Investing regularly is one of the most effective ways to build wealth while also saving on taxes. The best monthly investment plans offer a disciplined approach to growing your money while taking advantage of tax benefits under various sections of the Income Tax Act. Whether you’re a salaried professional, a business owner, or a freelancer, systematic investments can help you achieve long term financial goals while reducing your taxable income.

In this blog, we’ll explore the top monthly investment options that provide both features of tax savings and wealth creation. From Equity-Linked Savings Schemes (ELSS) to Public Provident Fund (PPF) and National Pension System (NPS), we’ll break down the best strategies to maximize returns while minimizing tax liabilities.

Why Choose the Best Monthly Investment Plans?

Want to grow your wealth without the stress? The best monthly investment plans let you start small, stay consistent, and watch your money grow over time. Instead of scrambling for lump-sum investments, you can automate contributions—making wealth creation effortless. Plus, many of these plans come with tax benefits, so you save while you invest.

The real magic? Discipline and compounding. By investing regularly, you build a habit that pays off in the long run. Whether it’s equity funds, SIPs, or PPF, the right plan balances out risk and returns. You don’t need guesswork or market timing—just steady progress toward your financial goals. Start today, and let your money work harder for you.

Top 5 Best Monthly Investment Plans for Tax Savings & Wealth Creation

Looking for the best ways to invest monthly and save on taxes? Here are 5 proven monthly investment plans that balance growth, security, and tax efficiency.

A. Public Provident Fund

If you want a safe and rewarding long-term investment, the Public Provident Fund (PPF) is an excellent choice. Backed by the Indian government, this scheme offers guaranteed returns along with multiple tax benefits. You can start with as little as ₹500 per month, making it accessible for investors at any income level. The interest earned is completely tax-free, and your investments qualify for deductions under Section 80C up to ₹1.5 lakh annually.

Opening a PPF account is simple – just visit your nearest bank branch or post office with basic KYC documents like PAN card and address proof. Once your account is active, consider setting up an auto-debit facility from your savings account. This ensures consistent monthly investments without any manual intervention. While PPF comes with a 15-year lock-in period, this actually works in your favor by allowing your money to grow through the power of compounding. 

The complete capital protection and inflation-beating returns make PPF particularly suitable for important long-term objectives like building a retirement corpus or creating an education fund for your children. Many smart investors use PPF as the foundation of their wealth creation strategy due to its unbeatable combination of safety, tax efficiency, and decent returns.

B. National Pension System

The National Pension System (NPS) is a smart retirement-focused investment that combines market-linked growth with tax benefits. Unlike traditional pension plans, NPS gives you control to choose between equity, corporate bonds, and government securities. It offers two account types – Tier I (with tax benefits but withdrawal restrictions) and Tier II (more flexible but without tax perks). Your money grows tax-free, and you get an additional ₹50,000 deduction under Section 80CCD(1B) beyond the ₹1.5 lakh limit of 80C.

The NPS stands out as retirement investment options for several compelling reasons. It offers the potential of higher returns through partial equity exposure while maintaining some of the lowest fund management charges in the financial industry. A unique auto-pilot feature gradually shifts your investments to safer debt instruments as you approach retirement age, protecting your accumulated corpus. At maturity, you can withdraw 60% of your savings completely tax-free, with the remaining 40% used to purchase an annuity that provides regular pension income. This combination of growth potential, cost efficiency, automatic risk management, and tax benefits makes NPS particularly attractive for long-term retirement planning.

Listed below are the steps you can follow to start using NPS:

• Visit the official NPS website or any authorized bank  
• Complete KYC with PAN and Aadhaar  
• Choose your fund manager and asset allocation  
• Set up SIP through auto-debit for disciplined investing

NPS works best for those who want a structured retirement plan without sacrificing growth potential. The longer you stay invested, the bigger your retirement corpus grows.

C. Systematic Investment Plans (SIPs) in Mutual Funds

SIPs offer one of the simplest ways to enter the world of equity investing while minimizing risk. It is one of the best monthly investment plans for tax savings and wealth creation. By investing fixed amounts regularly (monthly/quarterly), you benefit from rupee cost averaging – automatically buying more units when prices are low and fewer when prices are high. Most mutual funds allow you to start SIPs with as little as ₹500 per month, making them accessible to new investors. The power of compounding works remarkably well in SIPs, especially when maintained for 7-10 years or longer.

These plans provide excellent flexibility – you can choose between equity, debt or hybrid funds based on your risk appetite. Equity SIPs have historically delivered 12-15% annual returns over long periods, outperforming most traditional investment options. They also offer tax efficiency – long-term capital gains up to ₹1.25 lakh are tax-free, with only 12.5% tax beyond that amount.

Starting a SIP takes just minutes online through fund house websites or investment platforms like Groww, Zerodha, or MF Wealth. Simply complete your KYC, select a suitable fund based on your goals, and set up auto-debit instructions from your bank. Many investors use SIPs for crucial goals like children’s education, home down payments, or retirement corpus building. The key is to stay invested through market cycles without panicking during downturns.

If you already own a mutual fund portfolio but find its returns not up to your expectations. Wealth Redefine can help you with free portfolio evaluation. We are just a call away readily available at your service.

D. Unit Linked Insurance Plans

ULIPs combine the dual benefits of insurance and wealth creation, making them one of the best monthly investment plans for long-term goals. These plans allow you to allocate your premiums across equity, debt, or balanced funds while providing life cover. The unique advantage is that you can switch between fund options as your financial needs evolve, giving you control over your investment strategy.

As a best monthly investment plan, ULIPs offer tax benefits under Section 80C for premiums and tax-free maturity proceeds under Section 10(10D). The mandatory 5-year lock-in period encourages disciplined investing while allowing your money to grow through market-linked returns. Modern ULIPs now have lower charges and greater transparency compared to earlier versions.

Starting is simple: choose a trusted insurer, select your protection amount and premium payment term (usually 10-15 years), and decide your equity-debt allocation. Opt for monthly premium payments to build wealth systematically. ULIPs work particularly well for investors seeking market-linked growth with built-in insurance protection.

E. Senior Citizen Savings Scheme (SCSS)

Designed specifically for retirees, SCSS stands out as one of the best monthly investment plans offering guaranteed returns with quarterly interest payouts. This government-backed scheme provides an attractive interest rate (currently 8.2% p.a.) that’s revised every quarter, helping seniors combat inflation. With a maximum investment limit of ₹30 lakh (including joint accounts), it offers both security and regular income – a rare combination in today’s market.

What makes SCSS the best monthly investment plan for retirees? The double tax benefit – deductions under Section 80C for investments and TDS exemption on interest income up to ₹50,000 annually. The 5-year tenure (extendable by 3 more years) aligns perfectly with most retirees’ financial planning horizons. Unlike market-linked options, your principal remains completely protected.

Senior citizens can easily open an SCSS account at any bank or post office using their retirement funds. Simply submit proof of age, PAN, and deposit amount (minimum ₹1,000). The quarterly interest credits serve as a reliable pension supplement, while the maturity amount can be reinvested or used for medical needs. For risk-averse investors above 60, SCSS delivers peace of mind with predictable returns.

Conclusion

Building wealth while saving taxes is simpler than you think. By choosing the right monthly investment plan, you create a safety net for your future while reducing tax burdens today. Whether it’s PPF’s guaranteed returns, NPS’s retirement focus, or SIP’s market-linked growth, each monthly investment plan offers unique advantages.  

Remember, consistency matters more than the amount you invest. Start small, stay disciplined, and let compounding work its magic. Your future self will thank you for taking this first step toward financial freedom. The best time to begin was yesterday—the next best time is now. Pick a plan that aligns with your goals, and watch your money grow steadily over time!