Investing diligently can help you grow wealth and build a significant corpus for future financial requirements. However, it is crucial to draft an investment strategy that can suit your financial objectives as well as risk appetite.
Some investors may prefer to invest in guaranteed plans that provide fixed returns, while others may be ready to take risks.
Are you seeking help with where to invest 1 lakh rupees to get a better return? There is no one-size-fits-all answer to this question. Analysing various factors, such as your investment horizon, risk appetite, and investment objective, can help you choose from the different types of investment options.
In this guide, you will explore various avenues and learn where to invest money for good returns as per your investment profile. Keep reading.
Fixed Deposits (FDs) are among the safest and most popular investment instruments. They allow you to invest fixed amounts for specified tenures and earn guaranteed returns on maturity. The returns are, however, lower than market-linked instruments.
To invest 1 lakh in a fixed deposit, you can open an FD account with a bank or a Non-Banking Financial Corporation (NBFC). Make sure to compare interest rates and tenure options to maximise your returns.
The Public Provident Fund (PPF) is a government-backed, long-term investment plan. It offers guaranteed returns along with tax exemptions under section 80C of the Income Tax Act. The Government of India revises the PPF interest rate from time to time, and the current rate (for FY 2024-25) is 7.1% per annum, compounded annually.
You can open a PPF account with a bank or a post office and invest up to Rs. 1.5 lakh in a financial year. The account has an initial lock-in period of 15 years, you can extend it in five-year increments thereafter.
Historically, investments in stocks have earned the highest returns compared to other investment avenues. You can add shares of promising companies to your investment portfolio and wait for their price appreciation to generate profits. You can open a Demat account with a stockbroker and place buy or sell orders on the stock exchanges.
However, investments in stocks are subjected to high volatility and market risks. Additionally, it requires a proper understanding of market trends and the underlying company’s fundamentals.
Mutual funds have emerged as one of the most popular investment options with high returns. They pool funds from multiple investors with common financial objectives and invest them in stocks, bonds, and other money-market avenues. You can choose between equity, debt, or hybrid funds based on your investment horizon and risk tolerance.
There are two popular ways to invest in a mutual fund – SIP (Systematic Investment Plan) and lump sum. You can choose to make a one lakh investment as a lump sum in a mutual fund scheme or invest it in smaller amounts periodically through the SIP mode.
Unit Linked Insurance Plans (ULIPs) are hybrid instruments that offer the dual benefits of insurance and investment. When you invest in ULIP plans, a portion of your investment is used to provide you with a life insurance cover, and the remaining amount is invested in the stock market via equity, debt, or hybrid funds.
Among the different types of life insurance policies available in the market, the ULIP plan can help you with goal-based investment planning. Apart from high returns, they also provide tax benefits under sections 80C and 10 (10D) of the Income Tax Act.
You can explore the above-mentioned investment ideas to invest ₹1 lakh based on your risk tolerance, financial goals, and investment horizon. You can also take the help of a financial consultant for more precise advice.
PNB MetLife offers a range of investment and savings plans to help you plan for your financial goals efficiently.
Yes. You can invest in multiple instruments and create a well-diversified portfolio.
Market-linked instruments, such as stocks, mutual funds and ULIPs, can provide the best returns.
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
PNB MetLife India Insurance Company Limited
Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
IRDAI Registration number 117 | CIN U66010KA2001PLC028883
For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details.
Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.
| Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers! IRDAI or its officials is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint. |
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