Investment Plans
Types of Investment Plans We Offer
Bharti Life Growth shield Plus
- A unit linked, non-participating individual life insurance plan
- Multiple investment strategies to suit your investment needs
Return of 2X premium allocation charge
Bharti Life Wealth Pro
- An Individual Linked life cover with Insurance cum Savings Plan.
- Choose a Variant: The plan offers you two variants to choose from a) Growth Variant b) Legacy variant
- Grow your wealth further with Wealth booster
- Multiple Investment Strategies to suit your investment needs
- Tax benefits
Bharti Life Grow Wealth
- A Unit Linked, Non-Participating Individual Life Insurance Plan
- Grow your wealth with low risk!
Bharti Life Wealth Maximizer
- An Individual Linked life cover with Insurance cum Savings Plan.
- Choose a Variant: The plan offers you two variants to choose from a) Growth Variant b) Legacy variant
- Grow your wealth further with Wealth booster
- Multiple Investment Strategies to suit your investment needs
- Tax benefits
What is an Investment Plan?
Investment plans are essentially financial instruments that aid in the creation of long-term wealth. Various investment plans in India enable us to invest our savings in various money-market products in a disciplined and periodic manner in order to achieve our financial objectives.
Overall, investment plans give us the much-needed benefit of maximising our savings through systematic, long-term investments that create wealth for the future. The first step in developing an investment plan in India is to assess your risk profile and financial needs and then select an investment plan that meets those needs. Some of the investment opportunities in India are as follows :
- ULIPs
- PPFs
- Mutual Funds
- Sukanya Samriddhi Account
- Monthly Income Plans
- Tax Saving Fixed Deposits
- Senior Citizens Saving Schemes
These investment plans, like many others, necessitate extensive research before selecting investment schemes that provide long-term sustainable gains, tax benefits, and capital appreciation. Several investment plans in India may be suitable for you.
What are the Types of Investments in India?
These investment programmes, like many others, need extensive investigation before selecting investment schemes that give long-term sustainable returns, tax benefits, and capital appreciation. Several investment strategies in India may be suitable for you.
When deciding amongst the best investment plans with high returns, it is essential to examine the risk associated with these investment plans. The risk of an investment strategy can be represented as the potential or likelihood of the asset performing below expectations or incurring a permanent loss of value.
Different investment strategies are therefore essentially classified into three groups based on the accompanying risk, as indicated below:
Low Risk Investment Options
Low-risk investment plans, as the name implies, are those in which the element of risk is close to nil. In other words, low-risk investing programmes tend to give consistent and steady value increase with little losses. The following is a list of some of the best investment alternatives to explore.
Sukanya Samriddhi Yojana
Sukanya Samriddhi Account is quickly becoming known as one of the best investment plans in India for girls. If you have a girl kid, this Yojana tries to make corpus creation easier. Interest rate is 7.6% per annum (Q4 FY 2021-22). Sukanya Samriddhi Yojana accounts can be opened at commercial banks and post offices. Furthermore, you can benefit from substantial tax savings under Section 80C of the Income Tax Act of 1961.
Public Provident Fund (PPF)
Given the variety of benefits it offers, the Public Provident Fund (PPF) is one of the greatest investing options in India. If you are a salaried individual, PPF might provide several benefits. You can claim tax deductions on contribution, under Section 80C of the Income Tax Act of 1961.
Postal Service Monthly Income Plans
Post office monthly income scheme is generally recognised as one of the greatest investment plans. It is best suited for risk-averse persons searching for low-risk investment plans with acceptable returns. You should be aware that, income from post office monthly income schemes is completely taxable, monthly income plans do not qualify for Tax Deduction at Source (TDS).
Government Schemes for Senior Citizens (SCSS)
For a number of reasons, the Indian government's senior citizen savings system - SCSS – is largely considered one of the greatest investing alternatives in India.
First and foremost, the system provides considerable financial security for older persons. Second, the government sets the interest rate for this plan every quarter. SCSS accounts can be opened at post offices and any nationalized bank.Tax Saving Fixed Deposits (FDs)
Tax saving fixed deposits (FDs) are widely regarded as one of the best investment schemes and investment plans in India since they give considerable tax savings advantages under Section 80C and can help you reduce your overall tax obligation.
Sovereign Gold Bonds
Sovereign Gold Bonds (SGBs) are issued by the Reserve Bank of India and are guaranteed by the Indian government. SGBs are securities that are denominated in gold units and are used as an alternative to holding actual gold (grams). SGBs are one of the greatest investment alternatives in India since they may be redeemed in cash at maturity.
Life Insurance
Savings and income plans, as well as protection plans, are two types of life insurance that fall into the low-risk category. Such life insurance policies include no discernible investment component, implying that they do not provide market-linked returns. Instead, these life insurance policies provide a solid financial safety net for your family as well as effective protection against life's difficulties.
Bonds
Bonds are certificates that represent your agreement to lend money to the issuer at the specified interest rate. The interest on each bond may be paid to you on a regular basis, and the face value might be refunded at the end. You can also sell the bond before it expires if you need it. Because of their relative safety, bonds are regarded as one of the best investment alternatives in India.
Liquid Funds
Open-ended debt funds, often known as liquid funds, are investments in money market products such as T-bills, commercial papers, and term deposits. Liquid Funds have a maturity period of upto 3 months. It's a low-risk mutual fund programme that can mostly pay more than your bank's FDs or savings account.
Liquid funds, which has historically offered returns in the range of 7-9 per cent, are one of the best investment plans in India if you search for a short-term investment period. The mutual fund scheme's liquidity is one of the factors that make it appealing to investors.
National Pension Scheme (NPS)
National Pension Scheme is a type of investment retirement scheme that allows the investor to have regular income and financial stability even after retirement. Few benefits of NPS are :
Tax Benefits as per current tax laws
Scheme will remain the same even if you change your city or state or your job.
Real Estate Investment
Real estate is one of India's fastest-growing industries, with promising potential in retail, housing, manufacturing, commercial, hospitality, and other areas. Among the available investment plans in India, purchasing a flat or plot is undoubtedly one of the best choices to make. Real estate investment functions as an asset and are regarded as one of the best long- term investment plans in India that yield significant returns.
High Risk Investment
High-risk investment plans, as the name implies, are appropriate for investors whose primary goal is long-term capital growth. Meanwhile, most high-risk investment programmes experience big volatility but provide the potential for significant long-term profits. The following are some examples of high-risk investing plans :
Direct Equities
Equities provide risk-taking investors with the opportunity to attain their financial objectives. While each asset is important in its own way, equities have an established track record in the long run when compared to other assets. Thus, with an equity investment, you may purchase a portion of a company's ownership, entitling the investor to the company's profits and losses.
Unit-Linked Insurance Plans
Because they provide both life insurance and investment returns, ULIPs, or unit-linked insurance plans, are often considered as one of the best investment alternatives in India. Not only that, but they also offer you the option of dividing your money into three categories: high risk, medium risk, and low risk. This is due to the fact that it allows you to put your money in a variety of different fund possibilities. While a portion of the money is assigned to various fund alternatives (depending on your investment objectives and risk profile), the remainder is utilised to offer much-needed insurance coverage.
Overall, ULIPs are simply life insurance policies with the added benefit of investing your money in various money-market linked assets based on your objectives. As a result, ULIPs provide yet another way to invest in a professionally managed portfolio of stocks or bonds. The advantage of investing in a bond fund through a ULIP is that you may be eligible for a tax deduction under Section 80C if certain requirements are met.
ULIPs provide a clear classification of risk categories, allowing you to select the greater risk fund for long-term goals. As your investment approaches maturity, you can progressively transition to lower-risk assets.
Mutual Fund
A mutual fund is established when money is collected from several individuals and invested in the stocks or bonds of a corporation. A mutual fund is often owned by thousands of individuals and managed jointly to maximise profits. A professional fund manager is in charge of the mutual fund.
Mutual funds provide diversification with a reduced investment corpus in any or all assets. You can, for example, invest in a pure equity fund, a debt fund, or a hybrid fund that invests in both equities and bonds.
Mutual funds may provide distinct risk category funds based on the equities or bonds in which they invest.
Medium-Risk Investments
Medium or moderate risk investments, as the name implies, are investment programmes that function as diversified or balanced investments. Investment plans with a moderate risk profile provide not only the opportunity for development but also the willingness to accept some market volatility.
Most medium risk investment strategies assist diversify your investment portfolio by utilising a combination of equity and debt instruments to create consistent returns while avoiding large dangers. The following are some examples of medium risk investing plans :
- Monthly income plans
- Arbitrage funds
- Monthly income plans
Which Investment Plan Best Suits Your Financial Needs in India?
Choosing between investing alternatives in India gets easier when you analyse the risk-return potential of all investment programmes. As a wise investor, you should diversify your financial portfolio by integrating many investment plans - each with a different risk profile and based on your financial needs.
When to Start Investing in an Investment Plan
Every one of us has a set of objectives that we hope to attain during our lives. However, in this day and age, we cannot rely solely on our money. We may achieve these objectives by developing a solid financial portfolio through investment programmes.
To achieve your goals of purchasing a home or financially guaranteeing your retirement, it is critical that you find the best investment plan that will help you increase your money over time. As a result, before you begin investing in any of the top investment plans with high returns, you should have a goal and a rough schedule in mind. Remember, after you've identified a goal, you should begin investing as soon as possible — doing so will help you speed the process.
Why Should You Invest in Investment Plans?
If you are a salaried or self-employed individual, keep in mind that you cannot attain your goals just via savings – you must optimise your resources and develop wealth through investment strategies. To amass riches, you must invest in some of the top investment possibilities with high returns.
If you do not invest, you will most likely miss out on possibilities to increase your financial worth and wealth-building potential. While there is a danger of losing money with investment plans, there is also a considerably stronger possibility for considerable return - provided you invest properly and on time.
How to Choose one of the Best Investment Plans
Here's how to pick the finest investment plans among India's greatest investment options :
- Examine your financial requirements and objectives.
- Calculate the time it will take you to invest in order to reach each objective.
- Create a plan by combining the appropriate insurance and investment products that are in line with your objectives.
- Diversify your holdings – You may have invested in a single investment plan, but you should consider numerous investment and insurance programmes.
- Learn about the various fees that are paid on various investing plans.
- Review your investing strategies on a regular basis.
Factors to Consider While Choosing an Investment Plan in India
Financial Objectives
The first thing to consider when selecting an investing strategy is your financial objectives, both long-term and short-term. These aspirations might range from marriage and school to foreign travel and new cell-phones, and having such financial goals in mind can allow you to make an informed decision. For example, if you wish to save money for a vacation to your favourite overseas place, a recurring deposit or post office deposit may be one of the best investment schemes for you.
Upcoming Expenses
If you're searching for an investing plan in India, a vital first step is determining your anticipated future costs, such as your child's marriage and schooling or the purchase of a property. This will give you a clearer picture of how much you need to invest now in order to receive sufficient returns later to cover any potential expenses.
Current Expenses
Evaluating your current spending is a critical step in determining the appropriate investing strategy. For example, if you don't have any high costs, such as housing rent, you may save or invest more in the long term. However, if you have financial responsibilities that prevent you from saving much, investing one of the best investment schemes will be more helpful.
Dependents on Income
Most individuals in India do not consider their financial dependence while purchasing an investment plan. However, doing so is critical since you must have an investment or savings pool that is sufficient for your dependents' monetary aspirations as well. For example, if you just have two children who rely on you, you may not need to invest as much as someone who also has parents, siblings, and children to care for.
Short Term Investment Plans
Best Investment Plan for 1 Year
If you like short-term investments, a lockup period of even three years may seem excessive. However, there are several 12-month investing programmes that can help you avoid market dangers. Here are some excellent short-term investing plans to consider :
- Recurring Deposits
- Fixed Maturity Plan
- Post Office Deposits
- Arbitrage Funds
- Debt Funds
- Fixed Deposits
Best Investment Plan for 3 Year
Three-year investment schemes are a popular version of short-term investment plans, and they are best suited for people who expect large returns in a short period of time. Here are a few alternatives to consider :
- Liquid Funds
- Fixed Maturity Plan
- Recurring Deposits
- Savings Account
- Arbitrage Funds
Best Investment Plan for 5 Year
Although 5 years is a lengthy time, in India, a 5-year investment plan is often seen as a short-term investment with modest market risks. However, the returns on a 5-year investment programme are significantly larger than those on other short-term investments. So, here are some possibilities for you to consider :
- Savings Account
- Liquid Funds
- Post Office Time Deposit
- Large Cap Mutual Fund
FAQs
Is investing in Unit Linked Insurance Plan (ULIP) a good idea?
ULIPs or Unit Linked Insurance Plans combine the advantages of insurance and investment, and this is what makes them an excellent investment tool.
What are some good investment options in India?
Some good investment options available in India include –
- ULIPs
- PPFs
- Mutual Funds
- Sukanya Samriddhi Account
- Monthly Income Plans
- Tax Saving Fixed Deposits
- Senior Citizens Saving Schemes
What are the best short-term investment options in India?
Some of the best short term investment options available in India are –
- Recurring Deposits
- Fixed Maturity Plan
- Post Office Deposits
- Arbitrage Funds
- Debt Fund
- Fixed Deposits
I want to secure my child’s future by investing in the best child investment plan. How do I go about it?
You can opt for child plans that are specially catered to your needs. If you have a girl child, you can also opt for the Sukanya Samriddhi Yojna.
Is automatic investing (automatic fund allocation) a good idea?
Many investment plans, including ULIP plans, help you in choosing the right investment options. Other investment plans automatically allocate your money into your investment account and ensure that your money is not lying idly in your bank savings account but is already put to work of accumulating returns, whereas ULIP does so with the help of the automatic transfer of money from one fund to another. Automatic investments help us attain our financial objectives considerably faster by reducing discretionary expenditure.
How do you withdraw from investments?
You have the option of making partial systematic withdrawals from your investment plans, depending on the terms and conditions of the investment plan. You can redeem a fixed amount at a specific frequency here. You can also withdraw a lump sum amount by submitting a redemption request based on your needs. In their separate disclosure agreements, some of the best investment schemes provide minimum withdrawal amounts and, in certain cases, a minimum lock-in duration.
How much can I withdraw from my investments?
You have the option of withdrawing funds from your investment plans on a regular basis. The minimum withdrawal amounts for most investment programmes are set in their disclosure forms. As a result, you can withdraw a specific sum from your investments at a certain frequency.
Is buying gold a good investment option?
Gold, according to experts, should be an essential element of your diverse investment portfolio since the price of gold rises when the value of paper investments, such as bonds and stocks, falls. While gold prices might be erratic in the near term, gold has always maintained its long-term worth.
How can I start investing in my early 20s?
Here's how to get started investing in your early twenties :
- Begin accumulating emergency money.
- Determine your investing objectives.
- Contribute to a PPF (Public Provident Fund) or NPS account (National Pension Scheme)
- Begin saving for your retirement now.
- Maintain easy access to short-term savings.
- Invest a part of your savings in long-term investments.
What are a few types of investments in India?
The following are the several investment categories in India :
- Investments in Stocks
- Investing in Fixed Income or Debt
- Instruments of Direct Investment (such as bonds and stocks)
- Instruments of indirect investment (such as mutual funds and ELSS)
What are the modes of investment?
The following are the many ways of investment or assets :
- Stocks equity
- Debt securities or fixed income securities
- Funds that are well-balanced – A diversified portfolio of equity and debt securities
- Funds that are liquid
What is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is a form of bank savings/investment account that guarantees you a fixed rate of return (as an investor). In exchange, you promise not to access or withdraw your invested cash for a set period of time. The interest on FD investments is only due at the conclusion of the investment period. Furthermore, because the investment tenure and interest rate are predetermined, you can immediately calculate the interest you would earn after the period of any fixed deposit investment is completed.
What is Provident Fund (PF)?
The Provident Fund is a mandatory, government-managed retirement savings plan. Employees agree to donate a percentage of their monthly savings to their pension fund through the Provident Fund. The saved amount accumulates over time, and you may withdraw it as a lump payment at the conclusion of your job or at retirement. Your Provident Fund contributions provide a major source of income after retirement.
How can I save money from my salary?
Here are a few ideas to help you save money from your salary :
- Make a budget and start saving right now.
- Determine your financial objectives.
- Increase your tax savings4 under Section 80C.
- Select the appropriate insurance (such as life insurance, health insurance, and critical illness insurance)
- Create an emergency fund.
How to get maximum returns from the fixed deposit?
When you open a Fixed Deposit account, you have the option of selecting an investment duration (or "term"). When you choose a term, you agree to keep your money (in your FD account) for the whole tenure and refrain from accessing or withdrawing it during the specified time period. To earn the most profits from your fixed deposit investments, invest for the longest period of time feasible (FD terms usually range anywhere from one month to five years.)
How much money do I need to retire at the age of 55?
If you want to retire by the age of 55, you should have at least 15 to 20 times your yearly salary saved up. For example, if your annual income is Rs10 lakh, your savings and investments should be in the range of Rs 1.5 to 2 crores.
Are investment plans risk-free?
Every investment strategy in India carries some level of risk, particularly when the rewards are totally based on market swings. Savings accounts, fixed deposits, public provident funds, recurring deposits, post office schemes, and non-equity mutual funds, on the other hand, are some of the low-risk and best investment schemes in India.
What are SIP investments?
SIPs, or Systematic Investing Plans, are one of the greatest investment strategies to consider. A SIP allows you to invest a certain amount of money in mutual funds on a monthly basis, allowing you to develop a financial corpus for the future.
What are examples of short-term investment plans?
Here are some examples of some of the top short-term investing schemes :
- Savings Account
- Recurring Deposit
- Fixed Deposit
- National Savings Certificate
- Money market mutual fund
What are examples of long-term investment plans?
Here are some examples of long-term investment plans in India :
- National Pension Scheme
- Unit Linked Insurance Policy
- Fixed Deposit Equity Funds
- Mutual Funds
- Stocks
- Bonds
- Post office saving scheme
Factors Impacting ULIP Plan Premium
Unit Linked Insurance Policy
An insurance plan which gives benefits both of life insurance as well as investing in different funds consisting of different investment instruments like stocks, money market securities or government bonds. However, the returns are dependent on market performance and the policyholder has to bear the investment risk.
Date Of Commencement Of Risk
It is the date which represents the beginning of Life Cover.
Grace Period
A specified period after a premium payment is due, in which the policyholder may make such payment, and during which the protection of the policy continues
---A period during which the Policyholder can still make the overdue Premium Payment without attracting any interest. Grace period is of 30 days from the original due date as stipulated by regulation and the benefits under the Policy remain unaltered during this period.
Investment Fund Allocation Instruction
It is the instruction given by the Policyholder to allocate his premiums towards the purchase of units in the desired Investment Fund.
Investment Risk/market Fluctuations
The performance of the Investment Fund depends on the financial markets and may increase or decrease. The risk of such fluctuations or uncertainties due to market related factors is called as the Investment Risk.
Lock In Period
It refers to the number of years for which the funds need to be kept invested in the policy and cannot be withdrawn.