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Best Investment Plan For 5 Years: Find Your Best Option Now

For most, A short-term investment seems more logical and achievable. It is not just the upcoming goals or expenses, but many people see a period of less than 5 year to be a safer option which helps them to choose best investment plan with high returns. Investing for a longer period of 10 or 20 years might be a little difficult for someone who is in the beginning of their investment journey. 

If you are looking to save money that is for your not-so-distant future, then 5-year investment might be a great option. These plans not just minimize the risk but also provide high returns as well.

If You Are Looking For The Best Investment Plan For 5 Years, Consider The Following:

  • ULIPs

  • Fixed Deposit

  • Post Office Time Deposit

  • Liquid Funds

  • Recurring deposits

  • Large Cap Mutual Funds

1: FMPP®

FMPP® stands for Fixed maturity peer to peer investment plan. Peer to peer lending brings lenders or investors (both individuals and companies) directly to borrowers who are looking for loans cutting out 3rd party financial institutions as the middle men. It is a non-market linked investment. 

Features and Benefits
  • It helps you invest money in non-market-related products, saving you the market volatility stress.
  • Higher returns than usual debt investment products.
  • Yield, compounded returns on your investment.
  • Flexible tenures of 1 year – best investment plan for 1 year, 2, 3, 4, and 5 years
Return Rate

The returns also depend on the tenure of investment. While the returns may vary from investor to investor, 100% investors have earned between 10 to 12% p.a. based on returns earned in Sep., Oct., and Nov. 2022. 


The only eligibility criteria for investing in FMPP® is that one should be an adult Indian citizen with valid PAN and Aadhaar card, 

Risk level

FMPP® comes with a one risk factor that you may cater for as a lender, the borrower may default.  But Chances of that affecting your returns are low as FMPP® practices hyper diversification which means allocating funds as low as 1rs to the borrower for mitigating risk to a margin.  

FMPP® Return Example
How to Invest in FMPP®?
  • Set up your account with LenDenClub

Keep your bank details and KYC handy

  • Choose your terms

Choose tenure of 5 year for maximum yield

  • Invest

Add your investment amount to create FMPP®

2: ULIPs

ULIP stands for Unit Linked Insurance Plan. It is a multi-faceted product that gives life coverage with the benefits of marketplacerelated investment

Features and Benefits
  • It enables you to invest cash in marketplace-associated products according to your risk appetite.
  • A long-term saving option that gives twin benefits.
  • You can save on taxes with those tax-saving schemes as they arrive beneath Section 80C and 10(10D).
  • You have the liberty to switch among your investment price range.
  • Most ULIPs include a 5-yr lock-in period.
Return Rate

Analyzing return rates for ULIPs may not be totally viable because the recurring commitment of premium regularly creates a detail of indiscipline. The returns additionally depend upon the tenure of funding. While 3-yr returns can variety among 6.6% to sixteen.81%, 5-yr returns can cross from 9.21% to 24.43% as well*.


Most organizations have easy eligibility criteria for buying ULIPs. The access age can range among 7 to 70 years for Indian residents.

Risk level

ULIPS include a certain threat element that you could bear for as an investor, however due to the fact you’ve got the liberty to pick out and transfer among funds, you could put money into ones that match your portfolio – Debt price range, Equity Funds or Balanced Funds.

How to Invest in ULIPs?
  • Do marketplace studies to shortlist the best-appropriate options
  • Understand the capabilities of every scheme after which choose one
  • Get in contact with the officers and enquire about the product’s details
  • Make the acquisition when completely satisfied

3: Savings Account Fixed Deposit

A Savings Account FD is one of the most secure and best investment plan to develop your cash. It grows at a set interest fee for a set tenure. You may also pick the tenure. There are numerous banks and NBFCs that provide the ability of a Fixed Deposit.

Features and Benefits
  • Get confident returns with no fluctuations
  • You can renew your FD after its adulthood
  • Senior citizens can  get higher interest rate Savings Account Fixed Deposit

A Savings Account FD is one of the most secure methods to develop your cash. It grows at a set interest fee for a set tenure. You may also pick the tenure. There are numerous banks and NBFCs that provide the ability of a Fixed Deposit.

Return Rate

The interest rate on Fixed Deposits relies upon various factors just like the tenure selected for the FD and the quantity of funding. The fee may additionally range from organization to organization providing the FD plans. You can use virtual calculators provided with the aid of using your chosen financial institution/ NBFC and get a concept of the go back fee that you’ll be enjoying.


Any individual, employer, NRI, joint traders, society, firms, etc. can open an FD account. People above the age of 18 years can open an FD account of their favored financial institution or NBFC. Apart from the adults, the minors also are eligible for establishing an FD below the steerage of a guardian.

Risk level

A fixed deposit is taken into consideration to be one of the most secure investments. It isn’t tormented by marketplace fluctuations and offers confident returns. This is the purpose it’s far taken into consideration to be a chanceloose funding choice. But the risk lies in other factors for this investment such as inflation. Even though FDs provide consistent returns the rate of return doesn’t even beat the rate of inflation. Which means in the long run you might actually lose your money.

4: Post Office Time Deposit

The Post Office Time Deposit schemes are funding gear delivered with the aid of using the Indian publisher. Individuals from everywhere withinside the kingdom and of any age can observe those deposit schemes. The purpose is to make funding gear available to rural and far flung elements of India, because the human beings from such regions have constrained sources and facilities

Features and Benefit
  • Minimum deposit criteria, as less as ₹1,000
  • This is a tax-saving scheme that lets in exemption blessings at the obtained hobby below the segment 80C
  • Flexible lock-in length, pick a lock-in length of your choice
  • You also can withdraw your cash while you want it the most
  • Receive hobby fee in coins or cheque
Return Rate

The modern-day go back fee of the Indian publishfunding schemes varies from 6.9% to 7.7%. It relies upon how plenty you’ve got invested. You can make investments with a minimum of ₹1,000 and a maximum of ₹1,50,000.


Any Indian citizen above the age of 10 can observe for Indian publish time deposit schemes. For toddlers or more youthful children, dependents and guardians can make investments on their behalf.

Risk level

Investing in Indian publishfunding schemes entails much less to no chance because the plans are sponsored with the aid of using the authorities and feature a set go back.

How to Invest in a Post Office Time Deposit?

  • Sign up on the Indian Post respectable internet site
  • Under the General offerings choice, click on on “Service Request”
  • Request a “New Service”, fill in all of the requested information carefully
  • Make the preliminary contribution of a minimum of ₹ a thousand to get commenced with a funding scheme.

You also can observe those schemes with the aid of travelling to your nearest publishing office. Ensure you deliver all of the important files for KYC and your passport length photographs.

5: Liquid Funds

Liquid Funds are a kind of mutual funds with inside ninety one days. These price ranges are debt devices which encompass funding in authorities securities, treasury payments and business papers. Liquid price ranges are brief-termed hobby yielding, low-chance debt devices.

Features and Benefits
  • Come without a access or go out fee
  • No lock-in length
  • Instant withdrawal facility
  • Low-chance funding
  • Reasonable returns
  • Tax exemption blessings
Return Rate

The ROI from liquid price range in India is eight in line with cent on average, that is taken into consideration a long way higher than the returns of different saving accounts.


Anyone with a little cash seeking out a brief time period and low-chance funding alternatives can put money into Liquid Funds.

Risk level

The chance of making an investment in a liquid price range is minimal. They aren’t completely chanceloose and have difficulty with Interest  rate and credit score chance.

How to Invest in Liquid Funds?

You can put money into liquid price range from any funding portal of your choice. Aditya Birla Capitals is one such platform from which you could get correct funding alternatives.

6: Recurring deposits

Recurring deposits, or RDs, are every other funding tool with the aid of using the Indian publish in addition to banks. These RDs are intended for small traders and salaried personnel. Anyone with a bit to a first rate sum of money can put money into those schemes. To reap your monetary goals, you could pick the tenor beginning from 6 months to ten years.

Features and Benefits
  • Great manner to begin making an investment, despite a small amount
  • Higher returns than saving account schemes
  • Premature last of the account is to be had without a penalty
  • Get to pick from a tenor length from 6 months to ten years.
  • Loan facility to be had in opposition to your RD account
Return Rate

The go back fee of RDs is quite plenty much like the deposit schemes. The annual go back is 5.eight% pa That is plenty better than what you could get from a financial savings account.


Any authorities, organizations, corporates, and small organizations can observe for RDs from the Indian publisher. Also, an Indian citizen with a financial savings account and above the age of 10 is eligible to observe.

Risk level

RDs by and large include a guaranteed go back, making them a splendid funding choice for people with a low-chance appetite.

How to Invest in Recurring Deposits?

If you’ve got a financial savings account on the Indian publisher, you could open a recurring deposit account with the aid of internet banking/cellular banking or with the aid of traveling to your nearest Post office.

  • Visit the e-banking portal of Indian Post https://ebanking.indiapost.gov.in
  • Go the the “General Service” segment
  • Under the “Service Requests” click on the “New request”.
  • For making use of for an RD, pass the “RD account- open an RD account”
  • On the following page, input all of the requested information and input “Submit”
  • Pay the preliminary deposit; as soon as the transaction is successful, you may obtain all of your RD account’s adulthood information and month-to-month rates information on your screen.

7: Large Cap Mutual Funds

Large-cap mutual price ranges are the ones corporations which have a bigger marketplace capitalisation and who make investments a chief share into the marketplace. These are taken into consideration to be straightforward and well-installed corporations.

Features and Benefits
  • It consists of decreased chance publicity in comparison to the mid-cap or the low-cap mutual price range.
  • The returns are strong in assessment to different mutual price ranges due to the low-chance involvement.
  • It is one of the best picks for folks who are seeking out a long-time period of funding with strong returns.
Return Rate

The go back fee is exceedingly low in comparison to different mid-cap or low-cap mutual price ranges due to a decreased chance appetite. However, such a mutual price range offers you with higher stability.


Anyone who’s above 18 years of age can begin spending in a large-cap mutual price range. You simply want a DEMAT account and a dealer to start your funding.

Risk level

The dangers worried in large-cap mutual price range are pretty low in comparison to mid and low-cap mutual price range.

How to Invest in Large Cap Mutual Funds?
  • Visit the internet site of the employer you desire to put money into
  • Choose the scheme you locate the best
  • You want to duly fill and put up the utility form
  • Submit the desired files and make the acquisition with the aid of using paying the quantity


5 years is not a very long time to lock your money in an investment, nonetheless, not having the access to your money for an extended period of time should be worth it for your future self. That makes it important for you to go through every option thoroughly to make the best choice.

Nowadays, there are many investment options available in India. Unlike a few years ago, when FDs and equities were the only popular choices among people, various new-age investment options like FMPP® have emerged. 

On top of that, online marketplaces like LenDenClub further simplify the process for investors. Let us see how –

  • A family of more than 2 million people
  • AI-powered Auto investment
  • Allows diversification and reduces risk
  • Screens borrower’s profile through 200+ data points to reduce the risk of default.
  • 100% investors have earned between 10 to 12% p.a. based on returns earned in Sep., Oct., and Nov. 2022.
  • Market-risk free returns

Hop on the bandwagon with 2 million+ investors. Register now!

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.



The Reserve Bank of India does not accept any responsibility for the correctness of any of the statements or representations made or opinions expressed by Innofin Solutions Private Limited, and does not provide any assurance for repayment of the loans lent through its platform.

LenDenClub is an Intermediary under the provisions of the Information Technology Act, 2000 and virtually connects lenders and borrowers through its electronic platform via the website and/or mobile app.

The lending transaction is purely between lenders and borrowers at their own discretion, and LenDenClub does not assure loan fulfilment and/or investment returns. Also, the information provided on the platform is verified or checked on the best efforts basis without guaranteeing any accuracy of the data/information verification. Any investment decision taken by a lender on the basis of this information is at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower, fully or partially. The risk is entirely on the lender. LenDenClub will not be responsible for the full or partial loss of the principal and/or interest of lenders’ investment amounts.


*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

** Average value mentioned is the weighted average of returns received by investors

© 2023 LenDenClub by Innofin Solutions Private Limited | CIN: U74999MH2015PTC266499


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