Best Investment Plans For 5 Years

The best investment plan in India helps grow wealth, generate regular income, and achieve financial goals. 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.

Key Highlights

• Options: Mutual funds, stocks, FDs, and NPS are popular investment choices.
• Five-Year: ELSS, ULIPs, NSCs, FMPs, and liquid funds suit 5-year investing.
• SIPs: SBI offers several SIP funds with strong historical returns.

Which Are The Best Investment Plans?

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

I. 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. 

II. 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. 

III. 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. 

IV. 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?

The following investment options ideal for 5 years period: 

I. ELSS 

ELSS (Equity Linked Savings Scheme) is a mutual fund with a lock-in period of 3 years. An investment of up to ₹1.5 lakh is eligible for tax deduction u/s 80C of the IT Act (applicable under the Old Tax Regime). Also, long-term capital gains (LTCG) up to ₹1.25 lakh per financial year are tax-exempt, while gains above ₹1.25 lakh are taxed at 12.5%.

II. ULIP 

A 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. *

III. NSC 

NSC, or National Savings Certificate, works similarly to 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 7.7%, which is a little higher than bank FDs. 

IV. 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. 

V. 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?

While equity mutual funds and direct stocks offer high return potential, no investment offers guaranteed doubling in 5 years. 

Which SIP Is Best For 5 Years In SBI?

The top 5 SIP plans of SBI are as follows: 

Note: Data as of 2026. 

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 income. Some prominent ones include Systematic Withdrawal Plans (SWP) in Mutual Funds, Senior Citizen Savings Scheme (SCSS), Post Office Monthly Income Scheme (POMIS), and Bank Fixed Deposit Interest Payouts. 

Final Word

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.