The year 2020 was not good for the economy worldwide as a result many people were not able to maintain their investment portfolios. However, it was interesting to see gold reaching a remarkable surge in its pricing. On the other hand interest rates on fixed deposits fell. And the most volatile among all was the equity market. From levels of over 40,000 points, Sensex fell in a matter of weeks to below 25,000 points and the latter bounced back and reached new peaks. Though 2020 was full of ups and downs for the investment market, it has come to an end now and with it, our investment plans for 2021 should begin. 

Here are the top investment portfolios for 2021 which can help you gain maximum returns. 

Direct equity

It’s true that investing in stocks is risky and might not be everyone’s cup of tea. It is a volatile asset class and there is no guarantee for fixed returns. However, if done with proper research there are higher chances that you will pick the right stock which can give you good returns in near future. The most important thing which makes direct equity investment one of the best options is – over longer period equity delivers returns that are higher than inflation as compared to all other asset classes.

To be on the safer side and minimize the risk one should opt for the stop-loss method.

  • A stop-loss method is designed to limit an investor’s loss on a security position that may make an unfavourable move.
  • The major advantage of opting for a stop-loss order is that you don’t have to monitor your holdings on a daily basis.

Investment in Gold

Many people believe that investment in gold doesn’t give any returns. But it was proved wrong in 2020 as gold prices have risen 26.73 per cent this year. So, it will be a good idea to include gold in your investment portfolio. Low returns are expected to continue over fixed deposits and other portfolios that yield fixed returns. And if bond and share yields remain subdued for some more time, it is estimated that gold will continue to do well in 2021 as well.

But, the appreciation and returns are neither fixed nor guaranteed so one should consider investing in gold for diversification of his/her investment portfolio. Experts advise allocating up to 10 per cent of your portfolio to gold exchange-traded funds. Remember buying it on higher pricing can result in loss, so wait for the good time to come and Buy gold when prices fall.


A Unit Linked Insurance Plan (ULIP) is one of the best investment options available for Indian investors. A ULIP comes with major benefits which include a dual benefit of insurance coverage along with returns like an investment plan. But it is important to know here that all ULIPs have a lock-in period of five years. So, withdrawing your invested money is not possible for a minimum of 5 years. The main advantage which makes ULIPs the most favourable investment option for a majority of people is the substantial tax savings under Section 80C of the Income Tax Act. 

ULIPs invest in both equity as well as debt, so one has the flexibility to choose from as per their requirement and risk tolerance. 

Investment in Public Provident Fund 

PPF is a long term investment and is for a tenure period of 15 years. It is one of the best investment portfolios for those who don’t want to take a risk or for those who have already invested in a volatile market and are looking for some guaranteed returns. PPF has an impact of compounding is huge and thus offers good returns. As of 2019, the interest earned on PPF accounts was 8% which has been reduced to 7% in 2020. 

PPF is one of the safest investment options with good returns along with tax savings and hence it is considered best for retirement planning. 

A PPF account can be started with a minimum amount of ₹500 and requires a minimum of ₹500 only annually to keep the account active in a financial year. However one is free to invest up to 1.5 lakh annually in a PPF account. 

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Pradhan Mantri Vaya Vandana Yojana is a Pension Scheme started by the Government of India exclusively for senior citizens aged 60 years and above. The Scheme provides an assured rate of return of 7.40 % per annum. The scheme is best to plan a pension as it pays monthly, quarterly, half-yearly, or yearly as opted. The minimum pension amount is ₹ 1,000 per month and a maximum ₹ 9,250 per month. However, the maximum amount that can be invested in PMVVY is ₹ 15 lakh. The tenure of the scheme is 10 years and the scheme is available till March 31, 2023. Those who want to invest in this scheme have both options to register offline and online. For offline, one needs to visit the nearby LIC office and for online registration, one can do via the LIC website

Where Should you Invest your Money in 2021
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Where Should you Invest your Money in 2021
Here in this Finance Buddha blog, we have mentioned the top Investment portfolios for 2021 which can help you gain maximum returns.
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Finance Buddha
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