Call us
Call us
Thank you for sharing your details. To receive a call from Tata AIA Financial Advisor.
reCAPTCHA is not working.
No relevant search results found.
Investment plans assist you in planning your savings for your future requirements through systematic contributions. The plans provide a range of Read more solutions depending on various financial requirements, while assisting you in saving taxes up to Rs. 46,8001. Certain plans have the potential to generate market-linked returns2 of 32.27%3 along with the advantage of life cover. Other plans are also there with short, medium, and long-term durations, with a minimum investment of ₹1,000/month. Some investment plans also provide option of life cover to secure your family’s future. Read less
Investment plans assist you in Read more planning your savings for your future requirements through systematic contributions. The plans provide a range of solutions depending on various financial requirements, while assisting you in saving taxes up to Rs. 46,8001. Certain plans have the potential to generate market-linked returns2 of 32.27%3 along with the advantage of life cover. Other plans are also there with short, medium, and long-term durations, with a minimum investment of ₹1,000/month. Some investment plans also provide option of life cover to secure your family’s future. Read less
Table of Content
An investment plan is a systematic way of saving and increasing your money in the long term. It helps you decide how much to invest, for how long, and in what instrument, based on your objectives. Certain plans offer tax5 advantages under different provisions, such as Section 80C and 10(10D). Investment amount can begin from as low as ₹1,000/month. Returns would depend on the type of investment plan. For guaranteed plans, returns would be around 4-8% while for market-linked plans, returns may be around 15-30%.
Choosing the right investment plans based on your affordability, risk appetite and future financial goals is important to accomplish them timely. Investment plans help increase your wealth by accounting for the inflation rate. Therefore, it will suffice for future requirements considering the increase in price levels based on inflation.
Some of the best investment plans in India are based on money market instruments and financial securities that help your wealth grow consistently over the long term. However, as the returns are market-linked, you must understand your risk appetite before choosing the right investment plan in India.
Tata AIA
Tata AIA Param Raksha Life Pro +
This advertisement is designed for combination of benefits of following individual and separate products named (1) Tata AIA Smart Sampoorna Raksha Supreme Unit Linked, Non-Participating Individual Life Insurance Plan (UIN: 110L179V02) and (2) Tata AIA Vitality Protect Advance - A Non-Linked, Non- Participating Individual Health Product (UIN: 110N178V01).
Tata AIA
Tata AIA Premier SIP
Tata AIA Premier SIP is a combination of the Tata AIA Smart SIP, a non-participating, unit-linked, individual life insurance savings plan (UIN: 110L174V01), and Tata AIA Vitality Protect Advance, an individual, non-linked, non-participating health insurance plan (UIN: 110N178V01)
With varied investment options in India, you must understand the benefits of investment planning and start early to ascertain the required funds at different stages in your life.
If you are the sole earning member of your family, it is important to have adequate financial resources to secure your family in the event of your unexpected demise. Investment plans can help you create wealth for your family in the long term that can secure their life in your absence.
The financial goals keep varying at different stages in your life. As these financial goals must be accomplished at a future date, the financial planning should account for the inflation rate. The different investment plans in India will help you plan and invest in the available options based on your timelines and help you achieve your goals timely.
The different investment plans assist in wealth creation at different rates subject to the policy terms and market conditions. The higher the risk, the greater the returns earned over the long term.
Flexibility is one of the most important benefits of investment options in India. You can choose the product based on your financial needs, and invest in them regularly at a convenient frequency such as every month, semi-annually or annually, etc.
Some investment plans provide tax5 deductions and exemption benefits that reduce the income tax liability by reducing the taxable income.
30 best Investment ideas in India
India provides an extensive variety of investment plans to cater to various financial requirements—whether for retirement, education for children, or wealth accumulation. The below-mentioned list of 30 investment plans captures the salient characteristics of each scheme.
A government-backed long-term savings plan with a 15-year lock-in.
It pays 7.1% p.a. (Q1 FY25) interest, compounded annually and tax-free.
It can be beneficial to create a retirement corpus or to fund long-term goals securely.
PPF accounts can be extended in increments of five years beyond their date of maturity.
This facility can be a relatively risk-free proposition for risk-averse investors.
An optional extension of the Employee Provident Fund (EPF) where employees can contribute more than the mandatory 12%.
VPF contributions accrue the same interest as EPF, presently 8.25% p.a.
Withdrawals and maturity values are tax-free if kept for 5+ years.
It offers a chance for individuals to contribute to their retirement funds while enjoying EEE (Exempt-Exempt-Exempt) tax5 benefits.
ULIPs combines life insurance with market-linked investments in equity or debt.
ULIPs have a lock-in period of 5 years and provide fund switching according to risk tolerance.
Part of the premium is used to provide life coverage, and the rest is invested in market funds.
They provide flexibility in investment method selection and can be more useful for long-term wealth creation with protection.
A tax-saving mutual fund with a compulsory 3-year lock-in.
Invests mainly in equities, providing a higher potential for returns with market-related risks.
Tax deductible up to ₹1.5 Lakh under Section 80C.
ELSS has the shortest lock-in period among tax-saving schemes, and this makes it a potential choice for aggressive investors.
A fixed income deposit scheme offered by India Post.
Yields 7.7% p.a. (Q1 FY25) interest paid annually, but on maturity, taxed.
Tenure is for 5 years and is tax-exempt5 as per Section 80C.
It may be favoured by risk-averse investors who desire sure potential returns without subjecting themselves to possible market risks.
Fixed deposit in the bank with 5-year lock-in and Section 80C tax exemption.
Provides interest of between 6% and 7.5% p.a., varying with the bank and term.
Premature withdrawal may be barred, and interest earned may be taxed.
It could be an appropriate choice for investors who are looking for sound potential yields with risk exposure at the barest minimum.
For individuals aged 60 years and older.
Potential gains 8.2% p.a. interest, quarterly.
Maximum investment is ₹30 lakh, and the maturity period is 5 years.
Guaranteed by the government, SCSS provides desirable returns and can be used by retirees in preference to seeking periodic income.
A small savings scheme has been launched for girl children below the age of ten.
Provides 8.2% p.a. interest, tax-free and compounded yearly.
Individuals can make a partial withdrawal for education when their child is 18.
This initiative ensures forward-looking planning for a girl's education and marriage, yielding substantial long-term benefits.
Government-backed scheme issued by post offices.
Investments might double after a certain time at a 7.5% annual interest rate.
No tax benefit, but premature withdrawal is allowed under specified conditions.
It is particularly convenient for rural and semi-urban investors seeking secure and long-term investments.
For women and girls available with a lock-in period of 2 years.
Provides a rate of 7.5% p.a., compounded quarterly and paid at maturity.
The highest investment cap is ₹2 Lakh per account holder.
This recently launched scheme allows women to generate short-term savings with assured returns.
These are investment-cum-insurance plans for a child's future.
They pay lump sums either at the policy maturity or on the policyholder's early death.
Premium waivers ensure the plan continues in force even if the insured parent passes away.
These plans ensure there is no break in funding a child's education and future expenses.
Long-term contracts that provide retirement income through annuities or deferred benefits.
You will have the options of lump sums or regular payments after retirement.
They can have life insurance benefits, subject to the chosen plan.
Annuities give economic security and peace of mind in the years after retirement.
A voluntary retirement scheme governed by the Pension Fund Regulatory and Development Authority (PFRDA).
Offers exposure to debt and equity, as well as partial tax benefits5 of up to ₹2 Lakh.
Withdrawals at retirement are half-tax-free; annuity is taxable.
NPS is most appropriate for systematic investors seeking a low-cost, diversified retirement scheme.
Government scheme for unorganised sector workers aged 18 to 40.
Pays a monthly fixed pension of ₹1,000 to ₹5,000 at the age of 60 years.
The government can provide co-contributions to qualifying low-income subscribers.
It promotes pension coverage in the informal sector, providing financial protection after retirement.
Banks and NBFCs provide fixed returns for a particular tenure.
Interest rate ranges between 6% to 8% p.a., and tenors up to 10 years.
FDs are also perceived as low-risk and are insured up to ₹5 Lakh under Deposit Insurance and Credit Guarantee Corporation (DICVG).
They are highly liquid and can be chosen for parking surplus funds without risking capital.
Recurring Deposits are appropriate for salaried workers who prefer regular savings.
They allow you to put a fixed amount every month for a specific period, usually between 6 months and 10 years.
Interest is compounded quarterly and paid at maturity, yielding cumulative returns.
Recurring Deposits (RDs) are an efficient way to develop the savings habit and construct a short-term goal fund, e.g., for foreign travel or buying gadgets.
Premature withdrawal is permitted but is subject to a penalty.
Equity mutual funds invest more than 65% in equities of market capitalisation companies.
They are handled by experienced fund managers, hence can be accessed by investors lacking firsthand market experience.
Whereas they provide high potential benefits, these are also exposed to risk and market uncertainty.
Tools like SIPs (Systematic Investment Plans) offer inexpensive and disciplined investment.
Tax efficiency and long-term capital appreciation make them popular with young investors.
Direct equities investment involves the purchase of shares of listed firms from stock exchanges like the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE).
It has the potential to yield high returns in terms of capital appreciation and dividends with high risk.
This involves understanding financial statements, corporate fundamentals, and market timing.
Although it may be lucrative, it's well-suited for active or veteran investors.
However, you can diversify by investing across themes and sectors to better manage risk.
ETFs are shares of mutual funds sold like stocks on stock exchanges, offering the best of both.
They track indices (such as Nifty 50 or Sensex) or commodities (such as gold or silver), and provide passive and transparent investing.
Expense rates are lower than actively managed funds, and thus ETFs are cost-effective.
They offer liquidity, diversification, and flexibility to enter or exit at any time throughout trading hours.
It can be more appropriate for investors who want to gain broader market exposure with little active management.
Gold has served as a conventional hedge against currency depreciation and inflation in India.
It is normally bought in the form of jewellery, coins, or bars, especially during wedding and festival seasons.
They are subjected to price appreciation only, and this is based on international economic conditions.
It remains a favoured long-term asset for wealth preservation.
SGBs provide a fresh method of investing in gold, without the inconvenience of storage.
They are government securities denominated in grams of gold provided by the RBI.
Besides gold price appreciation, they earn an annual interest of 2.5%, paid semi-annually.
They have an 8-year maturity with redemption at an early date after 5 years.
Capital gains when the SGB matures are tax-free, thereby making SGBs a superior substitute for physical gold.
Real estate remains a desirable investment for long-term capital growth and rental income.
However, its high initial investment and the need for continuous maintenance and legal expenses are drawbacks.
Real Estate Investment Trusts (REITs) solve these issues by offering fractional ownership of commercial property.
They provide liquidity, regular dividend cash flow, and are priced like stocks.
REITs provide investors with access to high-quality real estate with low entry barriers and diversification.
These investments invest money in fixed-income instruments such as government bonds, corporate debentures, and treasury bills.
They provide higher yields than savings accounts and FDs, particularly in declining interest rate environments.
Various types, such as liquid funds, short-term funds, or gilt funds, are appropriate for different investment horizons and risk appetites.
Debt funds are tax-efficient if invested for more than 3 years due to indexation benefits.
They are appropriate for conservative investors seeking stability with modest returns.
Hybrid mutual funds combine equity and debt into one portfolio and thus seek to balance future returns and possible risk.
They can be regarded as more appropriate for moderate investors who want a balanced strategy between aggressive and conservative investments.
They consist of aggressive hybrid (greater equity), conservative hybrid (greater debt), and dynamic asset allocation funds.
The equity component enhances returns, and debt protects against volatility.
They are often used as a starting point for novice investors investing in equity markets.
Bonds are fixed-income instruments in which funds are loaned to the issuers (governments/companies) in exchange for regular interest.
These may be categorised as short-term or long-term investments, each having a varying level of credit risk depending on the issuer.
Government bonds are safest, but corporate bonds may provide higher returns, but at greater risk.
Bond markets also enable pre-maturity trading, thereby providing the scope for capital appreciation.
Bonds diversify a portfolio and provide a certain income, particularly for retirees.
Silver ETFs mirror the price of physical silver and are listed on exchanges such as ordinary stocks.
They enable investors to gain exposure to silver without having to store it physically.
Refunds are based on international silver prices, which are established by industrial consumption and current market patterns.
These ETFs provide a means of diversifying in commodities and hedging inflation.
These investment opportunities can be suitable for high to moderate risk investors who want to diversify their investment portfolio.
InvITs function similarly to mutual funds, but for infrastructure projects like roads, power plants, and telecom towers.
They earn their revenue from tolls, rents, or service charges and distribute part of their revenue as dividends.
SEBI-approved and listed on the exchanges, InvITs provide transparency and liquidity.
They are suitable for income-focused investors who want exposure to the infrastructure market without taking physical property.
They align growth potential with ongoing income and enable diversification of portfolio exposure.
Treasury Bills (T-Bills) are short-term government securities launched by the Government of India to address short-term liquidity.
They are bought at a discount and redeemed at their face value, without the payment of normal interest.
Liquid and safe, they are widely utilised by corporations, banks, and institutions to invest excess funds. They can be invested in by retail investors using the RBI Retail Direct or mutual fund schemes.
They are a suitable low-risk option for short-term investment of funds.
These 7-year bonds carry an interest rate that is reset semi-annually at the prevailing rate of 8.05% p.a.
Interest is paid every six months and paid directly into the investor's bank account.
While the interest earned is taxable, government assistance ensures that the capital is protected.
They are not tradable and not transferable, limiting liquidity but ensuring dedicated savings.
These may be suitable for clients anticipating assured returns with interest rate fluctuations.
A secure savings plan that accrues monthly interest income at 7.4% p.a.
The maximum investment is ₹9 lakh for a single account and ₹15 lakh in joint accounts.
The plan has a lock-in period of 5 years, and the amount of principal is repaid at maturity.
It can be more suitable for conservative investors and retirees who require fixed monthly returns with lower risk.
POMIS is backed by the Government of India, which gives stability and security.
Before making the bigger investment decision, it is important to know the different types of investment plans and understand the features, risk factors, and tax-saving benefits.
High-risk investments have a high probability of price fluctuations during volatile market conditions. In addition, the investment value can be affected to a great extent if there is a political or economic change globally. However, given the high risks involved, these high-risk investments can yield higher returns over the long term.
Therefore, high-risk investments may be a preferable option if you have a high-risk appetite and are looking for long-term capital gains.
The medium-risk investments offer balanced returns. It involves a fair or equal combination of the high-risk and the low-risk fund options. Therefore, the diversified portfolio balances growth and secures your investment and financial goals from the highly volatile financial market.
Low-risk investments provide reasonable and consistent returns over the investment tenure and are not drastically affected by market conditions. Therefore, bears less risk compared to high-risk and medium-risk investments.
Investing is basically to bear risk and return to achieve financial goals. Every investment has some scope of risk, but understanding the relationship between risk and probable returns can guide one in making investment decisions.
Types of Investment Risks
Market Risk:
This risk arises due to a change in the stock market, commodity market, and real estate markets.
Stocks, mutual funds, and exchange-traded funds get impacted by market fluctuations.
Credit Risk:
Risk associated with possible default of the companies or organizations that issues bonds or other debt papers.
Government-backed securities such as PPF, EPF, and RBI Bonds carry very low credit risk.
Inflation Risk:
The possibility that returns will not keep pace with inflation, thereby reducing purchasing power.
Fixed-income investments like FDs, RDs, and PPF are more susceptible to inflation risk.
Liquidity Risk:
The inability to convert an asset into cash without a loss.
Real estate, pension plans, and tax-saving FDs carry high liquidity risk.
Interest Rate Risk:
The effect of fluctuating interest rates on investments.
Debt funds, bonds, and fixed deposits are interest rate sensitive.
Investment returns can be broadly categorized into:
Risk Level |
Suitable Investments |
Low Risk |
PPF, FD, NSC, SCSS, RBI Bonds, Debt Funds |
Moderate Risk |
Balanced Mutual Funds, ULIPs, Tax-Saving FDs, NPS |
High Risk |
Direct Equities, ELSS, ETFs, Real Estate, InvITs |
A well-diversified portfolio ensures risk is spread effectively while optimizing returns. Aligning investments with financial goals and risk tolerance is key to building a strong investment strategy.
Factors To Consider While Choosing Investment Plans
Before choosing an investment plan in India, you must consider certain factors. It will help in making the right financial decision.
Return on investment is the financial benefit from the investment plan against its cost. Therefore, evaluating the returns on investment and the factors that affect the returns is important to ensure you benefit from the investment scheme as expected.
Investment plans based on market-linked returns involve a risk factor. For example, an investment plan with high returns, such as direct equity, involves increased risks. A slight change in the market conditions due to political or economic factors can affect the price of financial securities to a great extent lowering their investment value. Therefore, it is important to consider the risk factor associated with the investment scheme and ensure it is affordable for you, considering your family's financial commitments.
Flexibility is a crucial factor in considering investment plans. For example, the investment scheme should have a flexible premium paying mode and frequency, be liquid enough to manage emergencies, have options to choose between high-risk and low-risk fund options, etc.,
If you regularly invest in an investment plan, you should ensure that the cost is affordable. It should not affect your routine financial expenses and future financial commitments. Making a monthly financial budget and a long-term financial plan, including the financial goals and the investment objectives, will help invest in the financial products comfortably.
Contribution to NPS is deductible under Section 80CCD(1B) by a further ₹50,000.
Benefits of maturity to insurance-linked products such as ULIPs are tax-exempt under Section 10(10D) if specific conditions are fulfilled. For ULIP policies, maturity income will be taxable if annual aggregate premium exceeds ₹2.5 Lakh in a financial year.
Interest accrued on SCSS, NSC, and FDs is tax-deductible unless exempted within the exemption limit.
These tax benefits5 may help you save on taxes as you plan your future financially.
You must have sufficient financial resources to secure your future and the future of your loved ones.
While your savings can help manage an emergency or accomplish a short-term financial goal, they cannot assist in fulfilling your long-term financial goals.
Achieving long-term financial goals requires adequate investment planning considering the inflation rate and future financial needs for wealth creation. Moreover, it requires a systematic investment for multiplying and accumulating your money in the long term.
Therefore, investing in different investment plans and diversifying the portfolio can utilise your income maximally for securing your future by accumulating during the long term.
Investments in financial products and their related returns are based on a timeline. Therefore, the longer the investment is made, the higher the returns.
Before you decide on the best investment plan with high returns, investment tenure, and the time you want to start investing, you must find the timelines required to accomplish your specific financial goals and the funds required. Then, based on these inputs, you can find the investment period, amount, and tenure.
However, the earlier you start investing, the earlier you develop the discipline to invest regularly, and the higher the financial benefits you can conveniently accumulate over the long term.
Financial institutions in India provide the best investment plans for the different categories of investors.
As the investment options in India are many, you should know how to choose the right investment plan for your financial needs. Here are a few steps to help you best in this regard.
Apart from considering the features, benefits, risks, and returns, it is equally important to find the right investment period for your financial goals.
If you target achieving financial goals such as paying for your child's higher education, starting a new business, etc., the investment period is generally for the long term. For example, it can be for a term of 10 years, 12 years, etc.
Investments for achieving long-term goals can bear a high risk as the impact due to short-term volatility will get negated during the long term.
Here are a few long-term investment plans.
Direct equity
Equity Mutual Funds
Gold
Real Estate
Small savings schemes, such as PPF (Public Provident Fund), SCSS (Senior Citizen Savings Scheme), Sukanya Samriddhi Yojana, etc.,
National Pension Scheme
Unit Linked Insurance Plan (ULIP Plan)
Medium-term financial goals are planned for after 3-5 years. It can be paying the down payment for your dream house or car, planning a wedding, etc. Investments for the medium term should have a good balance between risk and returns to ensure consistent returns.
Here are a few investment options for the medium-term investment plan.
Hybrid Funds
Debt Mutual Funds
National Savings Certificate
Post Office Time Deposit
Short-term investment plans are liquidated within 1 to 3 years. However, the investment period can sometimes extend to 5 years based on revised investment decisions.
The short-term investment plans have a lower risk profile, are highly liquid, and provide considerable returns. Some of the common objectives of short-term investment plans are for planning a vacation, receiving returns on idle funds, etc.,
There are various short-term investment options. It would help if you analysed your purpose of investing to choose the best short-term investment plan.
Here are a few short-term investment plans for the different investment tenures.
1 year |
3 years |
5 years |
Fixed Deposits |
Equity Linked Savings Schemes |
Liquid funds |
Recurring Deposits |
Fixed Maturity Plan |
Large Cap Mutual Fund |
Debt Mutual Funds |
Liquid Funds |
Post Office Time Deposit |
Arbitrage Funds |
Fixed Deposit |
ULIP Plan |
Fixed Maturity Plan |
Arbitrage funds |
Post Office Monthly Income Scheme |
Post Office Deposits |
Gold |
Bank Fixed Deposit and Recurring Deposit |
Money Market Instruments |
Short term and Ultra Short-term fund options |
Arbitrage Funds |
Different investment options for various risk profiles and investment tenures exist in India. Therefore, choosing the best investment plan for your individual financial needs should be based on the following factors:
Risk appetite
Financial goals
Affordability
The required return on investment
Required investment period
Here is a detail about the documents required to buy investment plans in India.
Salaried individuals
Latest Form 16
Bank statement for the last 3 months
ITR document for the last two years
Self-employed individuals
Form 26AS
Computation of income and ITR (Income Tax Returns) for the last 2 years not filed in the same year. If the computation of income is not possible, ITR (Income Tax Returns) for the last 3 years not filed in the same year.
Profit and Loss account and Certified Audited balance sheet.
Our experts are happy to help you!
What are some good investment options in India?
Some of the good investment options in India are:
Which investment gives the highest return?
Equity investments can give the highest return in the long term. However, the investment involves high risk considering the market volatility and the global economic and political conditions.
How do you withdraw from investments?
Every investment plan has defined terms and conditions for the withdrawal. For example, partial withdrawal from the ULIP plan is permissible after the 5-year lock-in period. The funds withdrawn will be credited to the investor's account after successfully verifying the withdrawal request.
How can I start investing in my early 20s?
In your early 20s, you will earn more and be less bound by family commitments. Therefore, you can diversify your portfolio with a higher proportion of equity investments. The portfolio can include other investment options such as hybrid and debt mutual funds, real estate, etc. However, the investment plan should be based on your income, financial commitments, and long-term goals.
How can I save money from my salary?
You can save money from your salary by making a detailed financial plan. Firstly, you need to make a monthly budget, including the regular grocery expenses, clothing, medicines, etc., Secondly, find your short-term and long-term financial goals and the timelines to achieve them. Thirdly, find the right investment plans and set aside the required amount for saving and investing for the future by investing in them. Thirdly, ensure to stay within the budget and invest in the chosen investment plan regularly. And finally, revise your investment plan and increase your regular investment based on your salary increments.
Which is the best monthly investment plan?
The best monthly investment plan is based on your financial goals, risk appetite, and affordability. For example, if you are looking for high returns over the long term, you can invest in Equity Mutual Funds, providing monthly investment options. You can also opt for the Unit Linked Insurance Plan with monthly premium payment options. And, if you are a conservative investor seeking investments for retirement needs, you can invest in the PPF (Public Provident Fund) monthly.
Disclaimer
The linked insurance product do not offer any liquidity during the first five years of the contract. The policy holder will not be able to surrender/withdraw the monies invested in linked insurance products completely or partially till the end of the fifth year.
FOR EXISTING POLICY 
FOR NEW POLICY 
10 mins read
