Which Is the Best Investment Plan in India for the Middle Class?

Several investment plans are available, but finding the best plan for middle-class investors who have limited incomes and are looking for ways to make wealth within their budget is challenging.

In this article, you will learn which are the best investment options for middle-class investors.

Which is the Best Investment Plan in India for Middle-Class

1. Fixed Deposit

   Fixed deposit, or FD, is the safest investment option for middle-class investors. In a fixed deposit investment plan, an individual invests a lump-sum amount in the bank for a fixed period. On this deposit, they earn a fixed interest set at the time of opening the fixed deposit account.
   
   Key Features of Fixed Deposits:
   • The safest investment option with a deposit amount of 5 lakhs
   • Flexible tenure option as per investor’s financial goals
   • Easy to invest with a simple FD account opening procedure

2. National Pension Schemes (NPS)

   When it comes to the question of which investment is the best for retirement plans, then the National Pension Scheme (NPS) launched by the government is considered the best. It is a pension scheme for employees from public, private, and unorganised sectors to provide them with a regular income post-retirement.
   
   Key Features of NPS:
   • Tax benefits under sections 80CCD and 80CCE.
   • Flexibility to choose contribution amount as per risk-taking appetite.
   • Regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

3. Unit Linked Investment Plan (ULIP)

   Are you wondering which policy is best for investment? Then, United Link Investment Plans (ULIPs) should be your first choice. ULIP plans are insurance plans that provide the dual benefit of an investment plan to fulfil your financial goals and life insurance protection for your family in case of unfortunate events.
   It happens as the premium paid towards ULIP is divided into two parts: one part goes to the investment plan, and the second to the life insurance cover.
   
   Key Features of ULIP:
   • Provides the flexibility to choose the contributing amount towards life insurance as per individual needs.
   • Tax benefits under Sections 80C and 10(10D) of the Income Tax Act.
   • Get summed assured and accumulated unit value on maturity.

4. Equity Linked Savings Scheme (ELSS)

   If you want to invest in mutual funds and are wondering which are the best investment options, then the Equity Linked-Savings Scheme (ELSS) is the answer. An ELSS is one of a kind of mutual fund with tax-saving benefits in India.
   As a middle-class investor who wants to invest in mutual funds, you will get the benefits of equity investment and tax deduction benefits under Section 80C. ELSS has a lock-in period of just 3 years; within, it has the potential to offer higher returns, making it one of the popular choices among investors.
   
   Key Features of ELSS:
   • ELSS invests in diverse sectors, thus diversifying your portfolio and reducing risks.
   • A fixed lock-in period of 3 years encourages investors for long-term investment.
   • The tax deduction benefits are ₹1,50,000 under Section 80C by investing in ELSS.

5. Real-Estate Investment Trusts (REITs)

   Real-Estate Investment Trusts (REITs) is a company that owns, operates and generates income via real-estate investments. These REITs pool the capital of multiple investors and make it possible for them to earn dividends from real-estate investments without having to buy, manage or finance any real estate property themselves. It is one of the best long-term saving plans for middle-class investors to invest and earn from high-end properties without actually buying one themselves.
   
   Key Features of REITs:
   • REITs provide steady dividend income and capital appreciation to the investors.
   • REITs are primarily traded on the stock exchanges and offer a high liquidity ratio, which means easy options for buying and selling.
   • Investment amounts are comparatively lower than investing directly in real estate.

Summing Up

There are several investment plans; however, the ones mentioned here are some of the best for middle-class investors. These plans include government-approved options like NPS, too.

You can also check out PNB MetLife for some great investment plans that can help you achieve your financial goals even with small investments.

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