Best Investment Plans for 5 years

Each one of us aspires to become rich someday. This is surely a dream, which is dreamt by almost everyone, however, only some are fortunate enough to walk in the footsteps of becoming rich and pursue the path to wealth. If you are somebody who thinks that becoming rich is impossible and you will have to move mountains or so, then you are mistaken. To become rich, it is important that build a financial corpus and put your money in the best investment options. Therefore, it is important to make the money work, which is not being used and you can generate income that will help you to create wealth in a longer perspective.

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7.7 Crore

Registered Consumer

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Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

So it is time that you focus on building the corpus and opt for the best investment plans for 5-years. The primary thing to become rich is that one needs to be financially secure.

Which are the Best Investment Plans for 5-years in India?

Anyone who is looking forward to playing safe and likewise accumulating corpus should opt for the best investment plans for 5-years. The highlight of investing in an investment for the short-term is that you need not lockdown a sum for a longer time.

Listed below are some of the best investment plans for 5-years that you should consider investing:

ULIPs

How many investment options these days offer multiple benefits? Unit Linked Insurance Plans does that for you. With features and benefits more than any other investment option available in India, ULIPs have emerged as a reliable solution for wealth creation in the recent past.

Here are some of the primary features that ULIPs offer:
- ULIPs come with a dual benefit of insurance plus investment.
- Tax exemption benefits up to Rs. 1.5 lakhs are offered under Section 80C of the Income Tax Act, 1961.
- ULIPs are the only investment options that offer easy switching between various funds.
- Redirection of premium is available.
- Investors can make partial withdrawals after the completion of the lock-in period.
- Beneficial for low to medium risk-taking investors with limited market knowledge.
Traditional Plans

Traditional, as the name suggests, is the oldest form of insurance plan that offers benefits like:
- Fixed-income returns
- Risk cover
- Life protection
- Tax benefits
Best suited for the investors not willing to take any risks, Traditional Plans provides the total Sum Assured along with a vested or guaranteed bonus at the time of maturity of the plan. The main highlight of the Traditional Plans is that the investor down not have to follow the market status and only enjoys maximum returns offered under the plan.
Recurring Deposits:

It is one of the safest ways in terms of investment. It is perfectly suitable for those individuals who do not wish to invest a lump sum amount but are looking towards investing a sum every month. In case you are looking forward to investing in an RD, it is simple you can either opt for a bank RD or can go with a postal RD. Most likely, the bank provides 6 months of minimum tenure and 10 years to the maximum for an RD. The interest that will be received on the RD will be taxable as per the existing tax slab.
Monthly Income Schemes:

When it comes to investing in the best investment plans for 5-years you can also think of investing in a monthly income scheme. It is ideal for those individuals who are looking for an option for a fixed sum every month a postal MIP should be considered. Mostly the funds invest about 10 percent to 20 percent of a specific portfolio in equity and the remaining in higher duration debt instruments, which makes it a bit risky when compared to any of the debt funds.
Fixed Deposits:

Fixed deposits, which is not a new concept and has been one of the most opulent and preferred choices for every investor. Today investing in an FD is no more a task and can be done even online, which makes it even more convenient for the investors to handle. In case an investor needs instant cash it can be easily redeemed without much hassle and you will have the amount in your bank account. The returns on the fixed deposits are taxable as per the existing tax slab.
Savings Account:

Yes, a savings account is one ideal and most secure way to save your hard-earned money and even earn from the equivalent. The best part of a saving account is that you can withdraw the money at any point in time. The key objective in such a case is no earning but liquidity. Besides, in these cases, a 4% to 7% return can be expected from the savings account, however, it may vary from bank to bank. It is also important for you to have an understanding of Section 80TTA wherein a HUF or an individual can claim Rs 10, 000 for a deduction upon the interest that is earned from a savings account. And when the amount is more than Rs 10, 000 then the interest income will be referred to as income from other sources and will be taxed as per the existing tax slab, however, no TDS will be charged on such interest earned.
Liquid Funds:

There are a couple of types of funds that individuals, for the most part, invest in transient government protections and declarations of stores. Such investments are a protected method of contributing. They permit you to enter and exit whenever at whatever point you need. Such assets don't convey any leave load. Try not to attempt to put your whole crisis assets into such assets. That is because much time recovery takes very nearly two days. Besides, ATM cards likewise convey as far as possible.

Benefits of Best Investment Plans for 5-years

Listed below are some major benefits of best investment plans for 5-years:

Pliability:

This is one essential aspect wherein the short-term funds take away all the light and praise. A short-term investment option offers the investor the flexibility to opt for the funding at a small interval of time positively. The amount of investment is not mostly tied up when compared to long-term funding. Moreover, the investor can likewise easily invest the returns to some other alternatives.
Heterogeneity:

Pliability is similarly a subrange of diversification. For the most part, the investment sum in speedy term venture options is a lot less in contrast with long term investment. This allows the investment to make ventures the extra sum in a couple of other investment choices. Short-term investment encourages building an alternate portfolio and not, at this point all the sum is coordinated to the least complex one other option.
Risk:

The heterogeneity enables the investor to hedge the risk. Now the amount is scattered to many other asset lessons, which are risk-related making it spread. However, the return of one funding could be sustained with decent return ways.

Why Look for Best Investment Plans for 5-years?

Today, the Indian market is bombarded with different types of investment plan options. Therefore, choosing the best investment option in 2023 becomes a tedious task. Besides, there are many options, which are framed on the premise of tenure.

There are times when most people do not opt for long-term investment options and look for short-term investment options, which provide good returns within a short timeframe. When we talk about short-term investment options it implies that to invest for a short period, which could be from 6 months to 5-years.

However, investing in options for 6 months, a year or so will not get you good returns. So, if you are looking forward to getting good returns, you should consider investing in the best investment plans for at least 5-years in India in the year 2023.

As discussed above, with a plethora of short-investment options available in the market, it becomes daunting to lock down the best investment plan for 5-years. Now, before you decide on the investment options let us quickly take a quick understanding of the benefits of the best investment plans for 5-years.

Wrapping it Up

The golden rule of choosing the best investment plans for 5-years is to have a proper understanding of all the investment options available in the market. It is important to give time and take a thorough knowledge of each before you make the smart decision of investing to accumulate wealth for the future.

For the greater part of the investors, the reason for the investment may shift depending as far as the money related goal, period, and hazard levels, so forward. In this manner, to bring in the cash growth; an individual needs to put resources into savvy investment choices that can create worthwhile returns in the long term.

Likewise, as a financial specialist, you ought not to get befuddled among investment and savings. While savings is considered as a detached strategy for riches assortment, notwithstanding this, splendid investment methods can help you in making richer.

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Past 10 Years' annualised returns as on 01-12-2024

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%

¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.

**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).