Best Small Investment Plans in India

When it comes to an investment, the investors have a different approach, which is generally on the premise of the financial requirements, goals/objectives and risk appetite. Some investors are capable enough to take the risk so that they can achieve high returns. Likewise, there are investors in the market who do not wish to undertake high risk.

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7.7 Crore

Registered Consumer

Insurance Partners

4.2 Crore

Policies Sold

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.

Well, the investment market is open to both sorts of investors.

In this article, let us discuss the various small investment plans for those investors who are looking forward to protecting their money but at the same times are looking for the investment avenues that would help them to accrue handsome returns.

First things first,

What Does Small Investment Plan^†† Mean?

To begin with, let us get clear with this thing that the term small investment plans is not categorized by any of the institutes of investment.

As the term suggests, it means that with small investment plans you can invest in a scheme with small amounts and that will help you to earn decent returns. Such type of plans is suitable for those who have a desire to invest the money but are not convinced with the market’s high-risk portfolio and that too with investing lump sum amount.

Now, have a look at the table below, which comprises of some small investment plans that will help you to have a better understanding of where to invest the money.

Small Investment Plan Options	Initial Deposit (Minimum)	Investment Amount (Minimum)
National Savings Certificate	Rs 100	Rs 100
Post Office Monthly Income Scheme	Rs 1500	Rs 1500
Public Provident Fund	Rs 100	Rs 500
Senior Citizens Saving Scheme	Rs 1000	Rs 1000
Systematic Investment Plan	It differs from fund to fund Rs 100/ Rs 500	It differs from fund to fund Rs 100/ Rs 500

Disclaimer: †† 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 done in alphabetical order (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

Let us a quick understanding of each of the small investment plans:

Systematic Investment Plan

Today the investors are looking forward to plans that can help to bring high returns. Investing in a systematic investment plan permits an individual to deposit a specific sum in a scheme of mutual funds at a certain interval of time. It is to be noted that SIP is not a mutual fund scheme but the way of investment into the mutual fund as per the choice. Anyone who wishes to invest in the SIP can initiate with an amount of Rs 500 or Rs 100.

Public Provident Fund

When it comes to the small investment plan, the public provident fund is the preferred and opulent choice. This is so because it offers three-fold advantages, which are saved for retirement, guaranteed returns and investment security. The public provident fund is backed by the government and is beneficial with a long-term savings perspective. The PPF account can be opened with a deposit of Rs 100, however, the interest rates for the same is revised by the central government of India.

People Also Read: SIP Calculator

Senior Citizens Saving Scheme

Putting resources into SCSS is a decent open door for senior residents over 60 years to bring in cash. This is a successful and long haul sparing alternative, which offers security and included highlights that are generally connected with any legislature supported reserve funds or venture plot. These plans are accessible through affirmed banks and post workplaces across India. The term of this plan is 5 years with the choice to expand it for 3 additional years. To expand the plan for an additional 3 years after the culmination of the 5-year term, the financial specialist is required to present the appropriately filled Form B for the expansion of the plan. Just a single expansion is permitted, and such expanded records can be shut following one year of augmentation with no punishment.

Post Office Monthly Income Scheme

The post office monthly income scheme is formulated by the Indian post and is one of the best small investment options for any investor. Within this scheme, the investor needs to save aside a certain amount every month after that the interest will be added to the investment with the applicable rate and then will be paid to depositor every month. The interest rates are fixed by the government and are subject to revise every quarter on the premise of the yielded returns by the government bonds of the equivalent term.

National Savings Certificate

The National Savings Certificate is one fixed income scheme of investment, which can be opened with any of the Indian post offices. It is essentially a savings bond, which is the initiative of the Indian government that encourages small investors to invest the money and save on income tax. A fixed-pay tool like post offices fixed deposits and public provident fund, this arrangement likewise is a safe and by and large safe thing. You can purchase it from the nearest post office in either your name or for the minor or with any other who is an adult as common assistance. They go with a fixed maturity time-frame of five years. There is no higher limit on the obtaining of NSCs, in any case, the only investment till Rs.1.5 lakh can pick up you with a tax reduction within Section 80C as per the Income Tax Act. These certificates likewise earn a fixed interest, which is presently at a rate of 6.8 per cent every year.

Wrapping it Up

Now, that you are aware of the various small investment plans available in the market make a wise choice. In case you are confused in regards to any of the above-mentioned plans, get in touch with the financial expert.

You can also look for information upon small investment plans online. In these tough times, investment is important and nobody has seen tomorrow and adversity can happen at any point in time. Therefore, do not wait for the last moment or the right time. Make your investment decisions soon but not in a hurry. Give time to it, think about it and go with the small investment plan that is not a burden on your pocket.

†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).