A one-time investment plan is a type of investment where you make a lumpsum payment for a fixed period of time. Such an investment requires you to have a sizeable amount of money (around Rs 50,000 or more) and a risk-taking capacity.
Let’s learn about the best one time investment plans in India along with their features & benefits.
Also Read: What is Investment?
One Time Investment Calculator
You can use the one-time investment calculator to estimate the return on investment. All you need as input is the money invested, interest expected, and tenure. The amount you will be earning annually or by the end of the term will be calculated by this one-time investment calculator.
A one-time investment calculator is also popularly known as the lumpsum investment calculator.
Types of One-Time Investment Plans
If you’re looking for the best one time investment plan for your child or newborn baby, you may choose a simple savings scheme with guaranteed returns. Otherwise, you can choose to invest in a lumpsum investment with a higher risk-return capacity.
The below-mentioned are the different types of one time investment plans in India:
- Equity Funds: Equity funds are less risky than other one-time investment plans, as they offer a high return. Another benefit of equity is getting a tax rebate under section 80C by investing in Equity-Linked Savings Schemes (ELSS). The perfect lock-in period recommended is three years. Invest if you are sure you can keep the funds for a longer time.
- Debt Funds: If you are looking for the best one-time investment plan for a child, you can also invest in AAA or AA rated corporate bonds or government securities. They have less risk than equities and steadier returns, but you do not get a tax rebate in debt funds. You can invest in them for three years, as you get indexation benefits after that period.
- Liquid Funds: Investing a significant amount in liquid funds (like Edelweiss Liquid Fund, Axis Liquid Fund or Aditya Birla Sun Life Liquid Fund) is a smart choice when you have the money but do not have a robust long-term investment plan. In such case, you can let your money multiply while coming up with a good plan. Later, you can easily divert this investment to another plan of your choice at minimum to zero exit load.
This is an indicative list.
How Important is a One-time Investment Plan?
Most people go for a one-time investment when they have a large corpus to invest, the reason it is important to invest is that through investing the amount, the sum will keep increasing over time. It is the investor’s choice to keep the money or invest it, but investing smarty comes with many benefits including- low risk, heavy returns, and a safety net.
One Time Investment Plan – Factors to Keep in Mind
Before you start investing in a one time investment plan, you should consider the following factors so as to reap maximum return on your investment:
- Information on market valuations: The first thing to keep in mind while choosing the best one-time investment plan for child or adult is that you should have good knowledge of the market. In case of any doubts, you should consult an expert. Furthermore, it is essential to calculate the risk involved and return on investment before you choose any plan, and for doing that, you can use a one-time investment plan calculator.
- Liquidity: Considering the liquidity factor is important in a lumpsum investment as you won’t be able to retract funds prematurely if you wish to gain high returns. For this, note down your expenses and income. Now, calculate the amount available for investing, apart from savings, as it involves high risk. Only then should you proceed with the investment.
- Do not rush: The market can be volatile. It would help you a great deal if you remained patient and did not panic due to sudden dips. Choose the best one-time investment plan, and you will reap the benefits in time. One-time investment plans offer high returns, but this market is not for you if you want returns immediately.
One-Time Investment Plan: Benefits
The following are some of the advantages of putting your money in a one-time investment plan:
- No need to remember the payment dates as you need to make the payment once
- Higher returns as compared to monthly installments
- Low transaction charges
- No to low exit-load (e.g. liquid mutual funds)
- Better capital growth
- Hassle-free investment process
Disadvantages of One-Time Investment Plan
The following are few of the cons of a one time investment plan:
- Higher risk
- It is not a great option if you might need funds shortly
- Less investment discipline
One Time Investment: FAQs
You will need your address proof, ID proof, Income proof and recent photograph to invest in a one time investment plan.
Both plans are equally good. The one-time investment plan offers high returns, but it will also depend on your prerequisites and financial goals. If you like to invest a small amount, you can opt for SIP.
If you choose the one-time investment plan in a mutual fund, you cannot invest multiple times. You will have to invest all the money at once. That’s what the name itself say – “One Time Investment Plan”.
Many people invest in a one-time investment plan for a newborn baby for certain major goals like education, marriage, and providing a better lifestyle.
You need to input the total investment amount, invested return, and period for which you want to invest in the one-time investment calculator. It will calculate the estimated return on your investments.
