co. Ltd. This plan is tailored for individuals seeking an investment avenue that combines life insurance coverage with wealth creation potential.

Features of PNB Metlife Mera Wealth Plan

• Combination of Insurance and Investment: This ULIP provides life insurance cover while allowing policyholders to invest in various fund options linked to the market.

• Diverse Fund Options: The plan offers a choice of multiple fund options ranging from equity to debt, catering to different risk appetites and investment objectives.

• Flexible Premium Payment: Policyholders have the flexibility to choose their premium payment terms, which can be single, limited, or regular, depending on their financial situation.

• Liquidity through Partial Withdrawals: The plan allows for partial withdrawals after the completion of the lock-in period, providing some liquidity to meet emergency financial needs.

• Tax Benefits: Premiums paid under PNB Metlife Mera Wealth Plan are eligible for tax deductions under Section 80C. The plan also offers tax-free maturity benefits under Section 10(10D), subject to prevailing tax laws.

7. LIC SIIP

LIC SIIP, or Systematic Investment Insurance Plan, is a unit-linked insurance plan (ULIP) offered by the Life Insurance Corporation of India (LIC). This plan is designed for investors looking to combine the benefits of life insurance coverage with investment in the capital market.

Features of LIC SIIP

• Dual Benefit of Insurance and Investment: LIC SIIP provides life cover to ensure financial security for the policyholder's family, along with the opportunity to invest in various market-linked funds.

• Range of Fund Options: The plan offers a variety of fund options, including equity, debt, and balanced funds. Policyholders can select or switch between these funds based on their risk appetite and investment goals.

• Premium Payment Flexibility: Policyholders can choose from different premium payment modes, including regular, limited, or single premium payment options, providing flexibility according to their financial convenience.

• Loyalty Additions: The plan offers loyalty additions for policies with a longer policy term, enhancing the fund value for policyholders who stay invested for the long term.

• Tax Benefits: Premiums paid under LIC SIIP are eligible for tax deductions under Section 80C of the Income Tax Act. Additionally, the plan offers tax-free maturity benefits under Section 10(10D), as per the prevailing tax laws.

8. Kotak Mahindra OM E-Invest

Kotak Mahindra OM E-Invest is a unit-linked insurance plan (ULIP) offered by Kotak Mahindra Life Insurance. This plan is designed for digitally savvy investors who are looking for a convenient and flexible way to combine life insurance coverage with investment in the capital market.

Features of Kotak Mahindra OM E-Invest

• Digital and Flexible Investment: This plan is tailored for ease of online management, offering a seamless digital experience for purchasing and managing the policy. It provides flexibility in choosing investment funds and switching between them.

• Diverse Fund Options: The plan offers a range of fund options, including equity, debt, and balanced funds, allowing policyholders to diversify their investments according to their risk appetite and financial goals.

• Premium Payment and Policy Terms: Kotak Mahindra OM E-Invest comes with various premium payment term options and policy terms, catering to different investment horizons and financial capabilities.

• Loyalty Additions and Boosters: The plan includes loyalty additions and booster benefits for long-term policyholders, enhancing the value of the investment over time.

• Tax Benefits: Premiums paid towards the plan are eligible for tax deductions under Section 80C, and the maturity proceeds are tax-free under Section 10(10D), in accordance with prevailing tax laws.

9. Edelweiss Tokio Wealth Secure+

Edelweiss Tokio Wealth Secure+ is a unit-linked insurance plan (ULIP) offered by Edelweiss Tokio Life Insurance. This plan is designed for individuals who are seeking a flexible and comprehensive solution for life insurance coverage along with the opportunity for wealth creation through market-linked investments.

Features of Edelweiss Tokio Wealth Secure+

• Combination of Insurance and Investment: This ULIP offers life insurance cover and the potential for wealth accumulation by investing in a range of fund options linked to the capital market.

• Diverse Investment Options: Policyholders can choose from a variety of fund options, including equity, debt, and balanced funds, to suit their risk tolerance and investment objectives.

• Flexible Premium Payment Terms: The plan allows for different premium payment terms, providing flexibility to cater to varying financial needs and goals.

• Long-Term Wealth Creation: Edelweiss Tokio Wealth Secure+ is geared towards long-term wealth creation, with features like loyalty additions that enhance the fund value over time.

• Tax Benefits: Premiums paid towards the plan are eligible for tax deductions under Section 80C of the Income Tax Act. Additionally, the maturity proceeds are tax-free under Section 10(10D), subject to prevailing tax laws.

10. ICICI Prudential Signature

ICICI Prudential Signature is a unit-linked insurance plan (ULIP) offered by ICICI Prudential Life Insurance. This plan is designed for individuals seeking a customized insurance solution with a significant investment component, offering flexibility and multiple benefits.

Features of ICICI Prudential Signature

• Integrated Insurance and Investment: This ULIP provides life insurance cover and the opportunity to invest in a range of market-linked funds, aiming for wealth accumulation.

• Diverse Fund Options: Policyholders have the option to invest in various fund choices, including equity, debt, and balanced funds, depending on their investment goals and risk appetite.

• Flexible Premium Payment: The plan offers different premium payment options (single, limited, or regular), catering to the financial convenience of the policyholder.

• Unlimited Free Switches: One of the key features of ICICI Prudential Signature is the provision of unlimited free switches, allowing policyholders to switch between funds to optimize their investment strategy.

• Tax Benefits: Premiums paid are eligible for tax deductions under Section 80C, and the plan offers tax-free maturity benefits under Section 10(10D), subject to prevailing tax laws.

11. AVIVA Life i-Growth

AVIVA Life i-Growth is a non-participating unit-linked insurance plan (ULIP) offered by AVIVA Life Insurance. This plan is tailored for individuals looking for an investment-cum-insurance solution, focusing on wealth creation along with life cover.

Features of AVIVA Life i-Growth

• Combination of Insurance and Investment: AVIVA Life i-Growth provides life insurance cover while offering the opportunity to invest in market-linked funds, aiming for wealth accumulation.

• Multiple Investment Options: The plan offers a choice of three fund options – 'Balanced Fund', 'Bond Fund', and 'Enhancer Fund', catering to various risk appetites and investment strategies.

• Policy Term Flexibility: Policyholders can choose from three policy term options – 10, 15, or 20 years, depending on their long-term financial objectives.

• Premium Payment Terms: The plan allows for limited premium payment terms, meaning you can pay premiums for a shorter duration than the policy term, offering financial flexibility.

• Loyalty Additions: To encourage long-term investment, the plan includes loyalty additions, which are added to the fund value at the end of the policy term, provided all due premiums have been paid.

12. SBI eWealth Insurance

SBI eWealth Insurance is a unit-linked insurance plan (ULIP) offered by SBI Life Insurance. This plan is designed for individuals seeking an efficient online platform to manage their insurance and investment needs.

Features of SBI eWealth Insurance

• Online Management: SBI eWealth Insurance is tailored for ease of online access, allowing policyholders to manage their investments and insurance cover conveniently from anywhere.

• Dual Benefit: The plan offers life insurance coverage along with the potential for wealth creation through market-linked investments.

• Investment Options: There are two fund options available – 'Growth' and 'Balanced'. The 'Growth' option has a higher exposure to equity, while the 'Balanced' option is a mix of equity and debt, catering to different risk preferences.

• Flexible Policy Terms: The plan offers a range of policy term options, making it suitable for various long-term financial planning needs.

• No Premium Allocation Charge: One of the key attractions of SBI eWealth Insurance is the absence of a premium allocation charge, which means more of your premium goes towards the investment component.

13. National Pension Scheme (NPS)

The National Pension Scheme (NPS) is a government-backed pension scheme in India, aimed at providing a stable and regular income post-retirement. It's an attractive long-term investment option for those looking to secure their financial future.

Features of National Pension Scheme (NPS)

• Retirement-Focused Investment: NPS is designed to provide financial security during retirement by accumulating a pension corpus through regular contributions during one's working life.

• Flexible Investment Options: NPS offers two investment choices - the Active Choice, where you can allocate your investments across different asset classes, and the Auto Choice, a default option where funds are automatically managed based on your age profile.

• Asset Classes: The scheme allows investments in four asset classes: Equity (E), Corporate bonds (C), Government bonds (G), and Alternative Investment Funds (A).

• Tax Benefits: Contributions to NPS are eligible for tax deductions under Section 80C and an additional deduction under Section 80CCD(1B) of the Income Tax Act. The scheme also offers partial tax-free withdrawal and tax-free lump sum withdrawal up to a certain limit at retirement.

Investment Considerations

• Long-Term Horizon: NPS is a retirement-focused scheme, making it suitable for long-term investment with a horizon extending to retirement age.

• Risk Profile: The risk in NPS depends on the asset allocation, with equity exposure bringing higher risk and potential for higher returns, while government and corporate bonds offer more stability.

• Liquidity: NPS has a lock-in period until retirement (age 60), making it a less liquid investment option compared to others. However, partial withdrawals are allowed under specific conditions.

• Annuity Purchase: Upon retirement, a portion of the corpus must be used to purchase an annuity, which will provide a regular pension.

14. Public Provident Fund (PPF)

The Public Provident Fund (PPF) is one of the most popular long-term savings-cum-investment instruments in India, mainly due to its combination of safety, returns, and tax benefits. It's an ideal option for individuals seeking a risk-free avenue for long-term savings.

Features of Public Provident Fund (PPF)

• Risk-Free Investment: PPF is backed by the Government of India, making it a safe investment with guaranteed returns, unaffected by market volatility.

• Attractive Interest Rates: The interest rates on PPF accounts are set by the government and are typically higher than those on regular savings accounts. The interest is compounded annually.

• Tax Benefits: Investments made in PPF accounts qualify for tax deductions under Section 80C of the Income Tax Act. Additionally, the interest earned and the maturity amount are exempt from tax.

• Investment Duration: The maturity period of a PPF account is 15 years, which can be extended in blocks of 5 years. It encourages long-term savings discipline.

• Minimum and Maximum Investment Limits: PPF has an annual investment limit, with a minimum and maximum deposit limit per financial year, making it accessible for a wide range of investors.

15. Senior Citizen Savings Scheme (SCSS)

The Senior Citizen Savings Scheme (SCSS) is a government-backed savings instrument in India, specifically designed for senior citizens. It offers a safe and reliable avenue for retirees to invest their funds while ensuring a steady income stream.

Features of Senior Citizen Savings Scheme (SCSS)

• Targeted at Senior Citizens: SCSS is available for individuals aged 60 years and above. It is also open to retirees who have opted for the Voluntary Retirement Scheme (VRS), starting from the age of 55.

• Attractive Interest Rates: The scheme typically offers interest rates higher than standard fixed deposits. The interest rates are set by the government and revised quarterly.

• Regular Income: SCSS provides quarterly interest payouts, making it an ideal option for seniors looking for a regular income post-retirement.

• Investment Tenure: The maturity period of SCSS is 5 years, which can be further extended by 3 years once the scheme matures.

• Tax Benefits: Investments in SCSS qualify for tax deductions under Section 80C of the Income Tax Act. However, the interest income is taxable, but TDS (Tax Deducted at Source) is applicable only if the interest amount exceeds a certain limit.

Final Thoughts

In 2023, the Indian investment sector offers a diverse range of options, catering to different risk appetites, financial goals, and investment horizons. From ULIPs like ICICI Prudential Signature and Bajaj Allianz Smart Wealth Goal to government-backed schemes like PPF and SCSS, investors have a plethora of choices for wealth creation and savings. Each investment plan has its unique features, benefits, and risks, making it crucial for investors to choose wisely based on their personal financial objectives, risk tolerance, and long-term goals.

FAQs

• What are some of the best investment plans in India for 2023?

Options include ULIPs, PPF, NPS, SCSS, and private investment plans like Max Life Online Savings Plan, Tata AIA Fortune Pro, and others.

• Is PPF still a good investment option in 2023?

Yes, PPF remains a popular choice due to its safety, attractive interest rates, and tax benefits.

• Are ULIPs a good investment choice?

ULIPs can be a good choice if you're looking for a combination of investment and insurance. They are suitable for long-term goals and offer flexibility in fund choice.

• What is the best investment plan for senior citizens?

The Senior Citizen Savings Scheme (SCSS) is often recommended for its safety and regular income provision.

• Can I invest in NPS for retirement?

Yes, the National Pension Scheme (NPS) is an excellent tool for retirement planning, offering tax benefits and a mix of investment options.

• What are the tax benefits of investing in PPF?

Contributions to PPF are eligible for tax deductions under Section 80C, and the interest earned and maturity amount are tax-exempt.

• How can I choose the right investment plan?

Consider factors like your investment horizon, risk appetite, financial goals, and the plan's features and benefits.

• Are there any good investment plans for wealth creation?

ULIPs, mutual funds, and certain private insurance plans offer good opportunities for wealth creation, especially for long-term investors.

• What is a good short-term investment plan?

For short-term goals, consider liquid funds, short-term fixed deposits, or recurring deposits.

• How safe are private investment plans like Max Life Online Savings Plan?

Private plans are regulated by IRDAI and offer varying degrees of risk based on the product type. It's important to understand the product features and associated risks before investing.