BEST INVESTMENT PLANS FOR MIDDLE CLASS & LOWER CLASS

Best Investment Plans

What is an Investment Plan?

Investment Plans are financial products that provide the opportunity to create wealth for future. Investment plans offer to help individuals in disciplined and periodic investment into different funds overtime so as to achieve their future financial goals.

How do i go for an investment plan?

The first step in planning your investments is to figure out the right investment that fits your profile and needs. Investment planning requires choosing investments carefully after doing adequate research and not falling for quick-buck schemes that promise high returns in a short time. You must review your stock and mutual fund investments regularly and keep an eye on the tax implications on returns and capital gains that you make form specific investments. In India, there are a lot of investment options that can work for you. Such 14 best investment plans options are listed below:

BEST  INVESTMENT  RATIO  OF  YOUR  MONTHLY   INCOME : 

50%  FAMILY

20%  NEED BASIS

20%  SAVINGS & INVESTMENT

10%  LUXURY

14 investment options for you:

Public Provident Fund (PPF):	Traditionally considered to be among the best and safest investment modes in India, PPF is one of the most popular small savings scheme. PPF account holders can invest up to Rs 1.5 lakh in a financial year while the minimum deposit required is Rs 500. Deposits can be made in lump-sum or in 12 installments. PPF deposits qualify for deduction from income under Section 80C of the Income Tax Act. In terms of income tax implications, PPF accounts also qualify for EEE (exempt, exempt, exempt) tax category, which means an investor is not liable to pay tax at all three levels - investment, earning and withdrawal.
Mutual Funds	Mutual fund dealers allow you to compare the funds based on different metrics, such as level of risk, return, and price. Also, as the information is easily accessible, the investor will be able to make wise decisions. Besides, Mutual Funds offer benefits in liquidity and professional management.
Direct Equity	Direct plans help you to save money on commissions and marketing-related expenses. This small saving is invested in the scheme and it may help you to make extra returns over a long period.
Real Estate Investment	Investment in real estate is one of the most lucrative and beneficial in India, as the potential for development is huge and the market  is growing.
Gold investment	Traditionally considered to be among the best options, gold investment schemes offer you the chance to convert a blocked asset into high-value liquidity.
Post Office Saving Scheme	Ideal for retired people who need regular income, it comes with the option of account conversion.
Company Fixed Deposits (FDs)	Company FDs offer higher interest rates than bank FDs and are ideal for long-term investments.
Initial Public Offerings (IPOs)	IPOs, launched by reputed companies is an ideal long term and low-risk investment option.
ULIPs (Unit Linked Insurance Plans)	ULIPs offer a range of benefits and provide the joint benefits of investment and insurance. Known for tax benefits, ULIPs are among the top investment mediums in India.
Bonds	Bonds are often liquid – it is often fairly easy for an institution to sell a large quantity of bonds without affecting the price much.
Bank FD	Bank fixed deposits are extremely popular in India. Coming with cumulative/non-cumulative options, bank FDs offer fixed returns over the investment tenure and the returns are payable on a monthly, annual or bi-annual basis, depending on the bank policy.
Senior Citizen Savings Scheme (SCSS)	SCSS's are tax free and risk-free investment options for senior citizens above the age of 60. They offer big interest rates and are quite lucrative.
RBI taxable bonds	These RBI bonds have tenure of 7 years and are issued in demat format (they are credited to BLA or Bond Ledger Account of the holder).
National Pension Scheme	It is a government-organized pension product for the employees of all the sectors in India and offers plans based on equity debt, corporate debt and government bond. In NPS a minimum contribution of Rs 6,000 a year is required while there is no upper cap.

7 HABITS THAT MAKE YOU RICH FROM OTHERS :

1.  Save at least 20% of your earnings.

2.  Spend less than you make.

3.  Use saved money to make more money.

4.  Avoid investment that sound too good to be true.

5.  Own your home.

6.  Have a retirement plan.

7.  Invest in your ability to earn more.

Frequently asked questions (FAQ)

What is the difference between a savings plan and an investment plan?

The terms ‘saving’ and ‘investing’ are often used interchangeably, but this isn’t always accurate. Savings and investments are two different types of financial tools that are used to fulfill different needs.

• Savings: This refers to setting some money aside to be used in the future. The money is usually kept in a savings account and can easily be accessed, especially in emergency situations.
• Investment: On the other hand, investment refers to buying assets like bonds, stocks, real estate or mutual funds to help your money grow.

While a savings plan enables you to build up a corpus over time, an investment plan provides you with an avenue where you can help your money grow.

Should I Opt for a Short-term or Long-term Investment Plan?

The answer to this will depend largely on your financial goals. However, it’s always a good idea to have a good mix of both short- and long-term investments in your portfolio. Short-term investment plans will enable you to achieve your short-term financial goals, such as building up enough money to purchase a car, while a long-term investment plan could enable you to achieve your long-term goals like building up enough money to purchase a house. On the whole, long-term investment plans are generally preferred since safer investment tools can be used to enjoy better returns in the long run.