Best Investment Plan In India for Middle Class

Middle class families form a major crux of Indian population. As per the Government’s data, around 45% of the 1.3 billion people living in India belong to the middle class. Considering this, many investment instruments have been introduced by the government as well as non-government entities to help middle class families with their financial planning.Let’s have a look at some of the best among them.

PPF is one of the most popular investment options among the lower-and-middle-class section of the Indian population. You can open a PPF account with any post office or authorised bank and start investing in it with as low as Rs. 100 per year to earn guaranteed, tax-free returns. A PPF account has a minimum lock-in period of 15 years.

Mutual funds are a very lucrative investment option, meant for all types of investors. Some mutual funds allow you to invest in it with as low as Rs. 100 per month. Though investing in mutual funds carries a fair bit of risk, it is historically known to provide better returns than most of the fixed-return investment instruments.

NPS is one of the best government-backed investment schemes that is aimed at offering retirement solutions for the citizens of India. Depending on the investor’s preference, it invests the money in equity, bonds, government securities, and alternative investment avenues. You can withdraw your investments in NPS only after you attain the age of 60.

Fixed deposits are a traditional investment instrument that provides guaranteed returns to the investor. Fixed Deposits are mainly meant for conservative investors with very low to zero risk appetite. You can purchase a fixed deposit of your preferred duration, varying from 7 days to 10 years, from any of the banks or post offices.

A ULIP is another popular investment tool offered by the insurance companies. It provides dual benefits of insurance as well as investment under a single integrated plan. With ULIPs, a part of the premium paid by the investor is invested in equity, debt, or hybrid funds and the other part is used to provide life insurance cover to him/her.

Government of India was issuing 8% savings bonds that were taxable until the year 2003. Then it got replaced with 7.75% taxable bonds, that come with a tenure of seven years. RBI bonds are available in both physical as well as Dematformat. To Conclude Apart from the above-mentioned options, there are various other investment instruments where you can invest your money such as Gold ETFs, Post Office Monthly Income Scheme, RBI Bonds, and Senior Citizens Savings Scheme. However, it’s prudent to consider your financial goals, investment horizon, and risk appetite before investing your hard-earned money in any investment avenue.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.