Have You Invested In These Investment Schemes That Give Great Returns In The Long Run?

If you want to achieve your financial goals, you need to be a dedicated and disciplined investor.

Wherever an investment is made for at least three years, it should be considered as a long-term investment. But if you are planning for retirement, then the long term for you should be 20-30 years. One needs to be dedicated and disciplined about investing for better returns from investment. Here’s an overview of the best long-term investment options you can choose based on your risk appetite.

1. PPF

One of the best long-term investment schemes in India is  Public Provident Fund  (PPF), which currently offers an interest rate of 7.1% per annum. You can invest in this scheme to save tax, as you can avail tax benefits on investments up to Rs 1.5 lakh a year in this (and EPF – Employees’ Provident Fund). Both are safe investments. Although it has a maturity period of 15 years, partial withdrawals are allowed even before the maturity period with conditions.

2. Ulips 

Unit-linked insurance plans and  ULIPs  are also long-term investment options that you should consider. Part of the premium you pay for this is invested in insurance coverage and the rest is invested in market-linked financial instruments such as stocks and bonds. ULIPs offer the benefits of both insurance and investment. Also, some types of plans also help in saving tax. Deemed wealth creators, ULIPs are ideal for investors with low risk tolerance and/or planning for retirement, children’s education and medical contingencies. Investors can also avail a tax deduction of up to Rs 1.5 lakh annually on the policy premium amount paid. 

3. Mutual Funds 

You can also consider investing in mutual funds. These funds pool money from a group of people and invest in financial securities and money market investment instruments for higher returns over the long term. The Equity Linked Savings Scheme (ELSS) also offers the benefit of tax deduction on the amount invested up to 1.5 lakh per annum. Mutual funds are divided on the basis of where to invest the amount collected. The detailed information is given below:

  • Equity Funds: Funds  with high risk high returns, whereby money is invested in equities/shares
  • Debt/Stable Income Funds:  This is considered a ‘safe investment’ with a stable income. The amount is invested in debt-based investment instruments like debentures, government bonds.
  • Money Market Funds:  It is considered safe for quick and modest returns on investment of additional money. It is invested in liquid investment instruments like Treasury bills and commercial papers. 
  • Hybrid/Balanced Funds:  These are invested in mixed asset classes, so that the risk and returns are balanced

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