We all look for fast gratification in today’s world. Even though we know that perseverance and self-control can lead to more significant benefits, we strive to complete all our tasks quickly. In the shortest time, we always want to generate the highest return. We constantly search for the appropriate investment strategies that would allow us to double or triple our money.
So, why haven’t you considered making long-term investments? Do not rush anything! Let’s start by defining long-term investments.
Options for long-term investments benefit from good returns and minimal risks. Stocks, high-return mutual funds, excellent real estate, and high-quality bonds are powerful long-term investment options. For this, you must save aside a large sum of money or consistently invest slight amounts over a lengthy period. Typically, these investments only yield a return after 5 or 10 years.
Different long-term Investment options available in India
The following long-term investment strategies can help you start planning your long-term investments and can eventually help you increase your wealth:
Public Provident Fund [PPP]-
PPF, or Public Provident Fund, is one of the conventional long-term investment plans. Most of your family’s elders would have made PPF investments. In India, it gets known to be the safest and most cost-efficient investing strategies in India. On maturity, you receive fixed returns with no risk.
Given that a PPF Account has a 15-year lock-in term, you may continue to invest during this time. After 15 years, you can withdraw your funds. You can draw out a portion of your funds after the fifth year, according to your limitations and conditions.
Additionally, under Section 80C of the Income Tax Act of 1961, you get permission to deduct up to Rs. 1.5 lakh of your PPF contributions from your taxable income each financial year.
Mutual Funds-
Mutual funds are one of the powerful possibilities for creating long-term wealth. The investments are secure because SEBI regulates all mutual funds. And you can consecutively keep a check on your mutual funds by using a few best trading app in India.
Mutual funds primarily fall into the following three categories: equity, debt funds, and hybrid funds. Debt funds put your money to work by buying government and corporate bonds. If you choose low-risk and are content with moderate returns, you might want to invest in debt funds.
On the other hand, equity mutual funds invest your money in stocks and provide capital growth. The risk involved is substantial, and the returns generated depend on the stock market. According to the current trend, it’s been a wise long-term investment choice for five years. This a great investment strategy if you enjoy taking on significant risks. You can invest in ELSS funds with only a 3-year minimum lock-in period that provides tax savings.
The least risky investments are hybrid funds, which are the ideal combination of fixed-income securities and equity funds. Hybrid mutual funds are an excellent place to start if you’re new to investing.
Fixed Deposits-
Bank Fixed Deposits are yet another conventional investing strategy. Choose tax-saving bank fixed deposits to reduce your annual investment costs by up to Rs. 1.5 lakh. You can choose a lock-in period of any length, after which you can withdraw your funds. Because there is no risk, the money invested is secure. Even senior folks can invest in bank FDs because the returns are more extensive for those over 60 than those under 60.
ULIPs-
Unit Linked Investment Plans is the official name of ULIPs. Due to its ability to provide both life insurance coverage and wealth growth, ULIPs are a fantastic investment strategy. You also receive tax advantages under Section 80C. Since ULIP plans have a minimum five-year lock-in period, it is perfect if you want to keep your investment for a longer length of time. The overall risk is substantial compared to an equity-linked saving strategy, nevertheless.
National Pension Scheme [NPS]-
An initiative of the Indian government called NPS aims to assist investors in buying various market-linked securities like debt and stocks. Long-term savings are possible, and section 80C offers tax advantages. The National Pension Scheme (NPS) is open to investors between the age18 and 60. The returns earned by the National Pension Scheme are higher, and it is a safer investment alternative than other equity-related instruments.
For all these investments, it’s crucial to get guidance from financial experts before you begin investing so they can assist you in tracking your financial portfolio. You can work with some of the best stock advisors in India to develop investments and earn returns that will help you achieve your stated objectives.