Investment Plans

• Fixed Deposits:  Fixed deposits (FDs) in India are popular investment options offering steady returns, offered by banks and non-banking financial companies (NBFCs), FDs provide assured returns at fixed interest rates ranging from around 2.5% to 7% depending on the tenure and the financial institution.
• Sukanya Samriddhi Yojana: Sukanya Samriddhi Yojana is a government-backed savings scheme in India aimed at promoting the welfare of girl children. Launched under the Beti Bachao, Beti Padhao campaign, it offers attractive interest rates and tax benefits. Parents can open accounts for girls aged 10 or below, with a minimum deposit of Rs. 250 and a maximum of Rs. 1.5 lakh annually.
• Public Provident Fund (PPF): The Public Provident Fund (PPF) is a government-backed savings scheme offering attractive interest rates and tax benefits. Established in 1968, it aims to encourage long-term savings among citizens. Investors can deposit up to Rs. 1.5 lakh annually, with a maturity period of 15 years.
• Senior Citizen Savings Scheme (SCSS):  The Senior Citizen Savings Scheme (SCSS) in India is a government-backed savings scheme designed for individuals aged 60 and above. Launched in 2004, this scheme has a maximum investment limit of Rs. 15 lakhs and a maturity period of 5 years, extendable for another 3 years.
• National Pension Scheme (NPS): The National Pension Scheme (NPS) is a voluntary, contributory pension system established by the government. It aims to provide retirement income to citizens. NPS offers flexibility in investment choices and tax benefits, making it a popular retirement planning option among individuals across various income groups in India.
• Post Office Monthly Income Scheme (POMIS): The Post Office Monthly Income Scheme (POMIS) offers individuals a fixed monthly income by investing in a lump sum amount. Investors can deposit a maximum of Rs. 4.5 lakhs in a single account, or Rs. 9 lakhs in a joint account, and makes it the best investment plan for monthly income.
• National Savings Certificate (NSC): The National Savings Certificate (NSC) is a government-supported investment program that offers fixed-income returns. It offers attractive interest rates, typically around 6.8% to 7.1% compounded annually. The investment matures after 5 or 10 years, providing a guaranteed return. The interest earned through the National Savings Certificate (NSC) is eligible for tax deductions under Section 80C of the Income Tax Act.
• Gold: Gold investment plan remains an important investment portfolio, with its value increasing by around 25% in the past five years. Investors are drawn to various forms of gold, such as physical gold, gold ETFs, and the growing digital gold sector. Over the years, gold has provided an average yearly return of 10% since 1971, surpassing major stock indices and acting as a reliable hedge against inflation. Due to these factors, gold is widely regarded as a top choice for investors.
• Real Estate: Real estate can be a suitable choice for investors who are cautious about taking risks. Throughout history, Indians have shown a strong preference for real estate as an investment. Many investors favor purchasing land or apartments over other available investment opportunities. Although real estate is popular, experts suggest that options like ULIPs, stocks, and mutual funds have higher potential for returns.
• RBI Taxable Bonds: RBI taxable bonds provide investors with a secure and steady source of income through fixed-income investments. These bonds, issued by the Reserve Bank of India and backed by the Indian government, guarantee the principal amount and offer regular interest payments. With a current interest rate of 8.05%, these bonds offer higher returns than most fixed deposits available in the market.

Medium Risk Investment

Medium-risk investment options carry a moderate level of risk and offer the potential for higher returns compared to low-risk investments like savings accounts or money market funds.

• Monthly Income Plans: Monthly Income Plans (MIPs) are investment schemes offered by mutual funds that aim to provide investors with a regular income stream. These plans typically allocate a portion of funds to debt instruments like bonds and government securities, while also investing in equities for potential capital appreciation. MIPs have historically offered returns ranging from 7% to 10% annually, making them attractive options for investors seeking steady income with moderate risk exposure.
• Hybrid-Debt-Oriented Funds: Hybrid-debt-oriented funds combine debt and equity instruments to balance risk and return. These funds typically invest a significant portion, around 65-80%, in debt securities while allocating the rest to equities. Offering stable returns with moderate risk, they attract conservative investors seeking capital appreciation.
• Arbitrage Funds: Arbitrage funds are mutual funds that exploit price differentials in the cash and derivatives segments of the equity market to generate returns. They aim to offer low-risk investments with relatively stable returns. The average annualized returns of arbitrage funds in India ranged from 4% to 6%, outperforming traditional debt funds.
• Exchange-Traded Funds (ETFs):  Exchange-Traded Funds (ETFs) in India have seen significant growth, with assets under management (AUM) surpassing Rs. 3 lakh crore. ETFs offer investors diversified exposure to various asset classes, including equities, bonds, and commodities while trading on stock exchanges like NSE and BSE.

High-Risk Investment

A high-risk investment option refers to investments that have a higher potential for losses but also higher potential returns. While high-risk investments can be rewarding, they also come with a greater chance of losing money.

• Unit Linked Insurance Plans (ULIPs): Unit Linked Insurance Plans (ULIPs) are hybrid financial products that offer both insurance and investment components. They allocate premiums into various investment funds such as equity, debt, or balanced funds. ULIP provides flexibility in investment choices and tax benefits under Section 80C of the Income Tax Act, making them attractive to investors seeking both insurance coverage and wealth accumulation.
• Mutual Funds:  Mutual funds in India have seen exponential growth, with assets under management (AUM) reaching Rs. 31.18 trillion as of December 2023. These funds offer diverse investment options catering to varying risk appetites and financial goals of investors. Equity funds remain popular, constituting a significant portion of total AUM, followed by debt and hybrid funds.
• Stock Market Investments: Investing in the Indian stock market offers promising opportunities for economic growth. With the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) as major players, investors can diversify portfolios across various sectors like technology, finance, and pharmaceuticals.
• Initial Public Offerings (IPOs): In India, Initial Public Offerings (IPOs) have raised in recent years, reflecting the country's economic growth and investor interest. According to data from the Securities and Exchange Board of India (SEBI), there were over 50 IPOs launched in 2023, raising a total of approximately $10 billion. This trend shows India's attractiveness as a destination for capital investment, driven by a diverse range of industries seeking expansion opportunities.