Affluent Savvy
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Which investment is best for next 5 years?

Listed below are some of the best investment plans for 5-years that you should consider investing: ULIPs. How many investment options these days offer multiple benefits? ... Traditional Plans. ... Recurring Deposits: ... Monthly Income Schemes: ... Fixed Deposits: ... Savings Account: ... Liquid Funds:

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Anyone who is looking forward to playing safe and likewise accumulating corpus should opt for the best investment plans for 5-years. The highlight of investing in an investment for the short-term is that you need not lockdown a sum for a longer time. Listed below are some of the best investment plans for 5-years that you should consider investing: ULIPs How many investment options these days offer multiple benefits? Unit Linked Insurance Plans does that for you. With features and benefits more than any other investment option available in India, ULIPs have emerged as a reliable solution for wealth creation in the recent past. Here are some of the primary features that ULIPs offer: ULIPs come with a dual benefit of insurance plus investment. Tax exemption benefits up to Rs. 1.5 lakhs are offered under Section 80C of the Income Tax Act, 1961. ULIPs are the only investment options that offer easy switching between various funds.

Redirection of premium is available.

Investors can make partial withdrawals after the completion of the lock-in period.

Beneficial for low to medium risk-taking investors with limited market knowledge.

Traditional Plans Traditional, as the name suggests, is the oldest form of insurance plan that offers benefits like: Fixed-income returns

Risk cover

Life protection

Tax benefits Best suited for the investors not willing to take any risks, Traditional Plans provides the total Sum Assured along with a vested or guaranteed bonus at the time of maturity of the plan. The main highlight of the Traditional Plans is that the investor down not have to follow the market status and only enjoys maximum returns offered under the plan. Recurring Deposits: It is one of the safest ways in terms of investment. It is perfectly suitable for those individuals who do not wish to invest a lump sum amount but are looking towards investing a sum every month. In case you are looking forward to investing in an RD, it is simple you can either opt for a bank RD or can go with a postal RD. Most likely, the bank provides 6 months of minimum tenure and 10 years to the maximum for an RD. The interest that will be received on the RD will be taxable as per the existing tax slab. Monthly Income Schemes: When it comes to investing in the best investment plans for 5-years you can also think of investing in a monthly income scheme. It is ideal for those individuals who are looking for an option for a fixed sum every month a postal MIP should be considered. Mostly the funds invest about 10 percent to 20 percent of a specific portfolio in equity and the remaining in higher duration debt instruments, which makes it a bit risky when compared to any of the debt funds.

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Fixed Deposits: Fixed deposits, which is not a new concept and has been one of the most opulent and preferred choices for every investor. Today investing in an FD is no more a task and can be done even online, which makes it even more convenient for the investors to handle. In case an investor needs instant cash it can be easily redeemed without much hassle and you will have the amount in your bank account. The returns on the fixed deposits are taxable as per the existing tax slab. Savings Account: Yes, a savings account is one ideal and most secure way to save your hard-earned money and even earn from the equivalent. The best part of a saving account is that you can withdraw the money at any point in time. The key objective in such a case is no earning but liquidity. Besides, in these cases, a 4% to 7% return can be expected from the savings account, however, it may vary from bank to bank. It is also important for you to have an understanding of Section 80TTA wherein a HUF or an individual can claim Rs 10, 000 for a deduction upon the interest that is earned from a savings account. And when the amount is more than Rs 10, 000 then the interest income will be referred to as income from other sources and will be taxed as per the existing tax slab, however, no TDS will be charged on such interest earned.

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