Best Investment Options for Non-Salaried Persons in India 2026

Written by : Knowledge Center Team

2025-11-28

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7 minutes read

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If you are a non-salaried person or individual running a business, the first place you would want to invest is in the business itself. However, in the long run, you will be in a better financial position if you build financial assets separate from your business. Investments like unit-linked insurance plans are easy to make and monitor. Moreover, they are market-oriented, thereby promoting investment growth over time.

Let’s learn more about how ULIP plans are among the best investment options for non-salaried individuals.

Key Takeaways

Investing helps you stay strong during income gaps or when clients delay payments.
Savings grow better when tied to clear goals like education or buying your own home.
ULIPs offer life cover along with market-linked growth and flexible investment options.
NPS helps you save for retirement with flexible choices and strong regulatory oversight.
PPF gives tax-free returns and shields your funds from business-related financial risks.

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How to be a Mindful Non-salaried Investor?

Before we get into the specific investments, there are a few rules of investment you should keep in mind. Following these rules does not have any direct impact on how your investments perform, but they affect your peace of mind.

Invest the income from high-risk assets and investments into safe instruments.
Invest the income from safe investments into high-risk investments.
Always save for retirement.

Following these rules will keep you not only satisfied with your investments but also make you financially independent from your economic activity.

What are the Top 3 Investment Options for Non-salaried Persons?

Fortunately, we have many investment options available to meet all these objectives. Considering you would want different options for frequency of investment in a year, the best of these investments are as follows:

Unit Linked Investment Plans (ULIPs): These versatile investment plans are the best mix of all the investment options and are also the most tax-efficient. You can invest in equity, debt or balanced funds or a mix of all under the same plan. ULPs also enable you to enjoy 80C deductions for invested money and deductions on maturity proceeds and withdrawals as well.
Thus, investing in ULIP could mean tax-free money all around. Also, ULIPs have an inbuilt life cover as well, which adds to your family’s financial security. Talking about financial security, ULIPs are the only investment which can ensure that your family can meet their financial goal even after your early demise.
Assume you want to accumulate ₹50 lakh in the next 20 years. You estimate that you can achieve this by investing ₹1 lakh every year.
The insurance policy will pay ₹10 lakh (life cover) to your family immediately. However, the plan will continue, as the insurer will invest the remaining premiums as they are due. At the time of intended maturity, your family receives the total accumulated fund value from the policy, i.e. about ₹50 lakh.
Thus, you can use ULIP plans to invest in the important financial goals of your family, such as your child’s education and marriage.
ULIPs as Retirement Investment: If used correctly, ULIPs could be the best investment for your retirement. This is the only investment which allows you to generate a tax-free pension after retirement. But to achieve that, you need to start long before you want to retire.
Even when you have retired, you can withdraw from other retirement investments, such as pension plans and such and keep adding funds to your ULIP plan.
Although pension is taxable, you can still withdraw up to ₹5 lakh a year with zero tax liability from pension funds. You can also withdraw an additional ₹1.5 lakh and invest it in the ULIP plan.
As you claim this additional withdrawal as a deduction under section 80C, you turn your taxable income into a non-taxable one. You can simultaneously keep withdrawing funds from ULIP to meet your needs.
National Pension Scheme (NPS): The National Pension Scheme has two investment options, Tier-1 and Tier-2. You can open a Tier-2 account once you have a Tier-1 account. A Tier-1 NPS account is specifically for retirement and remains locked until you reach 60. Contributions made to Tier-1 are eligible for tax benefits under Section 80C and an additional deduction under Section 80CCD(1B). Once you have an active Tier-1 account, you can also open a Tier-2 account.
This is a voluntary savings account with no lock-in and allows more flexible withdrawals. Although Tier-2 does not offer tax deductions, it provides liquidity for those who want access to their funds at any time. Both accounts offer you the flexibility to select your preferred asset classes, tailored to your risk tolerance and investment objectives.
NPS is regulated by the Pension Fund Regulatory and Development Authority, making it a credible and transparent option for retirement planning.
Public Provident Fund (PPF): PPF is one of the safest long-term investment options. With tax-free entry and exit, this is one of the safest investments where you can invest completely tax-free. The plan has a lock-in period of five years for partial withdrawals and 15 years for maturity.
You can extend the account in batches of 5 years after maturity. The only limitation the PPF account has is that you cannot invest more than ₹1.5 lakh a year. The maximum investment limit of PPF follows the 80C deduction limit closely. So, it may increase in future if the 80C limit moves.
Apart from that, PPF investments are perhaps the best when it comes to investing safely for your family, especially if you are self-employed. A PPF account cannot be attached by your lenders, and thus, it is a must-have account for every business owner.

Why You Must Invest as a Non-salaried Individual?

As a non-salaried individual, a fixed flow of funds is essential for a smooth financial journey. Investing helps you stay in control even when your earnings vary. It builds security and ensures your money continues to work for you in the background.

Here are five important reasons why you should start investing early and regularly as a non-salaried individual:

Build a Financial Cushion During Lean Periods: Your income may fluctuate from month to month. When business slows down or clients delay payments, having invested money gives you something to fall back on. A strong portfolio can ensure that your lifestyle or responsibilities are not compromised during tough phases.
Achieve Life Goals with Better Clarity: Every person dreams of buying a home, travelling, or funding their child’s education. These goals need money and discipline. Investments help convert uncertain earnings into purposeful savings. Even small contributions made regularly can grow into significant amounts when managed wisely.
Stay Ahead of Inflation: Your money loses value over time if it just sits idle in a savings account. Investing helps your funds grow faster than inflation, which means you can afford the same lifestyle tomorrow without spending more. It helps protect the real value of your wealth.
Secure Your Future Without Employer Benefits: Salaried individuals often receive added perks like PF contributions, gratuity, and health insurance. As a non-salaried professional, you are your own provider. Investing is one of the best ways to create a safety net, allowing you to avoid relying on others for long-term needs such as retirement or medical emergencies.
Invest for Family’s Financial Security: Investing for your family means creating a support system that works quietly in the background. Smart investments offer the assurance that their future will not be affected by life’s uncertainties. They become a shield in tough times and a ladder in moments of opportunity. Over time, this creates a strong financial foundation that brings peace of mind to everyone under your care.

Conclusion

Though there are many investment options in the market, these top investment options, especially ULIPs, are uniquely predisposed for the self-employed. Whether it is taxability, investment tenure, financial safety or your retirement, these investments can fulfil all the roles.

However, while you are investing, remember the rules of investment for long-term peace of mind. Among many rules, having a reliable insurance partner is crucial when it comes to ULIPs. At Canara HSBC Life Insurance, we provide you with insurance plans that also have secure investment components. You can even calculate the returns to foresee the return on your investments.

Planning to invest for financial security? Let’s connect today!

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

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