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Top 5 Best Investment Plans for 2020

Top 5 Best Investment Plans for 2020: Many investors want to make investments in the right way because they want to get good returns as soon as possible without any trouble. This is one of the reasons many investors are always looking for top investment plans where they can double their money in a very short period of time.

While choosing an investment avenue, you have to match your own risk profile with the associated risks of the product before investing. There are few investments that show high risk but have the potential to generate good returns than other asset classes in the long term while some investments come with low-risk and low returns.

Top 5 Best Investment Plans for 2020


So let’s look at the Top 5 Best Investment Plans for 2020. There are many factors associated with investment planning which are indicative of how much returns you will receive, how secure your investments will be, and what the benefits are. Firstly, you must consider your investment horizon and goals which will further help you select from the best investment plans. 

Financial investments include money invested in Bank deposits, mutual funds, Fixed Deposits, etc., while non-financial investments include money invested in gold, real estate, etc.

Best Investment plan 2020

Before choosing any investment plan, it is advised that you go through all the available financial vehicles carefully and then make the right choice. Consider the risk involved and the return offered by the investment plan that you are planning to go for. Note that returns and risks are directly proportional to each other; the higher the return offered, the higher the risk involved.

1. Mutual Funds

Investors sometimes confused when the plan to invest in Mutual Funds. Because they are risky because they are market-linked but higher returns cannot be overlooked. If you want to invest in markets but do not have the required experience and expertise, you can opt to invest in Mutual Funds and get higher returns than many other investment options. 

These are market-related investments that invest money in various financial instruments such as debt, equity, stocks, money market funds, etc., wherein the returns are generated as per the market performance of the fund.

There are three categories of Mutual Funds are there that is – Equity Funds, Debt Funds, and Hybrid Funds each of which invest in different asset classes.

2. Public Provident Fund

Public Provident Fund (PPF) is a government-backed investment plan that helps its subscribers to enjoy risk-free investments for the long-term. The interest rate on a PPF account is revised and paid by the Government every quarter. The current interest rate is 7.9%. There is a maturity period of 15 years under PPF. But, the money in your PPF account can only be partially withdrawn after a time period of 6 years. However, one can take a loan on the balance of the PPF account.

Since this scheme is regulated by the Government, the principal amount as well as interest earned is completely secure. Also, PPF comes under the EEE category (Exempt-Exempt-Exempt) in which the principal amount, interest earned, and maturity amount is exempted from tax. Contribution to PPF account (up to Rs 1.5 lakh per annum) is eligible for deduction under section 80C of the Income Tax Act.

3. Bank Fixed Deposits

Bank Fixed Deposits Fixed Deposits are one of the very popular Investment Plans for 2020. All the deposits are made with banks, with the guarantee of offering fixed returns over a fixed period of time. As per the bank guidelines, and the tenure of FD selected by the investor which varies from 7 days to 10 years. However, individuals can also choose from available tax-saver fixed deposits available for a fixed period of 5 to 10 years.

While investing in Fixed deposits, the investor has two options, they can do cumulative deposits or choosing a non-cumulative deposit. In the cumulative option, the interest gets reinvested into the principal amount and is payable at the time of maturity, whereas, in the non-cumulative option, the interest is paid to the investor as per the underwriting.

Banks FD Interest Rates Tenure
SBI 3.30% – 6.50% 7 days to 10 years
Canara Bank 4.00% – 6.25% 7 days to 10 years
HDFC 3.00% – 6.25% 7 days to 10 years
PNB Housing Finance 7.20% – 8.00% 12 months to 120 months
ICICI Bank 3.25% – 6.25% 7 days to 10 years
Axis Bank 3.50% – 6.75% 7 days to 10 years
IDFC First Bank 4.00% – 7.75% 7 days to 10 years

Fixed Deposit for Non-Senior CitizensDeposit amount for a fixed tenure and earn interest up to 7.10%Tenure ranges from 12 months to 60 months choose to get interest payout at maturity, or opt for periodic payoutsInvest online through a paperless journey, and get 0.10% additional rate benefit on investing online.

Bank FD Interest Rates – Regular & Senior Citizen Rates

Bank FD Interest Rate Senior Citizen FD Interest Rates
SBI 3.30% – 5.70% 3.80% – 6.50%
ICICI Bank 3.25% – 5.75% 3.75% – 6.25%
HDFC Bank 3.00% – 6.00% 3.50% – 6.50%
Axis Bank 3.50% – 6.10% 3.50% – 6.75%
IDFC First Bank 4.00% – 7.25% 4.50% – 7.75%
Kotak Bank 3.00% – 5.60% 3.50% – 6.10%
Bank of Baroda 3.50% – 5.70% 4.00% – 6.20%
Citibank 2.75% – 4.00% 3.25% – 4.50%
IDBI Bank 3.10% – 5.90% 3.60% – 6.40%
Indian Bank 3.75% – 5.75% 4.25% – 6.25%
OBC 3.50% – 5.75% 4.00% – 6.25%
Allahabad Bank 3.75% – 5.75% 4.25% – 6.25%
PNB 3.50% – 5.75% 4.00% – 6.25%
PNB Housing Finance 7.20% – 7.75% 7.45% – 8.00%
Indian Overseas Bank 4.50% – 5.75% 5.25% – 6.50%
Andhra Bank 4.00% – 5.90% 4.50% – 6.40%
Bank of India 4.00% – 5.90% 4.50% – 6.40%
Bank of Maharashtra 3.50% – 5.75% 3.50% – 6.25%
Canara Bank 4.00% – 5.75% 4.00% – 6.25%
Punjab and Sind Bank 4.00% – 5.85% 4.50% – 6.35%
Central Bank of India 3.70% – 5.65% 4.20% – 6.15%
UCO Bank 3.90% – 5.75% 4.15% – 6.25%
Union Bank of India 4.00% – 5.90% 4.50% – 6.40%
DHFL 8.50% – 9.25% 9.00% – 9.75%
Lakshmi Vilas Bank 4.00% – 7.25% 4.00% – 7.25%
United Bank of India 3.50% – 5.75% 4.00% – 6.25%
Karnataka Bank 3.50% – 5.90% 4.00% – 6.40%
DBS Bank 4.00% – 5.70% 4.00% – 5.70%
Jammu And Kashmir Bank 3.50% – 5.70% 4.00% – 6.20%
Karur Vysya Bank 4.15% – 6.05% 4.15% – 6.55%
Yes Bank 5.00% – 7.50% 5.50% – 8.00%
Syndicate Bank 4.00% – 6.30% 4.00% – 6.80%
Standard Chartered Bank 4.25% – 6.50% 4.25% – 6.50%
Dhan Laxmi Bank 3.50% – 6.40% 4.00% – 6.90%
Bajaj Finserv 7.40% – 7.60% 7.65% – 7.85%
LIC Housing Finance 7.50% – 7.60% 7.75% – 7.85%
Federal Bank 3.50% – 6.25% 4.00% – 6.75%
Corporation Bank 4.00% – 5.90% 4.50% – 6.40%
IndusInd Bank 4.00% – 7.00% 4.50% – 7.50%
RBL Bank 5.00% – 7.25% 5.50% – 7.75%
HSBC Bank 2.50% – 4.25% 3.00% – 4.75%
DCB Bank 5.00% – 7.35% 5.50% – 7.85%
Bandhan Bank 3.25% – 6.50% 4.00% – 7.25%
South Indian Bank 4.00% – 6.30% 4.50% – 6.80%

Fixed Deposit for Senior CitizensThis FD is applicable for those who are above 60 years of senior citizens gain 0.25% higher interest rateDeposit amount for a fixed tenure and earn interest up to 7.35%Tenure ranges from 12 months to 60 months

4. National Pension System

National Pension Scheme (NPS) is a Government-backed scheme that allows the investors to invest in different market-linked instruments such as equities and debt; the final pension amount depends on returns from these investments. There is 75% to 50% equity exposure for the National Pension Scheme which stabilizes the risk-return proportion for the investors.

NPS, regulated by the Pension Fund Regulatory and Development Authority of India (PFRDA), it is open to all individuals between the ages of 18 and 60; the maximum age can, however, be extended to 70. The individuals can withdraw partial amounts (up to 25%) from the NPS after 3 years of opening the account.

Can Non-Resident Indian (NRI) join NPS?

Yes, an NRI can join NPS. But the account will be closed if there is a change in the citizenship status of the NRI.

How I will join NPS?

At first, you open an NPS account with entities known as Point of Presence (POP). Most banks, both private and public sectors, are enrolled as POPs. Several financial institutions also act as POPs. The authorized branches of a POP called the point of presence service providers (POP-SPs), act as the collection points.

Can I create more than one NPS account?
No, you cannot open several NPS accounts. And, there is no need to open a second account as NPS is portable across sectors and locations.
What are the investment choices available in NPS?
The National Pension System or NPS offers two choices:
1) Active Choice: This option allows the investor to decide how the money should be invested in different assets.
2) Auto choice or lifecycle fund: This is the default option that invests money automatically in line with the age of the subscriber.
When I can withdraw money from NPS?
NPS is a pension product. So, you are expected to stay invested until your retirement. At 60, you must use at least 40 percent of the corpus to buy an annuity income from a PFRDA-listed insurance company. You have the option to withdraw 60 percent of the corpus tax-free.

5. Recurring Deposits

Recurring Deposits (RD) is a  term deposit and it offered by Indian Banks wherein the subscribers are allowed to make regular deposits and earn good returns. 

This instrument offers the flexibility of investment by allowing the investors to choose the tenure on their own. Usually, the tenure of an RD ranges from 1 year to 10 years. 

Individuals can open an RD account with their respective banks and proceed with deposits of fixed amounts every month. The interest earned is paid at the time of maturity along with the invested amount.

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Arindam

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