Best Investment Plans for a 1-Year, 3-Year, and 5-Year Tenure

Fixed Deposits

If you are looking for an investment plan that typically comes with low risk and stable returns, then fixed deposits are worth exploring.

What do you need to know?

• FDs have different tenures ranging from seven days to 10 years.
• You have the option to renew your FD upon maturity.
• According to the Deposit Insurance and Credit Guarantee Corporation rules, as a depositor under this investment insurance, up to a maximum of ₹5 lakh is guaranteed on both principal and interest amount.

Recurring Deposits

A recurring deposit comes in super handy if you are looking for a short-term investment ranging from six months to 12 months. (Though your RD can go up to a period of 10 years)

What do you need to know?

• You have to invest a fixed amount for a fixed period until maturity.
• Upon maturity, a lump sum amount is paid.
• The interest rate is fixed and does not change until maturity.

Debt Mutual Funds

Debt mutual funds are worth exploring as they are typically investments made in fixed-income securities for stability.

What do you need to know?

• Debt mutual funds include corporate bonds, commercial paper, certificates of deposit, etc.
• These funds come with liquidity and can be redeemed, and the units under that mutual fund can be redeemed.

Note: Remember that the investments made in certain specific debt mutual funds on or before April 1, 2023, are taxed as per your income slab upon redemption and for investments made post March 31, 2023, the taxation is applicable according to the holding period of the mutual fund scheme.

Investing in a 3-Year Plan: Best Options to Explore

Investing in a mid-term investment plan is a reliable option to meet your financial goals in the next 3 years or even extend it beyond if required. Let’s take a look.

ELSS

Equity Linked Savings Scheme or ELSS type of mutual fund that combines the benefits of tax inductions and wealth accumulation in the long run.

What do you need to know?

• ELSS is the only type of mutual fund that comes with tax deductions.
• ELSS has a lock-in of three years.
• You can claim tax deductions under section 80C of the Income Tax Act.

Mutual Funds

Mutual funds are a type of investment instrument that pools money from different investors to invest in a basket of different assets. These funds are managed by professional fund managers.

What do you need to know?

• You can invest in short-duration debt funds for your three-year financial goals.
• Equity funds, debt funds, hybrid funds or liquid funds are some types of mutual funds to explore.
• The lock-in period for mutual funds varies depending on the mutual fund house.

Gold

Investing in gold has long been a reliable option, as historically the value of gold has shown impressive numbers.

What do you need to know?

• You can invest in gold bonds, gold funds, digital gold, etc.
• Gold sold after holding for three years or more is liable for 20.8% long-term capital gains tax with indexation benefit.
• Gold sold before three years comes under short-term capital gains and is taxed according to your tax slab.

Investing in a 5-Year Plan: Best Options to Explore

At Jio Insurance Broking, you can find a wide array of investment plans for 5 years, so let’s take a look.

National Savings Certificates

The National Saving Certificate is a type of fixed-income investment scheme backed by the government. Typically, NSC functions in the same way as a bank deposit.

What do you need to know?

• National Saving Certificate comes with a lock-in period of five years.
• You can claim tax benefits under the National Savings Certificates.
• The interest rate paid on the deposit of investment is decided by the government, and at present it is 6.8%.

National Pension Scheme

The national pension scheme is a government bank investment plan that is regulated by the Pension Fund Regulatory and Development Authority.

What do you need to know?

• Any person between the ages of 18 to 65 years can invest in NPS.
• On maturity, 40% of the total corpus is used for purchasing annuity from any life insurance company, and the rest is paid in a lump sum.
• You can claim tax benefits under sections 80C and 80CCD of the Income Tax Act.

Life Insurance Plans

You can also invest in a life insurance plan that comes with a dual benefit of creating life cover and the benefit of investment.

What do you need to know?

• Unit-linked Insurance Plan combines the benefits of life cover and investment.
• A part of the premium you pay goes into life cover, and the rest is invested in the asset of your choice.
• ULIPs come with a lock-in of 5 years.

Over to You

Whether you are saving for purchasing a car next year, buying a house in three or building a sizeable corpus in five or more years, there is an investment plan in store for you. All you need to do is head to Jio Insurance Broking and explore the best investment plans available in terms of tenure, liquidity, returns and more.