What Is a One Time Investment Plan?

If you’ve come into a lump sum of money, whether it’s a bonus, inheritance, or proceeds from a property sale, the question that often follows is: what should I do with it? That’s where a one time investment plan can make all the difference.

Instead of letting your money sit idle in a savings account, a one-time investment allows you to grow your wealth smartly and systematically. Whether your goals are long-term or short-term, there are tailored investment plans designed for a single lump sum investment that offer both stability and returns.

In this guide, we’ll explain what a one time investment plan is, how it works, and what options you can consider to make your money work harder for you.

What Is a One Time Investment Plan?

A one time investment plan is an investment option where you invest a lump sum amount in one go, rather than making monthly or recurring contributions. These plans are ideal when you have surplus funds and want to invest without the hassle of frequent payments.

They are suitable for:

• Individuals who have received a lump sum (bonus, inheritance, business proceeds)
• Investors looking for long-term wealth creation
• Those who prefer set-it-and-forget-it investments

One-time investments can be made in a variety of instruments, from market-linked options like mutual funds and ULIPs to guaranteed-return plans and traditional savings schemes.

How Does a One Time Investment Plan Work?

Here’s a simplified process:

1. You invest a lump sum amount into the chosen investment plan
2. The money either grows based on market performance or earns fixed returns (depending on the product)
3. At maturity or a specific milestone, you receive the accumulated value as a lump sum or as regular income

This makes it ideal for goal-based investing, such as retirement planning, a child’s education, or even a down payment on a home.

Top One Time Investment Plans in India

1. Lump Sum Mutual Fund Investments

• Returns: 10%–15% (market-linked, long term)
• Risk: Moderate to high
• Liquidity: High
• Tenure: Flexible (minimum 3–5 years for equity funds)
• Taxation: Capital gains tax as per duration and type of fund

Why choose it: Best suited for investors with a long horizon and a willingness to ride out market ups and downs. You can use a Systematic Withdrawal Plan (SWP) later to create regular income.

2. One-Time ULIP Plans (Unit Linked Insurance Plans)

• Returns: Depends on fund performance (6%–12%)
• Risk: Market-linked, with adjustable equity/debt allocation
• Lock-in: 5 years
• Tax Benefits: Section 80C; tax-free maturity under Section 10(10D)*

Why choose it: Offers life cover + investment, ideal for long-term goals like retirement or education planning. Suitable for those looking for financial protection and disciplined wealth creation.

3. Guaranteed Return Plans

• Returns: Fixed (typically 4%–6%)
• Risk: Very low
• Lock-in: 5–20 years depending on the plan
• Tax Benefits: Section 80C + tax-free maturity if conditions are met

Why choose it: Perfect for conservative investors who want assured maturity benefits without exposure to market volatility.

4. Public Provident Fund (PPF)

• Returns: ~7% (government-backed, tax-free)
• Tenure: 15 years (extendable)
• Risk: Zero
• Tax Benefits: Exempt-Exempt-Exempt (EEE)

Why choose it: Suitable for long-term wealth accumulation with tax efficiency. You can invest up to ₹1.5 lakh annually, either via lump sum or in installments.

5. National Savings Certificates (NSC)

• Returns: ~7.7% (as of 2025)
• Tenure: 5 years
• Risk: Very low
• Tax Benefits: Section 80C; interest taxable

Why choose it: A good short- to medium-term option for those looking for capital safety and guaranteed growth.

6. Fixed Deposits (FDs)

• Returns: 6%–7.5% (varies by bank and tenure)
• Tenure: 7 days to 10 years
• Risk: Very low
• Taxation: Interest taxable; TDS applicable above threshold

Why choose it: Ideal for those who value capital preservation and predictable returns. Senior citizens often get additional interest rates.

Benefits of One Time Investment Plans

• Convenience: No monthly commitment, one decision, and you’re set
• Compounding: A larger initial amount enjoys more power of compounding over time
• Goal-based planning: Easy to align with major life goals
• Diverse choices: From high-risk-high-reward options to guaranteed-return schemes
• Tax advantages: Many options come with benefits under Section 80C and Section 10(10D)

Things to Consider Before Choosing a One Time Investment Plan

• Risk appetite: Can you handle market fluctuations or do you prefer safety?
• Time horizon: How long can you leave the money untouched?
• Liquidity needs: Will you need access to the funds before maturity?
• Tax treatment: Check how returns are taxed (or exempted)
• Life goals: Match your plan to the purpose, retirement, education, housing, etc.

Final Thoughts

A one time investment plan is a smart and effective way to put your idle lump sum to work. Whether you’re a salaried professional, a business owner, or a retiree, there’s a plan that can match your financial goals, risk profile, and investment horizon.

From mutual funds for high-growth potential to ULIPs for protection with returns, or PPF and FDs for guaranteed stability, the right plan helps you grow your wealth, one smart decision at a time.