Which is the Best Investment Plan in India for Middle Class 2021 ?

If you have been asking yourself, “Which is the best investment plan in India for middle class 2021?” then this article can be of immense help to you. Today’s economic scenario has forced almost everyone to think about investing in India. The sheer wealth of India can be gauged from the fact that it is the third-largest investor in the world. And, this position is further enhanced when you look into the different reasons keeping the Indians interested in investing their money. This article will learn what exactly makes India the best investment plan for middle-class citizens.

Let us Take a Look at the Top Best Investment Plan in India for Middle Class 2021

Public Provident Fund

The Ministry of Finance established the Public Provident Fund in 1968. It aimed to mobilize small fixed savings for investment in public goods and low-risk securities by providing an attractive interest income along with progressive taxation. You can invest the maximum of Rs 1,50,000 per year. This fund is covered by Section 80C, Income Tax Act 1961. The main intention of this PPF fund is to provide liquidity support to the middle class through different schemes. To receive the benefits of this plan, all you need to do is invest your savings in various public provident funds available in different Indian states. If you are eligible for the PPF, your contributions will be made automatically without formalities or documentation. You will enjoy the benefits of tax deferral, interest earned, and income tax deferment. Moreover, the interest on the deposited amount will be exempt from Income Tax. You can lock up your PPF for up to 15 years. PPF is a great investment option for long-term financial planning.

RBI Bonds

Among the various bonds to invest in, one of the more profound bonds is RBI Bonds. It is the second-largest unit in the stock market. The Reserve Bank of India issued 8% savings bonds until 2003. These bonds have a seven-year tenor. Investors can open the bonds in Demat format. These bonds are recognized as safe investments because the national apex issues them. The primary feature that makes these bonds very significant among the other investment-grade bonds is that they are issued by a government that is well recognized and also has a solid economic history behind them.

National Pension Schemes

National pension schemes are a specialized division of the national pension fund regulatory and development authority under the Ministry of Finance of India. The national pension scheme was set up to provide all benefits under a defined benefit pension scheme to its employees and eligible dependents. Under this scheme, an employer contributes to the fund of an individual worker who is neither covered by any provident fund nor registered under any scheme of funds available to the employees. National pension schemes enable the employees to choose among different options of pensions based on their retirement choices. There are various contributions schemes available to the members of the national pension schemes. NPS Tier-1 accounts now require Rs 1,000 per year as a minimum contribution; previously, it was Rs 6,000 per year. NPS invests in equity, bonds, and deposits. Investors have the freedom to select how much equity exposure they want to have based on their risk profile.

Debt Mutual Funds

So, which is the best investment plan in India for the middle class? If you want to profit even when the market is down, you must invest in the debt settlement field. All your economic moves should be based on your profit margins. Hence, this is the best investment plan in India for the poor people who are struggling with unsecured debts. Debt mutual funds invest in many money markets such as government bonds, high-rated corporate bonds. Debt mutual funds are designed to generate steady returns and capital preservation over time. Because they are not subject to the equity market, these funds are more secure than equity funds. These funds can be used to store money for a more extended period and earn compounded returns that will increase investors’ wealth. A mutual debt fund is also called a fixed income mutual fund. In general, debt mutual funds reduce the risk associated with investments in volatile market segments by investing more money in stable assets. It is perfect for middle-class people who do not have access to diversified investment portfolios. The main advantage of debt mutual funds over traditional investment avenues is the better returns.

Bank Deposits

Investing in bank deposits doesn’t entirely mean funds in a regular savings bank account. Savings accounts are not the way to make it rich. Bank deposits are not the best way to make money. You must either invest in fixed deposits or recurring bank deposits. Fixed deposits can be used by those who have a large amount of money to invest. Many people have benefited from bank deposits, as they have reduced their monthly expenses and live a more comfortable life. The most significant advantage of bank deposits is the security that is provided to its depositors. The depositors are assured of their security.


There are many other plans & schemes that you can choose for investing your money. The key factor is that you should know what your goals and objectives are, whatever your choice is. If you want to invest and know about “Which is the best investment plan in India for middle class 2021?” it would be best to determine your goals first. Moreover, if you do not have any goals, all these investment plans will not help you.

Also Read : How to Buy Stocks in India ?

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