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Best Investment Plans For 5 Years

Updated on: Feb 8th, 2023


9 min read

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Investments are integral to financial planning. Through investment plans, you can put your savings to use and multiply your wealth. Investment plans help you meet your financial goals more strategically. The first five years of investments are crucial as they decide your finances' direction and future developments. Here are some of the best investment plans for five years

Which Are The Best Investment Plans?

These are some of the top investment plans you can consider investing in India.  

  • Mutual funds 

Mutual funds are a pool of funds managed by fund managers who strategically invest the fund in different asset classes. Returns depend largely on market factors and fluctuations. You can earn a significant amount of return from minimal investments. 

  • Stocks 

Stocks are ownership shares of a company that is available for trading on stock exchanges. Stocks are an ideal investment avenue for long-term investors to earn generous returns. But as these are market-linked instruments, there is always a risk of loss. 

  • Fixed Deposit 

Risk-averse investors prefer fixed deposits over any other investment option due to their guaranteed and secure return. For further advantage, you can invest in tax-saving FDs. Even investors with high-risk appetites add FDs to their investment portfolios to mitigate risk. 

  • NPS 

NPS (National Pension Scheme) is one of the most preferred government-backed investment options. Your capital is invested in multiple asset classes such as bonds, government securities, stocks, etc. The lock-in period is determined based on the investor’s age as this scheme matures when you reach 60 years. 

Which Investments Are Best For 5 Years?

You might find some of the following investment options ideal for 5 years period. 

  • ELSS 

ELSS (Equity Linked Savings Scheme) is a mutual fund with a lock-in period of 3 years. Your investment of up to Rs.1.5 lakh is eligible for tax deduction u/s 80C of the IT Act. Also, a maturity amount of less than or equal to Rs.1 lakh is non-taxable as capital gains. 

  • ULIP 

ULIP or Unit Linked Insurance Plan combines insurance and investment plans. You can find this plan to be highly beneficial for its unique features such as premium protection, diversified asset allocation, systematic withdrawal option, tax exemption, etc. *

  • NSC 

NSC or National Savings Certificate works similarly to that of bank fixed deposits. It has a lock-in period of 5 years, and you can claim tax benefits on multiple occasions, such as annual interest accrued and investment amount. Also, the current interest rate applicable for NSC is 6.8% which is a little higher than bank FDs. 

  • FMP 

An FMP or Fixed Maturity Plan is a debt-based close-ended mutual fund that invests in debt instruments that mature along with the scheme. This is a perfect solution if you want the security of bank deposits but want higher returns. 

  • Liquid funds 

Liquid funds are a type of mutual fund that have a maturity period of 91 days. This investment option is ideal for those who want high liquidity and low tenure. However, returns are based on the performance of the assets as they are market-linked. Liquid funds are one of the best investment plans for the short term. 

How Can I Double My Money In 5 Years?

Doubling your investment in just 5 years in today’s market is not an easy task. But it’s not impossible. There is only one way in which you can double your money in 5 years and that is through mutual funds. Despite the market risks, mutual funds can earn significant returns in 5 to 6 years. This is because mutual funds offer higher returns than any other investment option and higher risk.

If you invest in long-term mutual funds, they offer an interest rate ranging between 12% and 15% year over year. This has the potential to double your investment in 5 to 6 years. 

Which SIP Is Best For 5 Years In SBI?

SBI SIP plans are popular investment options. You can earn considerable returns by investing a minimal amount at regular intervals for a long period. Here are the top 5 SIP plans of SBI: 

SBI SIP Plan3 Years CAGR 5 Years CAGR 
SBI Focused Equity Fund26.50%20.60%
SBI Bluechip Fund20%15.10%
SBI Small Cap Fund29.20%23.80%
SBI Equity Magnum Fund20.40%16.50%
SBI Large & Midcap Fund21%17.40%

Note: Data as of 2 February 2023. 

Which Investment Has The Highest Return?

Multiple investment avenues offer high returns, but as per market history, equity investments offer the highest returns beating inflation. However, as equities offer market-linked returns, there is also a high risk of capital loss. Hence, this is only advisable for investors with a high-risk tolerance. 

Which Is The Best Monthly Investment Plan?

There are multiple options available in the market when it comes to the best investment plan for monthly incomeSome prominent ones include SIPs, Pradhan Mantri Vaya Vandana Yojana, Senior Citizen Saving Scheme, and Monthly Income Scheme. 


There are multiple options available for the best investment plans in India for 5 years. The best option for you, however, depends on your risk tolerance, financial objectives and investment horizon.


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