The best long-term investment options

 

Long-term investing is all about making the right investments and waiting patiently until you are ready to recover them to reach your financial goals.

 

 Good long-term investment options for 2020

Long-term investments offer several benefits. Compound interest, like fixed deposits in a bank, is more tax-efficient, like some mutual fund investments. Long-term investments are held for 3 years or more, but this type of investment needs commitment, even if you encounter moderate financial crises.

 

Long-term investments provide high returns when they mature. This type of investment is well suited for your child as you can financially plan for his or her future - education, marriage and lifestyle. There are various long term investment options available and you should choose one carefully based on your financial goals and risk factors associated with investment plans in India.

 

It's called "long-term" for a reason, you invest and forget the money to ripen. Track your savings from time to time so that you have an idea of ​​your investments. Here are some long-term investment options for you:

 

PPF and EPF

 

The Public Provident Fund is one of the most popular investment options in the country, with an interest rate of 8.7% and still the best option. You enjoy tax benefits under Section 80C, and the interest income is exempt from income tax (tax exempt).

 

FPP is especially suitable for people with a low risk appetite and who are looking to save money in the long term for retirement planning or any other long-term financial goal. Investors with a greater risk appetite can also invest in it to balance their investment portfolio.

 

Contributions to PPF as well as EPF (Employee Provident Fund) are eligible for tax benefits. A maximum investment of Rs 1.5 is permitted for the purpose of claiming benefits under Section 80c. An individual can invest more than that, but cannot claim tax benefits

 

The FPP rate is linked to the market and adjusted every year. FPP matures at 15 years. You may withdraw after six years, but you cannot exceed 50% of the balance at the end of the fourth year or the immediate preceding year, whichever is less.

 

Stores

 

Investing in stocks is another option, but there is no guarantee that you will make a profit. You can choose as part of the portfolio and the allocation ratio should be based on your ability to take risk.

 

investment funds

 

These are for people who want to invest in bonds and stocks to balance risk and return. There are several types of money that you can invest in depending on your ability to risk. Or, you can also go for a Systematic Investing Plan (SIP) that reduces market risk by creating a long-term portfolio with small investments at regular intervals.

 

Real estate

 

The real estate sector is a thriving industry in our nation. It has great prospects in all sectors such as hospitality, commercial, retail, housing, manufacturing, etc. People who got huge cash benefits from previous investments can invest in real estate.

 

capturing

 

If you find investing in stocks risky, bonds offer a safer option. A 10-year government bond gives an interest rate of 7.70 percent. You can also choose bonds linked to inflation, and here interest rates depend on inflation.

 

Go

 

An all-time favorite investment product, you can invest in gold in any form: gold bars, gold ETFs, mutual funds, gold deposit system, etc. The bond will carry a duty-free interest rate of 4% with a lock-in period ranging from 3 to 7 years.

 

ULIP

 

Unit-linked insurance plans, also known as ULIPs, invest in the debt and equity markets. You can monitor ups and downs using Net Asset Value (NAV). Although most ULIPs are not recommended due to the various fees, they can give you a decent 8% return on long-term investments.

 

Unit Linked Insurance Plans, or ULIP, invest in the asset markets: equity and debt. For this reason, your portfolio faces fluctuations, which are recorded through the Net Asset Value (NAV), and are usually published at regular intervals. All ULIP purchases and refunds are at the net asset value plus fees, if any.

 

Given the volatility inherent in ULIPs of equity exposure, they are ideal for investors considering higher risk investments.

 

ULIPs typically offer a wide range of options in variable income markets. E and debt. The variety of options means you have a better option to find the best plan / option for your risk profile and investment objective.

 

ULIPs offer tax benefits under Section 80C. The maximum discount that can be claimed is Rs 1.5 lakhs. Refund returns are tax exempt under Section 10 (d), thus ULIPs also play the role of exemplary tax-free investment options in India.

 

ULIPs can be helpful in achieving a variety of financial goals such as retirement planning, child education / marriage, home prepayment, and more; This makes it an ideal choice to go to when choosing a long-term investment option.

 

Equity funds

 

Mutual funds that invest in the stock markets are a must for long-term investors. These long-term investment plans vary across stocks and sectors to ensure that they take full advantage of emerging trends in the equity markets.

 

Choose well-managed, well-diversified equity funds with a long-term track record in market cycles. Entering the fund with a horizon of at least five years to give the investment an opportunity to record long-term profits.

 

If you are looking for advantages Tax, so choose tax savings mutual funds, also called ELSS or equity-linked savings scheme. These mutual funds operate like common stock funds, except that they have a three-year close. They offer tax benefits with a maximum investment of Rs 1.5 lakhs. Refunds are exempt from tax under Article 10 (d).