5 min read
Updated on Mar 17, 2023
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.
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.
There are various types of one-time investment plans such as:
These are further divided into 1-year one-time investment plans and 5-year one-time investment plans. Let us discuss them both.
Some of the best one-time investment plans for 1 year are as follows:
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.
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.
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.
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.
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.
Know More: Safe Short Term Investments with High Returns
The top one-time investment plans for 5 years are discussed herein below:
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.
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.
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.
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.
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.
Know More: Best Investment Options with High Returns in India
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
Before you choose a one-time investment plan, you need to consider certain points. Here are some of them mentioned herein below:
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.
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.
Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.
View this post on Instagram
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.
Apart from mutual funds, other one-time investment options include fixed-deposit schemes, ULIPs, PPF & EPF, Stocks, Post-office term deposits, liquid funds, etc.
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.
You can use one of the online lump-sum investment calculators to estimate the returns by specifying the investment instrument and duration.
The best one-time investment plans with a 5-year duration are 5-year fixed deposits, ULIPs, Stocks, Mutual Funds, PPF & EPF, etc.
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.
Senior Citizen Savings Scheme (SCSS) commonly known as SCSS is a government backed savings option for elderly citizens of India. Let us understand this well-designed.
Fixed deposit (FD) is an investment option that allows an investor to invest funds for a fixed tenure to earn good returns at fixed rate.
The best thing about investing in a Fixed Deposit is that it is a risk-free product that helps investors to earn good returns. You can.
Have you ever come across a situation where your family members started convincing you to open an RD account since you are financially independent now?.
Fixed Deposit (FD) is a secured investment option that allows the investor to gain guaranteed returns. However, there are occasions you may have to withdraw.
If you want to calculate the income tax to be paid on your salary, you have to understand the tax laws and tax jargon. This.
Old age is the time when people face greater challenges in life which get worse due to the financial crisis. Hence, saving in advance to.
Bank of India (BOI) is a reputed name in India’s banking sector and offers a wide range of products and services to its customers. In.
Goods and Services Tax was introduced in India in 2017 and it soon made headlines. The reform touched almost all sectors as well as the.
When it comes to securing your family monetarily after you are gone, you can trust life insurance policies by LIC for sure. In this post,.
Speak to our advisor
Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2023 Mahindra Insurance Brokers. All Right Reserved.