I need to make videos which tells a story without actual actors but with narration.
Here is one example.
Please let me know which free and paid software will do the job easily and effectively.
"Which Paintbrush can be used to make a great painting but without fruit?"
Software alone isn't going to help much – to make an engaging video you're going to need quite a bit of graphical, technical and artistic skill. Having said that, Adobe's After Effects is likely what created the effects you see here. It's not cookie cutter – you need to spend a lot of time with it, learning how to use it. But work at it and you'll be able to make videos that look even better than that one.
The one in your example is done probably in Adobe After Effects! ;D
Well there is also the phenomenon of Whiteboard animation, easily done with Sparkol Videoscribe. Here is one I had done for my mother by a seemingly professional artist:
There is a 7 day free trial: http://www.sparkol.com?aid=19131. Afterwards its expensive at somethign like $20 a month to use, but thge results are spectacular. Alot of Whiteboard animations you see even parts of TV show, are made with Sparkol animator.
It will probably eventually become cliché like PowerPoint, but it still isn't a stale way to present things yet. There is alot of flexibility too.
generate slideshows from images and videos and record narration over it.
Recording a narration in Movie Maker 2
Video Edit Magic