Long term investment normally refers to an investment for duration of more than 15 years. Many people in India wants to invest for the purpose of having a lump sum amount at the end of a specific term to fulfill their long term goals like buying or constructing a house, children’s marriage or education or for a secured retirement.
These requirements not only need to have good return but also has to be risk free. To address these issues you need to invest in a secure long term investment option to a get good return.
Long term Investment Options
In our long term investment option list we have listed 4 best investment plans which can give you good return on your invested amount. By investing into these plans you can secure your retirement or fulfill your long terms goals like children’s education or marriage etc.
Life Insurance policies
Life insurance policy as a long term investment option will not only give you good return but also ensure your life. General Endowment life insurance policies are for 20-25 yrs and you keep on investing to get a lump sum amount at the end of maturity.
The reason of taking life insurance as a best mode of long term investment option is that it will not only give you good return but also can save your tax up to a maximum amount of 30 thousand rupees (i.e. 30% of available deduction of 100000 rupees).
Section 80C allows you to claim income tax deduction of 100000 rupees on your investment in life insurance. This deduction can be claimed on your premium amount that you paid towards your life insurance policy. Deductions can even be claimed if you pay life insurance premium of your spouse and dependent children.
With the tax deduction and rate of return life insurance is the best long term investment options among Indians.
Public provident fund
In our next long term investment option list, we have public provident fund scheme. Public provident fund is managed by central government. All post offices and authorized banks are accepting application to open a public provident fund.
At present Public provident fund carries an interest rate of 8.7% approx per year. Amount from public provident fund cannot be withdrawn before completion of 15 years with a exception where you can withdraw after 5 years. In addition to the rate of return, government also allowed income tax deduction for the contribution that you make towards your public provident fund every year. At the end of maturity also your interest amount including the principal will be tax exempted.
This is another best long term investment option where you get both tax benefits and good rate of return with high security.
Building and lands are something which each and every individual in India wants to have. By looking at the value of appreciation to land and building, we have listed real estate as our next best long term investment option in India.
We could have listed it on the top but to get started you need to have money for buying and selling. For this reason we have listed it in number three.
If you have some surplus money to invest then we suggest you to start investing in to land and building. First buy one for you future use and some more for investment purpose. Appreciation to the value of land and building is almost 5 to 10 times of the original value in a year. You can have a very good return out of it. Based on our experience we suggest you to keep yourself away from brokers.
Find out the place nearer to your locality and get all details of the property to start investing.
Stock Market and/or Mutual Funds
Stock market is the best way to get invested with little money. If you are scared about the risk then we recommend you to start investing through a mutual fund. Mutual funds are organizations where professional fund managers having knowledge of stock market will invest your money in stock market. At the year end, you will get a portion of your invested money as return. Most of the mutual funds are paying very good return compare to our traditional investment plans.