5 min read
Updated on Sep 20, 2023
Regardless of the amount, planning an investment wisely is important. In this post, we are exploring certain options of savings and investments with INR 5 lakh for one year to achieve some of your investment goals.
There are some careful considerations required in terms of risks and benefits while investing INR 5 lakh for one year to get desired returns.
Your investment goal implies what you are aiming to achieve from your particular investment, which help you decide where to invest 5 lakh for monthly income
There is an amount of risk involved in almost all investment tools. It can be low or high depending on the scheme and the returns offered. You must choose the investment that balances your risk evaluation in terms of the rewards
It is very important to diversify the investment portfolio to manage the risks and to earn better returns
The tax saving plans and investments are good to consider as they help in saving a huge amount of tax. So, consider tax implications while looking for investment schemes to serve your investment purpose
The market is always changing with new products being introduced every now and then. Hence, it is good to stay informed about the latest in the market to make better decisions and required adjustments
If you want to invest INR 5 lakh for a tenure of 1 year, you have many options in the market to choose from. Just remember to pick an option that makes you comfortable in terms of your financial goals, the amount of risk you want to take and the prospect of investment it offers.
Below are some good investment options available in India:
When it comes to a safe and guaranteed return plan in India, you can trust the fixed deposit (FD) option. For investing INR 5 lakh for one year, you have to look for a bank that offers a high rate of interest on your one-year fixed deposit scheme. Generally, the FD interest rate varies within 5 to 7%. You can use a fixed deposit calculator to estimate the return you can earn from an FD scheme for your INR 5 lakh
Another low-risk scheme is the debt mutual funds, which invest in instruments of fixed-income like that of government securities and corporate bonds etc. These funds are less in terms of risk as compared to equity mutual funds and high in terms of returns as compared to many other funds
Yet another good investment option to invest 5 lakh is the POMIS. It is again a government-backed scheme giving you a fixed amount of return on your investment. This is definitely one of the best investment options for monthly income. However, the tenure of the plan is 5 years, while the rate of interest offered is around 7.4%. But this best options for monthly income scheme is a safe and secured plan which you can consider to earn good returns
Real estate is never out of demand. With the rising rate of properties, investing in real estate definitely offers the best return. You can simply follow the traditional way of buying property and rent it out to tenants or sell it after a few years to get an enhanced rate. You can also invest in real estate via REITs, where you can invest in multiple real estate assets with your single fund to earn better returns
If you can extend your tenure and invest in long-term plans, PPF would be the best option for you. This is a scheme that allows tax benefits and offers returns of around 7.1% per annum. However, the tenure of the term is 15 years but you don’t have to pay tax on the return amount.
This is a highly risky option of investment that offers equally high returns. Under this scheme, you can invest in company stocks that are performing well and have growth potential. However, being risky you can’t invest your entire amount under this scheme and must work on a diversified portfolio
Gold is another option of investing your INR 5 lakh to earn better returns. Gold is considered an investment that never goes out of trend. To invest in gold, you can use gold ETFs or gold mutual funds. However, you must remember that the prices of gold vary as per market risks
You need to consider carefully while investing INR 5 lakhs for one year. Look out for the various options available and choose prudently. Keep an eye on the investment performance of various policies and make an informed decision. You can make use of goal-based investment calculators to check how much you can earn on your investment.
Browse Mahindra PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit Mahindra PayBima to Buy Insurance Online.
Here are some options:
~ Post Office Monthly Income Scheme (POMIS)
~ Long-Term Government Bonds
~ Corporate Deposits
~ Monthly Income Plans
~ Equity Share Dividends etc.
Here are some ways to make money from INR 5 lakhs:
~ Use alternative investment options
~ Diversify your portfolio and invest in multiple schemes
~ Invest around 40% of savings in mutual funds
~ You can invest in Crypto currency as well
You can deposit a small fixed amount every month on a recurring deposit. At the time of maturity, the amount will be credited to your linked account.
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.
For many risk-averse Indian citizens, an FD account is the safest and the most reliable means of securing a lump sum amount in a couple.
Have you ever delayed your ITR filing task until the last moment due to its difficulty? Income Tax Returns, commonly termed ITR, is a form.
Suraj was recently blessed with a daughter, and he wanted to invest in a safe and guaranteed scheme to save some money for her school.
When Sahil lost his job a couple of years back, he was devastated as he had a family of 6 to look after, which was.
Are you well-informed about the various schemes offered by your state government, especially the ones for the old, needy and people with low incomes? Do.
When Soha, a single mother, was considering different investment options to invest INR 10 lakhs for her daughter’s higher education, she wanted a risk-free and.
The Swatantrata Sainik Samman Yojana (SSSY) was introduced as a token of gratitude to the freedom fighters for their contributions to free India. Let’s learn.
As you embrace parenthood and enjoy the bliss of having a child in your life, you also prepare yourself to shoulder some responsibilities of the.
With the changing times, the perspective of women in society has experienced a sea change. From being labelled as a housewife to someone who has.
When it comes to investing in a good financial/investment scheme, there are a host of products available in the market to choose from. Some offer.
Speak to our advisor
Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800
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.
Verify your number to activate your best premium offer
Please enter the OTP sent to XXXXXX 4099 to continue