What is the most essential aspect of financial planning? Well, it is none other than identifying investment plans for the accumulation and creation of your wealth. In order to build your wealth, you need to know where to invest money and what garners reasonably higher returns.

Before investing in any plan, it is advisable to understand your risk appetite and then, make the investment accordingly. Additionally, opting for a plan that offers you diversity is also something that can help you with generating better returns. So if you’re looking forward to the best investment plan with higher returns, then stay hooked for wiser investment decisions:

List of 7 types of investment plans for higher returns:

1. Unit Link Insurance Plans (ULIP)

With an investment plan like ULIP, you don’t have to worry about your returns being too low or unsatisfactory. Being a value-packed investment, ULIPs promise huge returns as well as the dual benefit of protection and growth. In addition to this, a ULIP Policy allows you to make decisions based on your risk appetite and allocates your funds accordingly.

2. National Pension System (NPS)

If you’re looking for a long term retirement plan, then NPS is a perfect fit for you. This is because it offers you with monthly pension post your retirement. So you can sit back and relax without worrying about your financial status. In the initial period, NPS was only aimed towards government employees but today, anyone and everyone can invest in it.

3. Fixed Deposits (FD)

The most preferred and widely used option for investment is FDs. You know why? That’s simply because FDs provide you with guaranteed returns as well as allows you to earn higher interest rates. You can opt for FDs as per your need and invest in it monthly, quarterly or annually.

4. Public Provident Fund (PPF)

PPF is for those risk-averse investors who do not prefer mutual funds. This type of investment attracts a majority of investors due to its long term lock-in period which is of 15 years. Moreover, it falls under the Exempt-Exempt-Exempt (EEE) category which simply means that it allows you the liberty of exemption from taxes.

5. Savings Plan

Accumulation of wealth for long term goals eventually paves the way to the savings plan. Investment in savings plan ensures guaranteed returns along with payout options which can be customized. A savings plan not only provides you with a flexible policy term but also allows you to save and compound your money. Additionally, investing in a savings plan sees to it that your savings remain unaffected by the influence of all the market forces.

6. Gold

Investment in gold comes with 3 options. You can invest in gold in physical form, exchange-traded funds (ETF), or sovereign gold bonds. If you want to invest in a physical form, keep your Pan card handy. Gold ETFs are mutual funds which represent 1g of gold in either physical or electronic formats. Sovereign gold bonds offer a high ROI without any involvement of risks.

7. Mutual Funds

Just like ULIPs, mutual funds are also known to provide you with huge returns. Additionally, when you invest in mutual funds, you also get to invest in equities, bonds, and other investment plans.

Choosing an investment plan can end up into a tedious task if you are not familiar with the various options available for investment. Therefore, the best way to do so is by making a choice based on your risk appetite. So keep that in mind and plan your actions accordingly in order to generate the required returns.

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