Top Investment Options for Investing ₹1 Lakh for 6 Months – Know Where and How to Invest 1 Lakh

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Updated on Nov 28, 2022

How to Invest 1 lakh in India and What are the Top Investment Options for Investing Rs 1 Lakh for 6 Months

To lead a wholesome and steady life, you need to make your investments meticulously. Every person should choose the right financial platforms to get sufficient returns in a shorter period. But not all one time investment plans would offer you the best return. Thus, you should thoroughly assess your needs like corpus or monthly investments before making any investments. Your investment returns will not only strengthen your financial portfolio but also will help you to combat inflation. In this article, we are going to explain where to invest 1 lakh rupees for 6 months and the best investment options for investing 1 lakh in India for short term.

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7 Best investment options One Can Choose for 6 months for Rs. 1 lakh 

Before investing a single penny, don’t forget to weigh your financial needs and objectives. Once your fund is decided (Like Rs. 1 lakh), then you can start looking for the best investment options in India for short term. Here is how to invest 1 lakh

1. Recurring Deposits

If you want the best option to invest money for 6 months, then this could be your ideal choice as this type of option offers flexibility in terms of investment. You may get a 3.50% to 5.50% average return every year. The policy tenure period could be 6 months inventment plan to 10 years.

Benefits of Recurring Deposits –

  • The minimum amount is not fixed for all banks. Your minimum investment could be Rs. 10
  • The minimum and maximum investment periods are 6 months and 10 years respectively
  • The best investment options for salaried person due to this regular saving option
  • The rate of interest could be the same as a fixed deposit
  • You can take a loan against the deposit
  • Documents required (KYC, Identity and address proof, passport size photographs and the duly filled application form)
  • An individual from any walk of life, be it one working in  government as well as corporate or commercial organizations can go for this investment option

Also Read: RD Interest Rate In Post Office

2. Money Market Account

These are also called Money Market Deposit accounts which are interest-bearing accounts at a bank or a credit union. By opening this type of account, you may get a higher interest amount than a normal savings account.

Benefits of Money Market Account –

  • This type of account enables you to invest money for short term
  • You will get insurance protection
  • You will get a higher rate of interest
  • You may get debit cards against your account

Also Read: How To Save TDS on Salary

3. Debt Instruments

This type of investment option offers a fixed rate of interest to customers. It could be either paper or digital form. They offer higher returns as compared to fixed deposits. Some common debt instrument examples are,

Debentures: These securities are not supported by any security. They are allotted to raise medium and long-term funds.

Bonds: These can only be issued by the government, central bank, or big companies. They offer fixed interest rates to the moneylender. You will get the principal amount once the tenure period is completed.

Mortgage: You will get a loan against your residential property. If you can’t make payments, the property will be seized or sold out to repay the loan amount.

Treasury Bills: This is one of the best investment options in India for short term. These short-term debt instruments mature within a year and you can only claim the amount after the maturation.

4. Bank Fixed Deposits

This is one of the best investment options for beginners as it will enhance your savings gradually. Since this type of investment offers security, hence they are the best investment options in India for short term. You will get a rate of interest between 3%-7% for FDs per annum.

Some Highlights and Advantages of Bank Fixed Deposits –

  • Offer lucrative interest rates to customers
  • You can easily open accounts at your nearest bank
  • This investment option is ideal for short-term periods
  • You can get more interest amount with a reinvestment deposit
  • You can comfortably transfer funds between accounts
  • Go with the tax laws
  • You may get multifarious scheme options and minimum investment options

Also Read: 1 Crore FD Interest Per Month

5. Post-office Time Deposits

This is one of the popular investment options for senior citizens. This scheme comes up with the below-mentioned features,

  • The scheme offers you various lock-in periods as per your choice
  • You are eligible for income tax benefits
  • You may get astonishing returns
  • Revision and determination of rates are also offered
  • The scheme provides you with a minimum deposit amount
  • You can select premature withdrawal in case of urgency

Advantages of Post-office Time Deposits – 

  • You may open various accounts as per your needs
  • You can transfer your one post office account to another comfortably.
  • The funds can be withdrawn prematurely
  • This type of investment offers more security as the principal and interest amounts are guaranteed by the government.
  • The scheme offers you a flexible option. You may start with Rs. 250
  • You are free to select your nominee
  • Section 80 C of the Income Tax Act, 1961 is applicable for a tax deduction if the tenure period is a minimum of 5 years

Also Read: Post Office Online Payment

6. Corporate Deposits 

These are known as company fixed deposits where you may invest your hard-earned money for a particular period at a fixed interest rate. This type of scheme is only offered by NBFCs and other financial institutions. You may get a higher interest rate than a normal bank deposit. Some examples are,

  • HDFC Ltd FD
  • Bajaj Finserv FD
  • PNB Housing FD
  • Sundaram Finance Company FD
  • Mahindra Finance FD Scheme

7. Large-cap mutual funds

This type of scheme is one of the best investment ideas in India as it invests 80% of the corpus in the eminent 100 companies by market capitalization. Some popular advantages that you may get from this investment option are,

  • These companies have unprecedented market reputations in their respective fields
  • The risks are minimal as they offer stable returns
  • These investment options are ideal for those who want to avoid extreme volatility in the stock market

If you are thinking about where to invest Rs.1 lakh for 6 months, then the aforementioned information will help you to make a wise investment decision. But before investing any money, do thorough market research and try to enhance your knowledge of investments. To get the best results, you may consult with a professional finance person who will guide you on your investments.

Found this post informational? 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.

 

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FAQs on Top Investment Options for Investing ₹1 Lakh for 6 Months

Where to Invest 1 lakh?

If you have 1 lac rupees and are looking for a profitable opportunity to invest for faster returns, here are the top 5 avenues to consider:

1. Public Provident Fund
2. Sovereign Gold Bonds
3. Equity Mutual Funds
4. Gold Exchange-Traded Funds
5. Government Bonds

Which mutual fund is best for 1 lakh investment?

The following mutual funds are considered the best if you’re interested in investing Rs. 1 lakh:

Quant Tax Plan Growth Option Direct Plan
Axis Bluechip Fund Growth
SBI Technology Opportunities Fund Direct-Growth
Aditya Birla Sun Life Tax Relief 96 Growth
ICICI Prudential Technology Fund Growth

Which investments have the highest returns?

To earn the best returns on your investments, you may consider the following options:

Fixed Maturity Plans
Saving Account
Treasury Bills
Short-Term and Ultra Short-Term Funds
Gold Investment
Liquid Funds
Equity Linked Saving Schemes (ELSS)

What is the #1 safest investment?

Public Provident Funds or PPFs are by far considered the safest bet in terms of investment with high returns as well.

Jul 13, 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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