By showing interest to read this article, you have proved that you want to know best investment options in India.
Pat on your back if you are seriously thinking to invest your money.
Investment in the right instrument at the right time will surely help you to achieve financial independence. You can invest your money for long term or short term duration. The time horizon of investment depends on upon your investment objective.
If you are investing money for the child education or marriage it will be long term investment. However, if you are investing money for next year vacation it will be short term investment.
In this article, I will share 10 Best Investment Options for the long term. This investment options will surely help you in growing your money.
10 Best Investment Options for Long term
PPF or Public provident fund is one of the best investment options for the long term. The interest earned through PPF is tax-free.
PPF account can be opened in any authorized bank or post office. The maturity period of PPF account is 15 years, which can be extended in 5 years block. The current interest rate applicable on PPF account is 8%. Investment in PPF is tax-free, however, if you are looking for liquidity PPF is not an advisable investment option.
- Sukanya Samriddhi Account
Sukanya samriddhi account is a special saving scheme for the girl child. This scheme was launched 2 years back. Under this scheme, you can open Sukanya Samriddhi Account on the name of the girl child and deposit money in this account.
Sukanya Samriddhi scheme offers an interest rate of 8.5% compounded on yearly basis. The interest earned on SSA account is tax-free. Once you open the account you need to deposit money up to 14 years. The maturity period of sukanya samriddhi account is 21 years from the date of opening the account. Sukanya Samriddhi account comes with lock-in period.
NPS(New pension scheme) is next in the list of best investment options. New Pension Scheme is retirement saving pension scheme launched by the government of India. This scheme is also known as a national pension scheme. This scheme is regulated and administered by PFRDA.
NPS offers Tire 1 and Tire 2 account. NPS also provide options to select between debt and equity investment. You can even select asset allocations under NPS account. NPS gives multiple tax benefits to the investor.
- Mutual Funds
A mutual fund is an evergreen and one of the best investment options for the long term. Mutual fund investments are preferred by the investor with moderate risk or high-risk profile. Mutual funds are managed by a fund manager with proficiency and experience.
Mutual fund investments are likely to generate better return compare to any other investment option. You can invest in a mutual fund for long term via SIP route. Make sure to carry out a deep dive analysis before selecting a mutual fund for the investment.
If you have knowledge of analyzing a right stock for the investment, stock market investment is for you. Stock market investment is risky affair but investment in good blue chip stocks for longer duration always gives a better return.
There are 2 ways in which you can invest in equities:
- Through primary market (applying for shares that are offered to the public)
- Through secondary market (buying shares that are listed on the stock exchanges)
The stock market investment gives you a benefit of capital appreciation as well as a dividend on a regular interval. If you are new to the stock market it is advisable to go through SIP investment via mutual funds route.
- Business or Startup
Next best long term investment option is a business or startup. Startup companies are like rising sun with huge upside potential and increase in valuation. No one was aware of Flipkart a few years back and today it is leading e-commerce company of India.
So, that is the power of startup. If you are ready to take a risk in life you should go for investing in a good startup company for the long term.
- Real estate
If you have a lot of surplus money for the investment real estate is for you. Real estate is one of the most popular investment options in India. It is observed that long term investment in real estate pays a better return. However, there are few drawbacks of real estate sector. Real estate investment demands legal expertise and lot of black money.
In addition to that location, facilities and age of property play important role in deciding the price of real estate. Don’t be in hurry to make an investment in real estate. If required take help from experts.
- Gold ETF
Investment in gold is always considered as a safer bet against inflation. Historically yellow shining metal gold has given very good performance. Gold is likely to give better performance in future. There are multiple ways to invest in gold you can invest in physical gold, bond or in gold ETF.
Gold ETF is one of the most recommended ways to invest in gold as it gives multiple benefits like (1) No requirement of physical storage (2) Easy to buy and sell (3) No making charges etc.
As a thumb rule, it is not advisable to hold more than 10 % gold in your portfolio.
- Company Fixed deposit
The next investment option for the long term is company fixed deposit. The company fixed deposit offers higher return compared to normal fixed deposit. However, company fixed deposit comes with lock-in period. So, you need to select the investment period carefully.
Investment in company fixed deposit is slightly risky compared to normal fixed deposit. Kindly evaluate the company on various parameters before investing your money.
- Post MIS
If you are looking for safe investment option for the long duration post office MIS is low-risk low return scheme. Post office MIS offers 7.7% return. Investment period of post office MIS is 6 years.
If you are a highly conservative investor and looking for fixed income every month you can go for post office MIS.
Over to You –
Hope list of best investment options given above will help you in taking a right investment decision.
Lastly, I would like to advise you that select your investment option carefully. Make sure investment option selected by you is in line with your investment objective, your risk profile, and age. If you are reaching retirement age it is better to select conservative investment option like fixed deposit or MIS and if you are young you should opt for stock and mutual funds.
Where are you investing your money?
Do share your views in the comment section.