Best One-Time Investment Plan With High Returns in India

If someone had put ₹1 lakh into the Nifty 50 a decade ago, that amount would have grown to roughly ₹3.79 lakh by now, giving an annual return of about 14% (based on historical data as of December 10, 2025). This is one example of how a single, untouched investment can grow over time, though actual outcomes depend on market conditions. This article explains how one-time investment plans work, along with their benefits, tax treatment, and common mistakes to avoid.

1. What Is a One-Time Investment Plan?

In a One-Time Investment Plan, a single lump sum amount is invested instead of making regular payments. In this method, you can invest a significant amount in financial instruments that will generate returns over the years. 

The following factors should be kept in mind when selecting a one-time investment plan:

• Financial objective: Your purpose for investing shapes everything else. Goals that are only a short distance away usually call for safer, easy-to-access choices. When the goals are long-term, the high-growth options are more suitable.
• Risk tolerance: Risk-averse investors should go for corporate bonds or fixed deposits, which offer suitability. Investors with a  high-risk appetite should focus on growth options like stocks and equity mutual funds.
• Time horizon: The investment plans vary depending on the different time horizons of the investors. High-growth options should be chosen for longer duration and for shorter periods, you should look at safer choices.
• Liquidity: If you might need money soon, choose investments with easy withdrawal. If liquidity is not a concern, you can commit to long-term products that offer higher returns.
• Tax: Tax can silently deplete our returns. It becomes essential to invest in tax-efficient options which help to maximise the returns. 

2. Who Should Choose One-Time Investment Plans?

A one-time investment plan can suit a variety of investor types.

Young Professionals

Young individuals can use their bonuses or savings to make a lump-sum investment and build long-term wealth without making monthly commitments.

Conservative Investors

One-time investment plans are good for investors with lower risk tolerance, as they provide stability. They can choose safer options like government bonds and fixed deposits.

Non-Resident Indians (NRIs)

Unlike the West, India’s economy is still in its growing stage. NRIs can make a single heavy contribution to benefit from India’s growing economy, without the hassle of frequent transfers or ongoing contributions.

Retired Persons

At the time of retirement, people receive payouts. They can invest this money to generate a consistent income and protect their savings.

3. Benefits of One-Time (Lump Sum) Investing

A lump-sum investment has practical advantages that help in wealth creation over the long term.

1. Higher Returns

Lump-sum investing has the ability to generate stronger long-term returns because the entire amount benefits from market growth and compounding starts from the first day.

2. Convenience
A one-time investment is simple to manage. You put in the amount once and don’t need to worry about monthly payments or missed contributions afterward.

3. Flexibility
There’s plenty of choice – you can pick equity funds, hybrid funds, bonds, or government schemes depending on your goals and comfort with risk.

4. Diversification
The lump sum can be divided across different asset types, which helps spread risk and can improve the overall return potential.

5. Tax Benefits

Certain options like NPS offer tax advantages, allowing you to maximise your net returns.

4. Best One-Time Investment Plans with High Returns in India (2025)

Based on the risk tolerance, investment expectations, and time period, many different one-time investment options are available in the market.

4.1 Equity Mutual Funds (Lump Sum)

Mutual funds pool money from multiple investors and allocate it across equities, debt, or a mix of both. The equity mutual funds have high return-generating potential, but they also carry a lot of risk.
Example: Parag Parikh Flexi Cap Fund, Axis Bluechip Fund

4.2 Index Funds

An Index Fund is made to mirror the performance of a chosen market index. Their goal is to make identical returns to the chosen index. Their low cost and comparatively lower risk make them a great investment opportunity for new investors and students.
Example: Navi Nifty 50 Index Fund, HDF Equal-Weighted Index Fund

4.3 Stocks (For High-Risk Investors)

Stocks give you proportional ownership in a company based on the amount invested. They have a very high potential but come with more risk too, which makes them ideal for long-term investors.

Example: Bajaj Finance Ltd, Eicher Motors Ltd

4.4 Corporate Bonds

When a company issues capital through corporate bonds, it pays a fixed rate of interest on them. They are safer than equity, and conservative investors can use them for income generation. 

Example: Corporate bonds from Poonawalla Fincorp Ltd, L&T Finance Ltd

4.5 ULIPs

Unit Linked Insurance Plans (ULIPs) offer dual benefits of market return and capital protection. In a ULIP, a portion of your contribution goes towards a life insurance cover, and the rest of the amount is invested in financial instruments. They carry higher costs but also give tax benefits.
Example: LIC Endowment Plus, SBI Life Smart Wealth Assure

4.6 NPS (Tier-I & II)

For the purpose of building a retirement corpus, investors should also consider the National Pension Scheme (NPS). It provides tax benefits, maximising the returns.

Tier-1: Primary long-term savings offering tax benefits and having withdrawal restrictions.

Tier-2: Optional flexible account, with no lock-in period

4.7 REITs & InvITs

Infrastructure Investment Trusts (InvITS)  and Real Estate Investment Trusts (REITs) allow you to directly invest in real estate or infrastructure without the need to directly hold the physical assets. They are a good option to generate a stable income.

Example: Embassy Office Parks REIT, Embassy Office Parks REIT

5. High Return Options for 1–3 Years

For short-term goals, the investors should look at options that offer stability and low volatility. These options generate moderate returns while keeping your money easily accessible. The goal here is to protect the capital and earn predictable returns without taking high risk.
Some of the high return options, for 1-3 years:

• Corporate bonds 
• Liquid funds
• Conservative hybrid funds

6. High Return Options for 5–10 Years

For long-term, options that can generate significant returns are preferred. Long term appreciation and compounding makes these options suitable for major goals such as building a retirement corpus or buying a house.

Some of the high return options for 5-10 years are:

• Equity mutual funds
• Index funds
• Direct stocks 
• NPS 

7. Comparison Table: Risk, Return, Liquidity & Tax

The different investment options can be compared based on the following parameters:

Investment Option	Returns	Risk Level	Liquidity	Tax Impact
Equity Mutual Funds	High long-term growth	Moderate risk	Easy to redeem	10% LTCG tax
Corporate Bonds	Stable fixed returns	Low credit risk	Moderate liquidity	Taxed as per income slab
Stocks	Very high potential	High market risk	Instant liquidity	LTCG/STCG applies
Index Funds	Market-linked returns	Moderate risk	Highly liquid	10% LTCG tax
ULIPs	Moderate linked returns	Medium product risk	Low liquidity	Tax-free ( as per conditions)
NPS	Steady long-term gains	Low overall risk	Low liquidity	Partial tax exemption
REITs / INVITs	Regular income yield	Moderate risk	High market liquidity	Dividend taxable

8. How to Pick the Best One-Time Investment Based on Risk

The best investment plan matches the risk with your age, income, and investment duration. It ensures that financial goals can be met without any stress or burden.

Low Risk

Low-risk options help to protect your capital and offer predictable growth. They work well for conservative investors or short-term financial needs. Options such as corporate bonds, NPS, and ULIPs are considered low-risk investments.

Medium Risk

Index funds, hybrid funds, and REITs fall into the medium-risk category. They provide balanced growth and safety by diversifying the investments across asset classes. They work well for individuals who want stable performance with lower market risk.

High Risk

For investors looking to maximise long-term returns, high-risk options such as equity funds and direct stocks are the most suitable. They offer strong return potential but carry higher risk. These options work best with long investment horizons.

9. One-Time Investment Strategy Based on Investor Profile

The one-time investment can change based on the investment goal, time, and risk tolerance to suit different investor profiles.

9.1 Students

Students should start early, even with a small lump-sum amount. Simple options like index funds are suitable for them. Students can benefit from beginning early, even if the initial amount is small. Straightforward choices such as index funds often work well at this stage because they’re easy to understand and don’t require active management. 

Getting started sooner also encourages steady investing habits that last for years. And with time on their side, even a modest one-time investment can grow noticeably through compounding.

9.2 Salaried Employees

When salaried employees receive any appraisals or bonuses, they can use that amount to make a lump-sum investment. Combining equity funds with NPS helps generate long-term returns and secure tax savings.
Having a longer time horizon allows for steady growth of investment and supports major life goals such as education and retirement planning.

9.3 Senior Citizens

The focus of senior citizens should be on protecting their capital and generating income. They can explore options like corporate bonds, REITs, and InvITs that give stability, predictable returns, and regular income.

10. Mistakes to Avoid in One-Time (Lump Sum) Investing

The common mistakes that you should avoid to get the best possible returns out of your one-time investment plan are:

1. Not Determining Your Time Horizon

A clear time horizon helps in choosing the right asset class. Not defining your investment time horizon can result in wrong asset selection and misalign the investment with your financial objectives.

2. Asset Concentration
Putting all of your investment amount into a single asset is a very risky move. The poor performance of a single asset can harm the whole portfolio. Diversifying the investment minimises the risk and provides stability.

3. Early Withdrawal
Withdrawing too early prevents the effect of compounding from taking place and reduces the potential gains. Staying invested for a defined time duration leads to better long-term gains.

4. Ignoring Taxation
Taxes can silently eat away your gains. Some assets are liable to capital gains tax, while on others, tax is paid as per the income slab. By investing in tax-efficient options, we can keep more of our returns.

5. Chasing Quick Gains
Many investors get fascinated with making quick profits. They are very tempting, but it is important to understand that markets are unpredictable. Any sudden shits can wipe away the profits and even lead to. Balancing your investment with safer options leads to stable returns in the long run.

11. Taxation on One-Time Investment Plans

Understanding how taxes are levied on different investments is crucial for maximising the actual returns from your investment.

Equity Funds

The equity funds are generally held for more than a year, which makes them liable to Long Term Capital Gains (LTCG) tax. Currently, profits above ₹1.25 lakh are taxed at 12.5%. If the funds are sold within 12 months of holding, a Short Term Capital Gains (STCG) tax of 20% has to be paid.

Debt Funds

Interest earned from debt funds is clubbed with your total income and taxed as per your slab rate. This makes debt funds more suitable for investors in lower tax brackets.

Stocks

Similar to equity funds, long-term gains on shares above ₹1.25 lakh attract 12.5% tax. If they are redeemed within 12 months, a Short Term Capital Gains (STCG) tax of 20% has to be paid on them.

REITs and InvITs

The dividends from REITs and InvITs are fully taxable, which lowers the net payouts but still provides consistent income.

NPS

NPS is one of the most tax-friendly options, offering tax incentives  under the Income Tax Act 1961.

12. Final Model Portfolio (₹50,000 / ₹1 Lakh / ₹5 Lakh Example)

Creating a model portfolio helps you understand how to allocate a one-time investment based on the amount you have and the level of your risk appetite.

₹50,000 Portfolio

₹50,000 may look like a small amount, but its growth will depend on how it is allocated and the level of risk an investor is comfortable with.

• One possible approach is to allocate a larger share to growth-oriented options, such as index funds or index-based products that track the market and usually have lower costs. 
• A portion can then go into diversified mutual funds to spread risk, 
• While the remaining amount may be placed in dividend-paying instruments to support regular income.

This kind of mix can balance growth potential and risk, but the final allocation depends on individual goals and preferences.

₹1 Lakh Portfolio

Even though ₹1,00,000 is a larger amount, its outcome still depends on how it is spread across different types of assets and the investor’s risk profile.

• One example of an allocation is to put a larger share into growth-oriented assets, such as equity mutual funds, which aim for long-term capital appreciation while offering diversification. 
• Another portion can be invested in index funds, which track the broader market and typically have lower costs. 
• The remaining amount may be placed in relatively safer income-oriented instruments, such as selected corporate bonds, which can provide regular interest along with some stability

This kind of mix is often used by investors with medium to long-term goals who want a balance between growth and risk, but the actual allocation should align with individual objectives and comfort with volatility.

₹5 Lakh Portfolio

If an investor allocates ₹5 lakh, spreading it across different assets can help manage risk and pursue various goals.

• For example, a sizeable share could be directed towards equity mutual funds, which aim for long-term capital growth. 
• Another large portion might be placed in index funds to maintain diversification and potentially reduce volatility. 
• Part of the amount could be allotted to the NPS to support retirement planning and access to available tax benefits.
• A smaller share may go into REITs to introduce an income-generating component and broaden the overall asset mix.

This structure provides a balanced approach for investors aiming for long-term growth with controlled risk.

Conclusion

One-time investment plans can result in significant long-term returns over time. Even small amounts carry the potential of high growth through compounding. There are various investment options available offering different levels of risk, returns, and tax benefits. As an investor, our focus should be on selecting investments that fit our goals, liquidity needs, and time horizon. With careful planning and avoiding common traps, we can build a financially healthy future with our lump-sum investment.

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