There is a huge chunk of middle class population in India. For them savings and putting their money in the best investment plan is of the utmost priority. But it also creates a challenge for them as they are not aware which one is the best. Economy is booming but so are instabilities, advancements, financial crisis and desire to get financial security. This is the right time where we can sit and ponder over the investment plan in India for middle class that will maximize the returns.
As of 2024, the government of India has launched many investment plans that have the potential for huge returns. Likewise, many non-government plans are also on the rise. We know risk equals rewards. So, let’s get started on the 5 top investments in 2024.
Best Investment Plan: Top Investments in 2024
Here are Top 5 Investment Plans in 2024, that you can consider:
1. Public Provident Fund (PPF): Best for Investors with Long-term Goals
PPF i.e. the Public Provident Fund is one of the safest and risk-free investment plans backed by the government. Currently the interest rate is 7.1%. There is a lock-in period of 15 years and one can withdraw after it. It is ideal for long-term investments.
Why it’s good for middle class:
- It is least-risk investment option as is it backed by the government
- You can claim a deduction under 80C. Hence, good for tax benefits.
- Interest is also tax free and it is compounded annually.
2. Mutual Funds: Best for Investors who want Growth Potential and Medium Risks
Have you heard of SIPs? It is Systematic Investment Plan (SIP) wherein you invest money regularly at a decided tenure i.e. every month, bi-monthly, quarterly or even annually. It makes managing money easier and you get the benefit of averaging cost.
Why it’s good for middle class:
- You can start with as low as 100/-. Thus, flexibility motivates people to take the opportunity without the fear of losing it.
- Mutual funds are of various types- Equity, Debt, Hybrid, Tax savings and more. So, based on your risk appetite you can choose any.
- Equity mutual funds provide a lot of returns as compared to other types.
3. National Pension Scheme (NPS): Best for Investors who want a Retirement Corpus
NPS is a retirement investment plan wherein individuals can save money for their retirement and get tax benefits as well.
Why it’s good for middle class:
- Whatever you contribute to NPS can be claimed as a deduction under 80C as well as 80CCD(1B) for an extra 50,000/-.
- Under NPS you get many options like equity, government securities, corporate bonds etc.
- Investing in this plan means you will get a regular income after your retirement.
4. Fixed Deposits (FD): Best Investment Plan for Conservative Investors
Fixed Deposits (FD) is a very popular opinion among the middle-class families in India. Under this plan, you deposit a fixed sum of money with banks and it is locked for a certain period. You will get interest on your deposit at a pre-decided rate.
Why it’s good for middle class:
- Returns are fixed and predetermined. There are no risks of not getting interest. Technically a very low risk plan.
- You can decide the period/tenure on your own. It can be as short as 6 months and as long as 5 years.
- Nowadays, banks are offering loans and credit cards based on your FD amounts. So, it is another added advantage. In fact there is no need to liquidate the deposit.
5. Real Estate Investment: Best for Investors looking for Long-Term Investments
While many middle class investors may not consider it as an investment option, it is one plan wherein you can get maximum returns. Provided you invest right. Once you put your money in real-estate, it will grow over time and your wealth will start building.
Why it’s good for middle class:
- Real-estate often grows and appreciates with time and gives multiple-folds returns to investors.
- It is also a good option to get passive income in the form of rent.
- You can claim home loan interest & municipal taxes as a deduction.
Best Investment Plan 2024: Final Thoughts
Choosing the best investment plan needs careful consideration of what your financial goals are, your risk appetite and time frame. For every middle-class family in India, putting money anywhere is a big step. Hence, safety, tax benefits and the growth potential are three top factors they consider.
If you are planning for your retirement, student education or just want to fulfill your financial goals, then the investment options like FD, Mutual Funds etc are a good start.
Don’t forget to consult a professional for a tailored investment strategy. Happy Investing!
If you have any questions, feel free to comment down below!