1. Do all investment plans offer a tax deduction under Section 80C?

No, not all investment plans offer a tax deduction under Section 80C . For instance, if you invest in real estate, you would not get a tax deduction under Section 80C on the invested amount. Only the principal repayment of home loans qualifies under section 80C. Section 80C lists eligible investment plans that attract tax deductions. Check the list to see which plans offer a deduction under the section.

2. Can I liquidate my investment before the specified maturity date?

Liquidating your investment before maturity depends on the type of investment avenue that you have selected. Some investment plans might have a lock-in period within which liquidation is not possible. For instance, ULIPs have a lock-in period of 5 years while ELSS schemes have a lock-in of 3 years. Under other investment plans, redemption before maturity might be allowed, but there may be a penalty clause. For instance, a premature withdrawal penalty may apply to fixed deposits if you liquidate the deposit before maturity. Some investment plans do not have a fixed tenure and can be liquidated at any time. For instance, equity shares, equity mutual funds, gold, etc., can be redeemed whenever needed.

3. Which investment plan is suitable for investing for a week?

If you have a very short-term horizon, choose an investment plan which offers instant liquidity. Some examples include a bank savings account, liquid mutual funds, etc.

4. Do investment plans offer guaranteed returns?

Not all investment plans offer guaranteed returns. Some plans offer fixed interest on your investment, which guarantees the returns, while others do not. For instance, fixed deposits, PPFs, NSCs, etc., offer guaranteed returns. However, equity shares, mutual funds, ULIPs, etc., do not offer guaranteed returns.

5. What is the lock-in period under ULIPs?

The lock-in period under ULIPs is 5 years.

6. Which Investment Plan Is Right for Me?

The choice of the right investment plan would depend on your financial goals, risk appetite, investment horizon, return expectation, and tax planning.

7. How Does a Savings Plan Differ from an Investment Plan?

A savings plan generally offers stable and predictable returns as outlined in the policy features, and some products may provide guaranteed* benefits as per their terms and conditions. These plans usually carry lower risk. Investment plans—such as mutual funds or market-linked schemes—offer returns based on market performance and therefore come with market-linked risks. The contention behind the comment was to put a ref sign on the word “guaranteed”, pls ensure that we have put it in added content.

8. Should I Choose a Short-Term or Long-Term Investment Plan?

The choice of tenure depends on your financial goals. It is better to choose short-term investment plans for short-term goals like going on a vacation, buying a vehicle, etc. However, for long-term goals, like a child’s education, retirement, etc., long-term plans are a better fit.

9. What is the Maximum Amount I Can Withdraw from my equity Mutual Fund Investment?

There is no upper limit on how much you can redeem from an equity mutual fund; you may withdraw fully or partially, subject to the scheme’s terms and conditions. However, certain factors apply: Some mutual funds may levy an exit load if units are redeemed within a specified period. ELSS funds have a mandatory 3-year lock-in, during which no withdrawal is allowed. Withdrawals may attract capital gains tax, depending on the holding period and applicable tax rules.

10. Which Is the Safest Investment Option with the Highest Returns?

The safest investment option would be one that offers predictable returns, like fixed deposits or public provident funds. However, such avenues might not offer inflation-adjusted returns. Moreover, the FD returns vary across banks and NBFCs. So, compare the returns across different institutions to find the highest return.

11. How Do I Discover the Best Investment Ideas for Long-Term Wealth Creation?

You can assess the financial markets, compare long-term investment options and take professional investment advice to find the right investment avenues for your needs.

12. What Is the Rule of 72 in Investing and How Does It Work?

The rule of 72 helps you find out the time period after which your investment would double in value at a fixed annual rate of return. You would have to divide 72 by the annual rate of return to find the tenure within which your investment would double. 1 For instance, if the rate of return is 4%, the term would be calculated as 72/4 = 18 years. So, your investment would double in 18 years at 4% annual rate of return.

13. Which Investment Options Offer High Returns with Minimal Risk?

No investment option can guarantee high returns with minimal risk, as returns generally correlate with the level of risk involved. However, some financial products—such as government-backed schemes or certain low-volatility market instruments—are often considered relatively more stable. The right choice depends on your goals, time horizon, and risk comfort. It is advisable to review product details and consult a qualified financial adviser before investing.

14. What Are the Common Modes or Avenues of Investment?

The common investment modes include offline modes through cash or online modes through digital payment channels. Moreover, you can invest in a lump sum or through regular instalments under many investments avenues

Best Investment Plans For High Returns In India In 2026

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Here's a table containing types of investment plans, their brief descriptions, and their tax implications. The plans have been divided into high-risk and low-risk categories to facilitate understanding.

High-risk investment plans

Type of plan	Brief description	Tax implication
Equity shares	These are stocks issued by companies listed on the stock exchange. Buying a share means getting part ownership in the company	Selling within 12 months – 15% short-term capital gain tax Selling after 12 months – Returns up to ₹1 lakh are tax-free. Excess returns are taxed at 10%⁵
Equity mutual funds	Mutual funds that allocate at least 65% of their capital to equity are called equity mutual funds. These funds have a high-risk, high-return profile	Selling within 12 months – 15% short-term capital gain tax Selling after 12 months – Returns up to ₹1 lakh are tax-free. Excess returns are taxed at 10%
ULIP equity funds	These funds are available under ULIPs, which invest primarily in equity. These funds have a high-risk, high-return profile.	Premiums paid qualify for tax deduction under Section 80C up to ₹1.5 lakhs, subject to specific terms and conditions The death benefit is tax-free. On maturity, the benefit received is tax-free if the premium paid is up to 10% of the capital sum assured for policies bought on or after 1^st April 2012. For policies bought before 1^st April 2012, the premium should be up to 20% of the capital sum assured. For policies bought on or after 1^st April 2013 by individuals suffering from a disability or a disease specified under Section 80DDB or 80U, the premium should be up to 15% of the capital sum assured. For policies issued on or after 1^st February 2021, the annual aggregate premium should be up to ₹2.50 lakh. If the annual aggregate premium exceeds ₹2.50 lakh, ULIP/ULIPs would attract long-term capital gain taxation.
Equity funds in the National Pension System (NPS)	This is a market-linked retirement-oriented scheme which helps to build a retirement fund	Investment in the NPS scheme qualifies for income tax deduction under Section 80CCD (2). Additional deduction on investment is also allowed under Section 80CCD (1B). On maturity, 60% of the commuted corpus is tax-free, from the remaining 40% amount, an annuity policy needs to be purchased and the annuity received is taxed at your applicable slab rates.
Equity-Linked Savings Scheme (ELSS)	Equity-oriented mutual fund schemes which come with a lock-in period of 3 years	Investments made into ELSS qualify for 80C deduction up to ₹1.5 lakhs. Returns earned are tax-free up to ₹1.25 lakhs. Excess returns are taxed at 12.5%.
Initial Public Offerings (IPOs)	IPOs offer equity shares of companies going public for the very first time.	For listed equity shares and equity-oriented mutual funds sold on or after 23 July 2024, long-term capital gains (i.e., holdings over 12 months) are taxed at 12.5% above an exemption of ₹1.25 lakh. Short-term capital gains (i.e., sale within 12 months) on listed equity shares and equity-oriented funds are taxed at 20% (for transfers on or after 23 July 2024 under Section 111A) if STT (Securities Transaction Tax) is paid².
REITs (Real Estate Investment Trusts)	REITs are pooled investment avenues that help you invest in interest-generating real estate properties.	Capital gains earned are tax-free up to ₹1.25 lakhs for units sold after 12 months. Excess gains are taxed at 12.5%. If you sell the units within 12 months, the returns earned would be taxed at 20%.
InvITs (Infrastructure Investment Trusts)	InvITs are pooled investment avenues that invest in different types of infrastructure projects.	Equity & Equity-Oriented Mutual Funds If held for more than 12 months: Long-term capital gains are tax-free up to ₹1.25 lakh per year; gains above this are taxed at 12.5%. If sold within 12 months: Short-term gains are taxed at 20%. Debt & Other Non-Equity Mutual Funds Long-term capital gains on transfers made on or after 23 July 2024 are taxed at a uniform 12.5%, while short-term gains are taxed at 20%, subject to purchase and holding-period rules.
Corporate Bonds (Below AAA-Rated or Market-Traded)	These are debt instruments issued by companies to raise funds for their needs. Below AAA-rated bonds carry a high credit risk for investors.	For listed bonds, capital gains when held for more than 12 months are treated as long-term capital gains (LTCG) and may be taxed differently. For unlisted bonds, the holding period for classification as LTCG is typically more than 36 months, and the tax rate is 20% without indexation benefit, as per standard guidelines.

Type of plan

Brief description

Tax implication

Equity shares

These are stocks issued by companies listed on the stock exchange. Buying a share means getting part ownership in the company

Selling within 12 months – 15% short-term capital gain tax

Selling after 12 months – Returns up to ₹1 lakh are tax-free. Excess returns are taxed at 10%⁵

Equity mutual funds

Mutual funds that allocate at least 65% of their capital to equity are called equity mutual funds. These funds have a high-risk, high-return profile

Selling within 12 months – 15% short-term capital gain tax

Selling after 12 months – Returns up to ₹1 lakh are tax-free. Excess returns are taxed at 10%

ULIP equity funds

These funds are available under ULIPs, which invest primarily in equity. These funds have a high-risk, high-return profile.

Premiums paid qualify for tax deduction under Section 80C up to ₹1.5 lakhs, subject to specific terms and conditions

The death benefit is tax-free.

On maturity, the benefit received is tax-free if the premium paid is up to 10% of the capital sum assured for policies bought on or after 1^st April 2012.

For policies bought before 1^st April 2012, the premium should be up to 20% of the capital sum assured.

For policies bought on or after 1^st April 2013 by individuals suffering from a disability or a disease specified under Section 80DDB or 80U, the premium should be up to 15% of the capital sum assured.

For policies issued on or after 1^st February 2021, the annual aggregate premium should be up to ₹2.50 lakh. If the annual aggregate premium exceeds ₹2.50 lakh, ULIP/ULIPs would attract long-term capital gain taxation.

Equity funds in the National Pension System (NPS)

This is a market-linked retirement-oriented scheme which helps to build a retirement fund

Investment in the NPS scheme qualifies for income tax deduction under Section 80CCD (2). Additional deduction on investment is also allowed under Section 80CCD (1B). On maturity, 60% of the commuted corpus is tax-free, from the remaining 40% amount, an annuity policy needs to be purchased and the annuity received is taxed at your applicable slab rates.

Equity-Linked Savings Scheme (ELSS)

Equity-oriented mutual fund schemes which come with a lock-in period of 3 years

Investments made into ELSS qualify for 80C deduction up to ₹1.5 lakhs. Returns earned are tax-free up to ₹1.25 lakhs. Excess returns are taxed at 12.5%.

Initial Public Offerings (IPOs)

IPOs offer equity shares of companies going public for the very first time.

For listed equity shares and equity-oriented mutual funds sold on or after 23 July 2024, long-term capital gains (i.e., holdings over 12 months) are taxed at 12.5% above an exemption of ₹1.25 lakh.

Short-term capital gains (i.e., sale within 12 months) on listed equity shares and equity-oriented funds are taxed at 20% (for transfers on or after 23 July 2024 under Section 111A) if STT (Securities Transaction Tax) is paid².

REITs (Real Estate Investment Trusts)

REITs are pooled investment avenues that help you invest in interest-generating real estate properties.

Capital gains earned are tax-free up to ₹1.25 lakhs for units sold after 12 months. Excess gains are taxed at 12.5%.

If you sell the units within 12 months, the returns earned would be taxed at 20%.

InvITs (Infrastructure Investment Trusts)

InvITs are pooled investment avenues that invest in different types of infrastructure projects.

Equity & Equity-Oriented Mutual Funds

If held for more than 12 months: Long-term capital gains are tax-free up to ₹1.25 lakh per year; gains above this are taxed at 12.5%.

If sold within 12 months: Short-term gains are taxed at 20%.

Debt & Other Non-Equity Mutual Funds

Long-term capital gains on transfers made on or after 23 July 2024 are taxed at a uniform 12.5%, while short-term gains are taxed at 20%, subject to purchase and holding-period rules.

Corporate Bonds (Below AAA-Rated or Market-Traded)

These are debt instruments issued by companies to raise funds for their needs. Below AAA-rated bonds carry a high credit risk for investors.

For listed bonds, capital gains when held for more than 12 months are treated as long-term capital gains (LTCG) and may be taxed differently.

For unlisted bonds, the holding period for classification as LTCG is typically more than 36 months, and the tax rate is 20% without indexation benefit, as per standard guidelines.

Low-risk investments

Type of plan	Brief description	Tax implication
Fixed deposits (FDs)	Fixed deposits offer guaranteed returns on your investment. You can save a lump sum amount for a fixed tenure.	Investment in 5-year FDs qualifies for income tax deduction under Section 80C up to ₹1.5 lakhs. Interest earned is taxable. Senior citizens can enjoy a tax deduction on interest income under Section 80TTB up to ₹50,000
Public Provident Fund (PPF)	It is a government-backed small savings scheme offering assured returns with a tenure of 15 years	The investment made is tax-deductible under Section 80C up to ₹1.5 lakhs Interest earned and maturity proceeds are also tax-free
National Savings Certificate (NSC)	NSC is also a government-backed fixed-income scheme offered by the post office.	The investment made and interest earned in the first four years are allowed as a deduction under Section 80C. The interest earned in the fifth year are taxed at your income tax slab rates
Kisan Vikas Patra	This is a small savings scheme offered by the government with assured returns.	Investments made are eligible for deduction under Section 80C. However, the interest earned is taxable in your hands at your income tax slab rates
Sukanya Samriddhi Yojana (SSY)	This scheme is a fixed-income scheme for the financial security of a girl child.	The investment is eligible for deduction under Section 80C. The interest earned and the maturity benefit paid are also tax-free
Employees’ Provident Fund (EPF)	A retirement-oriented, fixed-income avenue for salaried employees, EPF creates a corpus over the employee’s active working life.	Investments made are allowed as a deduction under Section 80C up to Rs 1.5 lakhs, subject to specific limits. The interest earned is also tax-free, subject to specific conditions
Capital Guarantee Plans	These are unit-linked life insurance plans that guarantee the return of the capital invested in the policy, even if the markets suffer volatility	Premiums paid are allowed as a deduction under Section 80C up to ₹1.5 lakhs, in case of old tax regime. Death benefit is tax-free. The maturity benefit is tax-free under Section 10(10D), subject to certain terms and conditions.
Guaranteed Savings Plans	These are traditional life insurance savings plans that offer guaranteed benefits on maturity or death	Premiums paid are allowed as a deduction under Section 80C up to ₹1.5 lakhs, in case of old tax regime. Death benefit is tax-free. The maturity benefit is tax-free under Section 10(10D), subject to certain terms and conditions.
Post Office Saving Scheme	These include different types of saving schemes issued by the post office, like savings accounts, the monthly income scheme, the recurring deposit scheme, etc.	Taxation depends on the type of scheme that you choose.
Senior Citizen Saving Scheme (SCSS)	This is a savings scheme for senior citizens that offers guaranteed returns on deposits	Investments made into the scheme qualify for tax deduction under Section 80C up to ₹1.5 lakhs.
RBI Taxable Bonds	These are bonds issued by the RBI and backed by the Indian government	Interest from most bonds is taxed at your income-tax slab rate, while interest from specified tax-free bonds is exempt. TDS may also apply as per Income Tax Act provisions
. Debt funds under mutual funds and ULIPs	Debt mutual funds invest primarily in debt instruments and help you build a stable corpus. They have a low-risk, low-return profile as compared to equity funds. In ULIPs, the policyholder can choose the type of investment based on their risk appetite and investment goals.	For ULIPs – Premiums paid qualify for tax deduction under Section 80C up to ₹1.5 lakhs, subject to specific terms and conditions The death benefit is tax-free. On maturity, the benefit received is tax-free if the premium paid is up to 10% of the capital sum assured for policies bought on or after 1^st April 2012. For policies bought before 1^st April 2012, the premium should be up to 20% of the capital sum assured For policies bought on or after 1^st April 2013 by individuals suffering from a disability or a disease specified under Section 80DDB or 80U, the premium should be up to 15% of the capital sum assured For policies issued on or after 1^st February 2021, the annual aggregate premium should be up to ₹2.50 lakh. If the annual aggregate premium exceeds ₹2.50 lakhs, the returns earned would be taxed as long-term capital gain @ 20% on the gain amount. For debt mutual funds – No tax benefit on investment, and returns earned would be taxed at your income tax slab rates
Sovereign Gold Bonds	These are an alternative to holding gold in physical form and are issued by the RBI	Interest earned from the bond would be taxed in your hands. However, capital gains earned on redemption of the bond would be tax-exempt.
Atal Pension Yojana	This is a government-backed pension scheme which offers a guaranteed pension to senior citizens	The scheme enjoys the same tax implications as NPS. Contributions made are tax-free under Section 80CCD, while the annuity received is taxed in your hands.
Recurring deposit	This is a fixed-income investment scheme that allows you to deposit a fixed amount periodically up to a specified tenure	Contributions made and returns earned are taxable in your hands.
Voluntary Provident Fund	VPF is the voluntary contribution by a salaried employee to the provident fund, which is in excess of the PPF contribution	Investment qualifies as a deduction under Section 80C up to ₹1.5 lakhs. Interest income, up to ₹2.5 lakhs, is tax-free, and so are the maturity proceeds, when withdrawn after five years of opening the VPF account.
Post Office Monthly Income Scheme (POMIS)	This monthly investment plan offers a guaranteed monthly interest income when you invest a lump sum amount	The interest income is taxable in your hands.
Floating Rate Savings Bonds (FRSBs)	These are debt instruments issued by the RBI which offer guaranteed interest rates	The income is taxable in your hands at your slab rates.
Treasury Bills	These are short-term, fixed-income debt instruments issued by the government	Returns are taxable in your hands and treated as STCG as per your slab rates.
Child plans	These are life insurance plans aimed to create a corpus for your child’s future even when you are not around.	Premiums paid are allowed as a deduction under Section 80C up to ₹1.5 lakhs, in case of old tax regime. Death benefit is tax-free. The maturity benefit is tax-free under Section 10(10D), subject to certain terms and conditions.
Annuity plans	These are life insurance plans which are aimed at creating a corpus for your retirement and also generating lifelong annuities	Premiums paid for deferred annuity plans qualify for a tax deduction under Section 80CCC up to ₹1.5 lakhs, in case of old tax regime. Annuity income received is taxed at your slab rates.
Company fixed deposits (high-rated)	These are deposits issued by companies that allow you to earn fixed returns on investments	The interest earned is taxed in your hands at your slab rates.
Corporate bonds (AAA rated)	Corporates issue these bonds as debt instruments, looking to raise funds	Returns earned are taxed at 12.5% if the bonds are held for more than 12 months and are listed on the stock exchange. If you sell the listed bonds within 12 months, the returns earned would be taxed at your income tax slab. For unlisted bonds, the capital gains earned are taxed at your slab rates.

Type of plan

Brief description

Tax implication

Fixed deposits (FDs)

Fixed deposits offer guaranteed returns on your investment. You can save a lump sum amount for a fixed tenure.

Investment in 5-year FDs qualifies for income tax deduction under Section 80C up to ₹1.5 lakhs.

Interest earned is taxable. Senior citizens can enjoy a tax deduction on interest income under Section 80TTB up to ₹50,000

Public Provident Fund (PPF)

It is a government-backed small savings scheme offering assured returns with a tenure of 15 years

The investment made is tax-deductible under Section 80C up to ₹1.5 lakhs

Interest earned and maturity proceeds are also tax-free

National Savings Certificate (NSC)

NSC is also a government-backed fixed-income scheme offered by the post office.

The investment made and interest earned in the first four years are allowed as a deduction under Section 80C. The interest earned in the fifth year are taxed at your income tax slab rates

Kisan Vikas Patra

This is a small savings scheme offered by the government with assured returns.

Investments made are eligible for deduction under Section 80C. However, the interest earned is taxable in your hands at your income tax slab rates

Sukanya Samriddhi Yojana (SSY)

This scheme is a fixed-income scheme for the financial security of a girl child.

The investment is eligible for deduction under Section 80C. The interest earned and the maturity benefit paid are also tax-free

Employees’ Provident Fund (EPF)

A retirement-oriented, fixed-income avenue for salaried employees, EPF creates a corpus over the employee’s active working life.

Investments made are allowed as a deduction under Section 80C up to Rs 1.5 lakhs, subject to specific limits. The interest earned is also tax-free, subject to specific conditions

Capital Guarantee Plans

These are unit-linked life insurance plans that guarantee the return of the capital invested in the policy, even if the markets suffer volatility

Premiums paid are allowed as a deduction under Section 80C up to ₹1.5 lakhs, in case of old tax regime. Death benefit is tax-free. The maturity benefit is tax-free under Section 10(10D), subject to certain terms and conditions.

Guaranteed Savings Plans

These are traditional life insurance savings plans that offer guaranteed benefits on maturity or death

Post Office Saving Scheme

These include different types of saving schemes issued by the post office, like savings accounts, the monthly income scheme, the recurring deposit scheme, etc.

Taxation depends on the type of scheme that you choose.

Senior Citizen Saving Scheme (SCSS)

This is a savings scheme for senior citizens that offers guaranteed returns on deposits

Investments made into the scheme qualify for tax deduction under Section 80C up to ₹1.5 lakhs.

RBI Taxable Bonds

These are bonds issued by the RBI and backed by the Indian government

Interest from most bonds is taxed at your income-tax slab rate, while interest from specified tax-free bonds is exempt. TDS may also apply as per Income Tax Act provisions

. Debt funds under mutual funds and ULIPs

Debt mutual funds invest primarily in debt instruments and help you build a stable corpus. They have a low-risk, low-return profile as compared to equity funds.
In ULIPs, the policyholder can choose the type of investment based on their risk appetite and investment goals.

For ULIPs –

Premiums paid qualify for tax deduction under Section 80C up to ₹1.5 lakhs, subject to specific terms and conditions

The death benefit is tax-free.

On maturity, the benefit received is tax-free if the premium paid is up to 10% of the capital sum assured for policies bought on or after 1^st April 2012.

For policies bought before 1^st April 2012, the premium should be up to 20% of the capital sum assured

For policies issued on or after 1^st February 2021, the annual aggregate premium should be up to ₹2.50 lakh. If the annual aggregate premium exceeds ₹2.50 lakhs, the returns earned would be taxed as long-term capital gain @ 20% on the gain amount.

For debt mutual funds –

No tax benefit on investment, and returns earned would be taxed at your income tax slab rates

Sovereign Gold Bonds

These are an alternative to holding gold in physical form and are issued by the RBI

Interest earned from the bond would be taxed in your hands. However, capital gains earned on redemption of the bond would be tax-exempt.

Atal Pension Yojana

This is a government-backed pension scheme which offers a guaranteed pension to senior citizens

The scheme enjoys the same tax implications as NPS. Contributions made are tax-free under Section 80CCD, while the annuity received is taxed in your hands.

Recurring deposit

This is a fixed-income investment scheme that allows you to deposit a fixed amount periodically up to a specified tenure

Contributions made and returns earned are taxable in your hands.

Voluntary Provident Fund

VPF is the voluntary contribution by a salaried employee to the provident fund, which is in excess of the PPF contribution

Investment qualifies as a deduction under Section 80C up to ₹1.5 lakhs. Interest income, up to ₹2.5 lakhs, is tax-free, and so are the maturity proceeds, when withdrawn after five years of opening the VPF account.

Post Office Monthly Income Scheme (POMIS)

This monthly investment plan offers a guaranteed monthly interest income when you invest a lump sum amount

The interest income is taxable in your hands.

Floating Rate Savings Bonds (FRSBs)

These are debt instruments issued by the RBI which offer guaranteed interest rates

The income is taxable in your hands at your slab rates.

Treasury Bills

These are short-term, fixed-income debt instruments issued by the government

Returns are taxable in your hands and treated as STCG as per your slab rates.

Child plans

These are life insurance plans aimed to create a corpus for your child’s future even when you are not around.

Annuity plans

These are life insurance plans which are aimed at creating a corpus for your retirement and also generating lifelong annuities

Premiums paid for deferred annuity plans qualify for a tax deduction under Section 80CCC up to ₹1.5 lakhs, in case of old tax regime. Annuity income received is taxed at your slab rates.

Company fixed deposits (high-rated)

These are deposits issued by companies that allow you to earn fixed returns on investments

The interest earned is taxed in your hands at your slab rates.

Corporate bonds (AAA rated)

Corporates issue these bonds as debt instruments, looking to raise funds

Returns earned are taxed at 12.5% if the bonds are held for more than 12 months and are listed on the stock exchange.

If you sell the listed bonds within 12 months, the returns earned would be taxed at your income tax slab.

For unlisted bonds, the capital gains earned are taxed at your slab rates.

Moderate Risk Investment Plans

Name of the plan	Brief description	Tax implication
Traditional life insurance plans	These moderate-risk investment plans include endowment and money-back plans, which offer a non-guaranteed bonus and help you create a corpus for your financial goals	Premiums paid are allowed as a deduction under Section 80C up to ₹1.5 lakhs, in case of old tax regime. Death benefit is tax-free. The maturity benefit is tax-free under Section 10(10D), subject to certain terms and conditions.
Monthly Income Plans (MIP - Debt-oriented)	These are hybrid mutual funds combining debt and equity investments for moderate returns	Interest from most bonds is taxed at your income-tax slab rate, while interest from specified tax-free bonds is exempt. Monthly Income Plans (MIPs) are mutual fund schemes and are taxed under mutual-fund rules.

Name of the plan

Brief description

Tax implication

Traditional life insurance plans

These moderate-risk investment plans include endowment and money-back plans, which offer a non-guaranteed bonus and help you create a corpus for your financial goals

Monthly Income Plans (MIP - Debt-oriented)

These are hybrid mutual funds combining debt and equity investments for moderate returns

Interest from most bonds is taxed at your income-tax slab rate, while interest from specified tax-free bonds is exempt. Monthly Income Plans (MIPs) are mutual fund schemes and are taxed under mutual-fund rules.

When it comes to investing, the earlier, the better. This is because when you start early, you can save over a long-term horizon. With compounding returns, a long-term horizon allows your savings to grow considerably, yielding a good corpus.

For instance, say you want to invest ₹10,000 every month till you are 60 years old. You have two options – start investing at 25 years of age or start investing at 30.

Here’s what the corpus would be under both instances –

Case 1	Case 2
Invested amount - ₹10,000 per month	Invested amount - ₹10,000 per month
The assumed rate of return is 12% p.a.	The assumed rate of return is 12% p.a.
Current age – 25 years	Current age – 30 years
Maturity age – 60 years	Maturity age – 60 years
Investment tenure – 35 years	Investment tenure – 30 years
Corpus at maturity - ₹6.43 crore (approx.)	Corpus at maturity - ₹3.49 crore (approx.)

Case 1

Case 2

Invested amount - ₹10,000 per month

The assumed rate of return is 12% p.a.

Current age – 25 years

Current age – 30 years

Maturity age – 60 years

Investment tenure – 35 years

Investment tenure – 30 years

Corpus at maturity - ₹6.43 crore (approx.)

Corpus at maturity - ₹3.49 crore (approx.)

A delay of just 5 years and see the difference it has made to the corpus.

As such, starting early is beneficial to allow your savings to accumulate and grow into a good corpus.

Assumed investment returns on 35^th Policy Year	CAGR^#
₹ 1,21,80,398	8%^#
₹ 38,74,832	4%^#

Term Insurance Plans

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Affordable Term Plans

Policy Term Plans

Insurance for All

Insurance Made Easy

ULIP Plans

Savings Plan

Endowment Plans

Child Insurance Plan

Retirement Plans

NRI Plans

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Savings Plan

Retirement Plans

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Life Insurance Calculators

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Know About SISO

Fund Performance

ULIP Plans

Tools & Calculators

Fund performance

Life Insurance Guide

Tools & Calculators

Investment Plans

What is an Investment Plan?

Types of Investment Plans

High-risk investment plans

Low-risk investments

Moderate Risk Investment Plans

Risks & returns in investment

1. Volatility risk

2. Credit risk

3. Liquidity risk

4. Reinvestment risk

Benefits of investment plan

Potential to Tackle Inflation

Wealth Creation

Secure Your Retirement

How to choose the best investment plan?

1. The risk involved

2. Return potential

3. Investment horizon

4. Financial needs

5. Investment amount

6. Tax benefits

When should one start investing?

Why Is It Important to Invest in the Right Investment Plan?

Key takeaways

Investment Plan by Bajaj Life Insurance

Why Bajaj Life Insurance ?

Claim Settlement Ratio~

Get 1 Day Claim Approval%

Stable Rating by CARE$$

Assets Under Management (AUM)***

Number of Lives Covered##

Solvency Ratio of 359%^^^

Conclusion

Frequently Asked Questions

1. Do all investment plans offer a tax deduction under Section 80C?

2. Can I liquidate my investment before the specified maturity date?

3. Which investment plan is suitable for investing for a week?

4. Do investment plans offer guaranteed returns?

5. What is the lock-in period under ULIPs?

6. Which Investment Plan Is Right for Me?

7. How Does a Savings Plan Differ from an Investment Plan?

8. Should I Choose a Short-Term or Long-Term Investment Plan?

9. What is the Maximum Amount I Can Withdraw from my equity Mutual Fund Investment?

10. Which Is the Safest Investment Option with the Highest Returns?

11. How Do I Discover the Best Investment Ideas for Long-Term Wealth Creation?

12. What Is the Rule of 72 in Investing and How Does It Work?

13. Which Investment Options Offer High Returns with Minimal Risk?

14. What Are the Common Modes or Avenues of Investment?

Investment Insurance Plans Guide

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Claim Settlement Ratio^~

Get 1 Day Claim Approval^%

Stable Rating by CARE^$$

Assets Under Management (AUM)^***

Number of Lives Covered^##

Solvency Ratio of 359%^{^^^}