If you do not have an investment portfolio, it is time you start preparing one. And those who already have one are always seeking out the best investment options. The financial markets in India are replete with investment options that cater to the investment needs of different categories of investors. So, basically, there is something for everyone. 

For instance, ULIP insurance or a Unit-Linked Insurance Plan is a flexible form of market-linked life insurance product that suits investors with different risk profiles and also offers the benefit of life insurance coverage to the investor’s/policyholder’s family. Hence, most investors tend to have at least one ULIP plan in their portfolio and other investments. But apart from ULIPs, there are numerous other investment options in India that you can take a look at here. 
 

What Are the Apt Investment Options for Good Returns?

The best investment options in India can comprise a mix of low-risk and high-risk investments to give you the expected returns. Here are some of the well-known investment options and investment plans in India that you can look into
 

• Unit-Linked Insurance Plan
  
  As a combination of investment and insurance, ULIPs are quite popular among investors seeking market-linked returns2 while getting life insurance coverage for their families. When you buy a ULIP, not only can you choose from a range of fund options for investment, but you can also customise the life insurance policy term, sum assured and premium paying term as per your needs.
  
  ULIPs also offer tax* benefits which can help you save on your taxes*. However, before buying a ULIP, always understand how ULIP charges work, as they may have an impact on your returns.
  
  
• Mutual Funds
  
  Mutual funds are market-linked investment plans but unlike stock market investments where you buy and sell shares regularly. Since mutual funds are managed by professional fund managers, you have a financial expert handling your funds. Mutual funds have flexible investment tenure and also enable SIP (Systematic Investment Plan) payments as per your preference and budget.
  
  One of the best features of mutual funds is the rupee cost averaging, which allows your SIP amount to purchase fewer fund units when the market is high and more units when the market is low. This means you do not have to worry about losses due to market fluctuations.
  
  
• Real Estate
  
  Most people keep saving and investing money to buy the home of their dreams, while some others take loans and pay EMIs once they buy the home. Either way, the point of owning a house is to ensure that you have a secure investment.
  
  Each year, the value of a property appreciates even when the housing market is facing a low. When investing in a home, either for the purpose of earning rent or selling it later, opt for a good location and the necessary  amenities.
  
  
• Gold Investment
  
  Investing in gold has been an age-old practice in India and continues to be one of the most stable investment options in India. Even today, people do not keep gold only for its ornamental value but also for investment purposes. In case of extreme emergencies, people may choose to sell some of their gold for cash. Nowadays, you can also have an online account with a digital gold service provider and keep buying small amounts of gold in digital form.
  
  Once the investment tenure ends, the total amount of digital gold purchased can be delivered to you or turned into jewellery, as per your preference.
  

Low-Risk Investment

• Fixed Deposits/Recurring Deposits
  
  Fixed Deposits or FDs offer risk-free assured returns on the amount you invest in your bank’s FD account. You can simply invest a lump sum amount for a tenure of your preference and earn a fixed interest rate that will be compounded at regular intervals. In recurring deposits, you can invest a fixed amount of money each month for a tenure of 6 months to 10 years.
  
  
• Senior Citizen Savings Scheme
  
  This investment plan in India is designed to help senior citizens in India invest and accumulate a financial corpus for their retirement needs. The Government of India introduced this investment scheme that can be opened with a minimum investment of ₹1000 up to ₹15 Lakh and offers senior citizens interest payments on a quarterly basis. The SCSS has an interest rate of 7.4% for the quarter ending March 31, 2022. 
  
  
• National Pension System
  
  The National Pension System, regulated by the Pension Fund Regulatory and Development Authority (PFRDA), enables you to register to the scheme with your mobile number, Aadhar card and PAN card. This is one of the good investment plans in India, where you need to invest in the NPS until 60 years of age, making an investment of ₹500 or ₹1,000 each year for a Tier I account or ₹250 for a Tier II account. However, there is no limit on the maximum contribution to the NPS.
   

Importance of Investment Plans

Though people have moved to invest in savings schemes, life insurance, fixed-income securities and market-linked instruments, they still have savings accounts in their banks. However, these savings accounts are not their primary form of investment; rather, these funds are kept aside securely for future purposes.

Unlike bank savings, investments allow your money to grow through compound interest, where the interest on your principal investment amount also earns interest annually. Having an investment plan makes it easier for you to choose which instrument, scheme or investment format works apt for meeting your goals.

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