Long term investment options in India

Are you interested to invest your money long term investment? Many investment options are available in Indian market according to the reason behind your investment. Here are few options of long term investment in India. You can select the one suitable for you and investment for better future life.

It is necessary to invest money for our future and the future of our dear ones. If you are planning to invest money for just couple of years then it will be a Short term investment and investment more than five six years or ten years, will be considered as long term investment.

Investment in mutual funds

This the generally preferred investment option for long term investment. If you are ready to face the equal amount of risk along with the benefits then you can think about investing money in equities and bonds. Mutual funds investment directly deals with the stock market and thus many people show interest in this option of investment. If you have a perfect of Systematic Investment Plan (SIP) then you can hope about getting better profit from this investment. A systematic plan can make you risk-free about insecurity of the stock market.

Investment in Public Provident Fund

It is considered as one of the most secured long term investment options, especially in India. This option is free for any kind of taxes. Investing money in PPF is very easy and safe. You can open PPF account in any post office or bank. The period of the investment is for 15 years and you can earn a very descent amount of interest on your investment. You can also think about extending the time limit for next five years. The one and only problem in this investment option is you cannot withdraw the invested amount as per your wish. You can withdraw some part of the amount only after the completion of six years.

Real Estate option

Real estate business is most in demand business in India. You get many options to select from for your future investment. You can invest your money in house, commercial plot, manufacturing business, hotel industry or retail business. You need to be very alert while investing your money in this option. It is called as 'Money Making Industry' as the profit level can exceed up to 50 to 100%. You can think about purchasing some assets or properties that can give you desired profit after the span of 5 to 10 years.

Safe gold investment plans

Investing in gold is always profitable as it carries a very high level of liquidity. Many schemes are available for gold investment like Gold mutual fund, Gold deposit scheme, Gold ETF and many more. The investment in gold for a longer period can give you opportunity to earn huge profit. Gold bonds are free from taxes and the profit gain is as per the desire of the investor only. You can demand for the cash or gold after the completion of investment period.

Post office deposit

Investing money in post office is most popular option among middle class people as it is safe and easy. The post office offers the monthly income plan for retired people too. As the post office investment options are supported by government and thus carry very less risk. Some famous schemes for post office investment are National Savings Certificates, Kisan Vikas Patra, National saving scheme, Recurring Deposit scheme and money income scheme. Investing money in National saving certificate is most preferred option by the common people.

Investment in bonds

Many people are not ready to invest money in mutual funds; in that case one more option of investment is available in India that is investing in bonds. If you invest your amount in proper bonds then you can earn a very good profit amount after a specific time. The government bonds offer you a very good percentage of interest on the investment of 10 years.

Before selecting any option for future investment, make sure that the option you select has a good past record and the management fees for the scheme is not higher. Don't invest a higher amount in a single investment option; doing this can keep you safe from risk of loss or insecurity.

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Author: Kailash Kumar23 Feb 2016 Member Level: Platinum   Points : 3

The selection of the investment plan depends on the income tax bracket of the individual also. The requirement of an investor who pays income tax @ 10% per annum is different than those who pay @ 30%. The net interest earned on the bank term deposits will be much lower after deduction of income tax @ 30%. Though the banks deduct the TDS @ 10% only, but it is responsibility of the individual to declare his/her total income from all sources in ITR and pay income tax at applicable rate i.e. @ 30%. Investing in Tax Free Bonds for individuals in higher income tax bracket is therefore advisable compared to investing in bank term deposits.

Author: Partha K.26 Feb 2016 Member Level: Diamond   Points : 3

This is an informative article. However, I would like to state two aspects which have not been covered in this article. These are:-

(a) Corporate bonds: This is another viable long-term investment option which give better returns than fixed-market instruments. Bonds/NCDs of good companies are preferred by many investors.
(b) Tax treatment: Every investor must consider the tax treatment of a particular investment instrument before taking final decision. The net return must be calculated after subtracting the tax.

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