Many of us want our money to grow; however, we do not get enough guidance to choose the right method to do that. While investing in the share market is one of the most lucrative ways for us to see our money multiply, it has a lot of market risk which makes it a dicey endeavor. If you too are on the same wagon where you are looking for a good investment option, you can choose from the log-term investment plans which provide options with lower risk and where you can still get a great return over your investment. In this writing, we have included some of the long-term investment plans that you can choose based on your financial needs and goals.
Public Provident Fund (PPF)
This is almost the same as Employee Provident Fund (EPF), which is provided to salaried individuals. However, what makes it different is that anyone can go ahead and opt for a PPF. The investments on PPF are done for up to 15 years, and the rate of return at present is 7.1%. The rate of interest is fixed by the government each year. One of the most important advantages of investing in the PPF scheme is you can claim your tax deduction under section 80C.
Bank Fixed Deposit (FD)
Bank Fixed Deposit (FD) is one of the oldest forms of investment in the country. People have been investing their money on FD when there were not too many options. The FDs that are offered by banks are considered to be the safest. You will be able to invest the money for a longer period of up to 10 years. The rate of return remains the same and ranges somewhere between 3% to 6.5% per annum. Once the term is over, you will be able to withdraw the money. The interest rates of FD are higher than RD and savings accounts. If you opt for an early withdrawal, you might have to pay a penalty.
National Savings Certificates (NSC)
National Savings Certificates is another long-term investment plan in India that you can opt for. You can find it in the post office and some public sector banks. The tenure of this plan is five years and you can start investing in NSC with money as low as INR 100. The interest rate of NSC at present is 6.8% per annum, which is almost like PPF and the rates are fixed by the Indian government every year.
Sukanya Samriddhi Yojana (SSY)
This investment scheme has been started by the government of India for the benefit of the girl child. You can open an account under this yojana for your girl child under the age of 10 years. The minimum amount you have to deposit under this yojana is INR 250 per annum. You have to deposit money every year for 15 years and on completion of 21 years, the maturity benefit can be availed. The current rate of interest is 7.5%. As you take this, you can claim a tax deduction under section 80C.
Stocks and Mutual Funds
If you are looking for a very good return, you can go for stocks. The long-term investment stocks or the SIP route in mutual funds are the best ways to invest money in today’s world and get the best return. In the usual situation, you will get around 12 to 16% returns, and if the economy is booming, the returns could be as good as 20 to 30%. The best mutual funds for long-term investment are mid-cap and large-cap core funds, which have a track record of the best returns.
Term Life Insurance
Term insurance is yet another investment plan that you can go for. Although it is not like the other investment plans and you will not get maturity benefit, but on your unexpected demise within the tenure of the plan, the beneficiary of the policy will get a good sum assured. Some term life insurance policies also offer the premiums back if you survive the term. However, there is no maturity amount that you can avail of from term life insurance.
To know more about long-term investment plans, you can visit IIFL’s website. You will not only get to learn about long-term investment plans but also will be able to compare the various term insurance plans.