Sr. No.
| Types of One-time Investment Plans
| Ideal Investment Period
| Right Time to Invest
| Tax Benefits On Investment Amount
| Tax Benefits on Maturity Amount
| Risk Factor
|
1
| ULIPs
| For tax benefits, wait 5 years.
For retirement planning, allow 10-15 years
| Invest early to enjoy compounding benefits
| Tax deductions under Section 123 of the Income Tax Act, 2025 (earlier Section 80C
| Tax benefits under Section 11, read with Schedule II, Sr. No. 2 of the Income Tax Act, 2025 (earlier Section 10(10D), subject to premium-to-sum-assured conditions
| Medium to High
|
2
| Equity Funds
| 5 years and above
3 years for the ELSS Scheme
| If you have extra money available for a long period of time
| ELSS: Deductions under Section 123
| LTCG above ₹1.25 lakh in a tax year is taxed at 12.5%; gains held for less than 12 months are taxed at 20% (STCG)
| High
|
3
| Debt Funds
| 3 years & more
| Invests for less than 5 years
Tax implications are lower if you invest for more than 3 years
| N/A
| Taxed at slab rate irrespective of holding period. No indexation or LTCG benefit, as per the Finance Act 2023
| Low
|
4
| Liquid Funds
| 3 years or less (if it's not a SIP)
| If you have not yet decided on the best long-term investment plan in India
| N/A
| Taxed at slab rate irrespective of holding period, no indexation benefit, as per Finance Act 2023
| Medium
|
5
| Fixed Deposits (FD)
| 7 days to 10 years
| Depending on your investment horizon, when you want to avoid market-volatility risks
| N/A
| N/A
| Lowest
|
6
| 5-Year Tax Saving FDs
| Minimum 5 years to gain tax benefits
| Extra funds can be used to reap the tax benefits of fixed returns
| Tax benefits under Section 123
| Interest earned is fully taxable at your applicable income tax slab rate; no exemption applies
| Lowest
|
7
| Public Provident Fund(PPF)
| For a stable and high-returning corpus, 15 years is recommended
| As a safe investment for the retirement period
| Deductions under Section 123 of the Income Tax Act 2025 (earlier Section 80C of the Income Tax Act, 1961)
| Tax-free returns
| Lowest
|
8
| Sukanya Samriddhi Yojana (SSY)
| SSY account up to 21 years or until the girl child marries
| Providing tax benefits while creating a fund for the education of girls
| Tax deductions under Section 123
| Interest earned and Maturity amount are tax-free
| Lowest
|
9
| National Pension Scheme (NPS)
| Till the age of 60-70 years
| A one-time investment plan that creates a retirement fund and provides tax benefits
| Benefits under Section 123 and Section 124 of the Income Tax Act, 2025 (earlier Section 80C and 80CCD of the Income Tax Act, 1961)
| 60% of the lump sum withdrawal is tax-free; the remaining 40% used for annuity purchase is exempt at purchase, but annuity income is taxed at the slab rate
| Low
|
