Top 5 Investment Plans in India 2021

When we talk about investment planning or the right investment plans to invest, ones of these words come to mind - intimidating, risky overwhelming, and scary.

New investors always want to make investments in such a way that they get sky-high returns as quickly as possible without the danger of losing principal money. But, high return, low risk doesn't exist.

Most investors want to make investments in such how that they get sky-high returns as quickly as possible without the danger of losing principal money. This is the rationale why many are always on the lookout for top investment plans where they will double their money in few months or years with little or no risk.

Investment planning also helps to in inculcate the habit of disciplined investment among investors so that they accumulate wealth in a long term and achieve their future and financial goals.

The 5 investment plans in which most of the Indians look at while saving for financial goals:

1. PPF (Public Provident Fund)

The Public Provident Fund is a savings-cum-tax-saving instrument in India, introduced by the National Savings Institute of the Ministry of Finance in 1968. 

In this scheme investment of 1.5 lakh per annum is not taxable.

For example; If you are investing in PPF for 1.5 lakh per annum with the tenure of 15 years (which is minimum) at an interest rate of 7.1 % you will get amount of 40.6 lakhs at the end of maturity with a total investment of 22.50 lakh. So it's a very good kind of investment and its tax free( My personal favourite).

This can be extended upto 30 years with a investment of 45 lakhs and earn a maturity amount of 1+ Crore.

2. Mutual Funds:

You have always heard this phrase after every mutual fund advertisement,"mutual funds are subject to market risk please read all the documents carefully before investing". But on the other hand, mutual funds are the best way to invest money and grow them.

They offer a higher interest rate and the Investing amount various from thousands to lakhs. Further classified into debt and equity funds.

3. Systematic Investment Plan:

It is similar to a mutual funds but allows you to invest a small sum regularly in your preferred mutual fund scheme. By activating an SIP, a fixed amount is deducted from your bank account every month, which gets invested in the mutual fund of your choice.

Every time you invest in a mutual fund scheme through an SIP, you purchase a certain number of fund units corresponding to the amount you invested. You don’t need to time the markets when investing through an SIP as you benefit from both bullish and bearish market trends.

4. Direct equity:

When we invest within the equity shares of a corporation , we are, in legal terms buying the ownership of the corporate . the entire amount that a corporation plans to boost is split into small fractions called shares, which have a worth in rupees.

By subscribing to those shares, we get a right to participate in company meetings and voice our opinion on decisions but the important reason why we invest, is to earn divided – which is sort of a reward to us an investor, because it's using our money that the corporate earns a profit, which is now distributed to the owners within the sort of dividend. One also can prefer to hand over the shares – back to the corporate or sell it to a 3rd party for a premium

5. Real estate:

Real estate is generally a great investment option. It can generate ongoing passive income and may be an honest long-term investment if the worth increases over time. You may even use it as a neighbourhood of your overall strategy to start building wealth.

However, you would like to form sure  you're able to start investing in land. For one, you'll got to put down a big amount of cash upfront to start land investing. Buying a home, apartment complex, or piece of land are

often expensive. That’s not to mention the ongoing maintenance costs you’ll be responsible for, as well as the potential for income gaps if you are between tenants for a time.