Top One Time Investment Plans 2023 in India for 1 Year and 5 Years

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They say, ‘money saved is money earned’. It is quite true, because if you end up spending all your money, how will you keep your financial future safe? However, if you want to create a substantial wealth corpus, you not only need to save but invest as well. The reason is if you save, you only get interest on the fund, if you invest you get high returns. And if you are the kind of a person who does not like premiums after every certain period, you can opt for a one-time investment plan. Read on to know best investment plan for 1 and 5 years.

What is a one-time investment plan?

A one-time investment plan is a type of plan in which you pay the corpus in one go, there is no premium that you have to pay. You can choose from the best one-time investment plans with high returns and forget about paying any premiums.

5 Best One Time Investment Plans in 2023 for 1 & 5 Years

There are various types of one-time investment plans such as:

  • ULIPs
  • Fixed deposits
  • Recurring deposits
  • Liquid funds
  • PPF and EPF
  • Stocks
  • Mutual funds
  • 5-year FD

These are further divided into 1-year one-time investment plans and 5-year one-time investment plans. Let us discuss them both.

Best One-Year Investment Plans

Some of the best one-time investment plans for 1 year are as follows:

1. Recurring Deposits

Recurring Deposit is one of the most sought-after options if you want to go for a one-year investment plan. This is a fixed amount that you pay to the bank or post office and after the tenure is over, you get the lump sum amount.

Check Ideal Investment Tenure, Risk and Tax Maturity of Recurring Deposits

  • Ideal Investment Tenure: 6 months to 10 years
  • Investment Risk: Low
  • When to Invest: Anytime
  • Deduction on Investment: N/A
  • Tax on Maturity Value: On the interest earned (no TDS charged if the interest earned is INR 10,000 or less)

2. Fixed Deposits

Fixed Deposit has been considered by people of all age-range for many years. If you can put a lump sum corpus, you can certainly choose FD. You can get high returns from FDs.

Check Ideal Investment Tenure, Risk and Tax Maturity of Fixed Deposits

  • Ideal Investment Tenure: 7 days – 10 years
  • Investment Risk: Low risk
  • When to Invest: Anytime (the earlier you start investing, the better it is)
  • Deduction on Investment: TDS is deducted at a rate of 10% on FD interest. However, without a PAN card, this rate is 20%.
  • Tax on Maturity Value: N/A

3. Mutual Funds

One of the top one-time investment plans is a Mutual Fund. Investing in mutual funds is good for people who have a shorter investment horizon. The funds are risk-averse. You can expect high returns out of investing in mutual funds.

Check Ideal Investment Tenure, Risk and Tax Maturity of Mutual Funds

  • Ideal Investment Tenure: Varies
  • Investment Risk: High
  • When to Invest: Anytime when you are ready
  • Deduction on Investment: As per section 80C of the IT Act
  • Tax on Maturity Value: Taxable

4. Liquid Funds

Liquid funds are basically debt funds that are invested in short-term assets such as treasury bills, government securities, commercial paper, etc. Liquid funds usually are stable and so are your returns.

Check Ideal Investment Tenure, Risk and Tax Maturity of Liquid Funds

  • Ideal Investment Tenure: 3 years or less
  • Investment Risk: Medium
  • When to Invest: Anytime
  • Deduction on Investment: N/A
  • Tax on Maturity Value: Yes

5. Post-office term deposits

This is the kind of one-time investment plan that is apt for risk-averse people. The returns of this option are decided by the Government of India every quarter. The returns are generated at the current rate.

Check Ideal Investment Tenure, Risk and Tax Maturity of Post-office term deposits

  • Ideal Investment Tenure: 3 years or less
  • Investment Risk: Medium
  • When to Invest: Anytime
  • Deduction on Investment: N/A
  • Tax on Maturity Value: Yes

Know More: Safe Short Term Investments with High Returns

Best Investment Plan for 5 Years

The top one-time investment plans for five years are discussed herein below:

1. ULIPs

Unit-linked insurance plans are good for people who prefer long-term investments. As you choose this option, you can go for either low, medium, or high-risk investment options. The plans come with different levels of risk, and you should choose one as per your appetite.

Check Ideal Investment Tenure, Risk and Tax Maturity of ULIPs

  • Ideal Investment Tenure: 5 years (for tax benefits), 10-15 years (for pension)
  • Investment Risk:  Medium to high
  • When to Invest: As early as possible to gain from compounding money
  • Deduction on Investment:  As per section 80C of the IT Act
  • Tax on Maturity Value: As per section 10(10D) of the IT Act

2. Mutual Funds

Mutual Funds are another five-year one-time investment plan that you can go for. There are several types of mutual funds that you can choose from. You can pick one as per your risk-taking capacity.

Check Ideal Investment Tenure, Risk and Tax of Mutual Funds

  • Ideal Investment Tenure: Varies
  • Investment Risk: High
  • When to Invest: Anytime when you are ready
  • Deduction on Investment: As per section 80C of the IT Act
  • Tax on Maturity Value: Taxable

3. PPF and EPF

These are called savings-cum-tax-saving options with which you will not only be able to get high returns but also be able to save tax. In case of an emergency, you will be able to withdraw a certain amount of money.

Check Ideal Investment Tenure, Risk and Tax of PPF & EPF

  • Ideal Investment Tenure: Min. 15 years
  • Investment Risk: Low
  • When to Invest: Anytime for retirement or any other goal
  • Deduction on Investment: As per section 80C of the IT Act
  • Tax on Maturity Value: Tax-free

4. 5-year fixed deposits

This is a tax-saving FD. When you invest in this one-time plan, you will be eligible for tax deduction under Section 80C of the Income Tax Act. Upon maturity, this can be renewed.

Check Ideal Investment Tenure, Risk and Tax of 5-year fixed deposits

  • Ideal Investment Tenure:  Min. 5 years
  • Investment Risk: Low
  • When to Invest:  Anytime
  • Deduction on Investment: As per section 80C of the IT Act
  • Tax on Maturity Value: As per section 10(10D) of the IT Act

5. Stocks

For a long time, investment, stocks are a better option. If you invest in the stock market for a long time, you might get high returns. However, you should consider investing in stocks only if you have in-depth knowledge of them.

Check Ideal Investment Tenure, Risk and Tax of Stocks

  • Ideal Investment Tenure:   7 years or more
  • Investment Risk: High
  • When to Invest: The best time to invest in stocks is when the share prices of a given stock are low
  • Deduction on Investment: Depends
  • Tax on Maturity Value: Applicable

Know More: Best Investment Options with High Returns in India

Pros and Cons of One-Time Investment Plans

One-time investment plans come with certain advantages as well as disadvantages. Here are some of them mentioned herein below:

Advantages of One-Time Investment Plans Disadvantages of One-Time Investment Plans
Better returns: You can expect good returns out of one-time investment plans. Every subsequent year, interest is generated by dividends. You can invest the corpus for an entire term. Higher risk: Since the funds invested are related to market fluctuations, you may not even get good returns. One needs to have a risk appetite to choose from one-time investment plans.
Capital appreciation: Since the funds you invest depend a lot on the market, there are higher chances that you may get higher returns. No investment discipline: To invest, you would be required to pay a lump-sum amount. For this, you need to have quite a lot of funds available.
Minimal charges: Since you are making the payment once, the transaction fee will also be charged only once. Therefore, it will cost you lesser.

Also Read: Investment Options for Investing ₹1 Lakh for 6 Months

Things to consider while choosing a one-time investment plans for 2023

Before you choose a one-time investment plan, you need to consider certain points. Here are some of them mentioned herein below:

# Understand the market condition

Before you end up investing in a one-time investment plan, you first need to understand the condition of the market. Since you will be paying a lump-sum amount, you have to decide only after you know the market condition.

# Have an idea of the expected returns

As you consider a particular plan, you must assess its past performance and estimate the return that you may receive. Depending upon these two factors, you can choose the plan.

If you come upon a sizable amount that you wish to keep inflation free while waiting for the right use of the money, investing in a short-term investment plan is the best thing to do. It is also a great option for business owners and freelancers who receive lump sum payments to secure their financial future.

What are the Factors that Affect Plan Decisions on One-time Investment Plans?

 Below are some factors that affect One-time Investment Plan Decisions:

  • Choosing the plan decisively is important for the one-time investment policies. If not taken extreme care, you may lose all your money. Hence, select a plan prudently to enjoy the fruits of the investment
  • To gather enough information on the market situation and valuation is another important aspect to consider. The first thing is to understand the investment through research and choose the plan accordingly
  • Estimate in advance the returns you expect and the liquidity option available under a plan before jumping into the investment
  • Be patient with the investment as you may not see results immediately. Also, don’t panic or rush into conclusions
  • If you have enough funds lying inactively, it is better to use them and earn good returns with one-time investment plans

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FAQs: Best One Time Investment Plans for 1 year and 5 years in India 2023

Can I choose mutual funds for a one-time investment?

Yes, Mutual Funds can be a great option if you want to make a one-time investment. The single-payment mutual fund plans are referred to as Lum-Sum investment plans.

What are the one-time investment options?

Apart from mutual funds, other one-time investment options include fixed-deposit schemes, ULIPs, PPF & EPF, Stocks, Post-office term deposits, liquid funds, etc.

What are the 3 best investments?

Based on the returns, the 3 best investments are mutual funds, stocks, and liquid funds. If you are looking for lower risk than these options, you can invest in lower return options such as fixed deposits, Post-office term deposits, PPF, etc.

How to calculate a one-time investment?

You can use one of the online lump-sum investment calculators to estimate the returns by specifying the investment instrument and duration.

Which one-time investment plan is apt for 5 years?

The best one-time investment plans with a 5-year duration are 5-year fixed deposits, ULIPs, Stocks, Mutual Funds, PPF & EPF, etc.

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Dec 27, 2022
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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