Finance

How to Invest your Salary Wisely for Long Term Investment Plans

Long-term investments, when well planned, are thought to outperform short-term investments. So, if you’re saving for your children’s school or marriage, or if you want to purchase a retirement home or plot, long-term investment plans are the way to go since you can start putting money down now and wait for the proper time to spend it.

Typically, investors who choose short-term investing alternatives aren’t interested in waiting years to see their money multiply several times. Rather, they seek speedy and effective outcomes. Short-term investment ideas might help them out in this situation. In India, numerous short-term investment options can provide high returns in a short period, such as a year or even a few months like a monthly income scheme.

List of Long Term Investment Plans

Here are the top long-term investment plans in India with good returns that any Indian might consider while investing for future objectives or financial needs.

Depending on the type of objective, time frame, and risk tolerance, one can select any of the best long-term investment alternatives listed above and begin saving. Let’s take a closer look at each investment plan and its features: –

1. Fixed Deposit (FD)

When there were few alternatives in India, this was the most conventional kind of investing. Fixed deposits offered by banks are the safest, as the money can be invested for longer periods, such as three, five, or even ten years, with a fixed rate of return ranging from 3% to 6.5 percent per year. It is possible to withdraw it once the period has ended. FD calculator online can be used to determine the maturity amount.

2. Post Office Savings

Post offices, like banks, offer a variety of savings plans, which are increasingly popular due to their security and higher interest rates better than monthly income scheme. A monthly income scheme is suitable for investors who desire a regular fixed income with guaranteed monthly payments at a fixed rate of interest. The post office savings account, post office monthly income scheme account, 5-year senior citizen savings plan, National savings certificate, Kisan Vikas Patra, Sukanya Samriddhi Yojana, and others are some of the most well-known post office savings programs.

3. Public Provident Fund(PPF)

This is comparable to the Employee Provident Fund (EPF) offered to paid employees, with the exception that anybody can register a PPF account. PPF investments can be kept for up to 15 years, with a current rate of return of 7.1 percent set by the government each year. The most important benefit of investing in a provident fund program is that it qualifies for a tax credit under section 80C.

4. Stocks and mutual funds

Stocks are the best place to invest if you want to earn high returns over a long period. You can invest directly in long-term investment stocks or mutual funds through a systematic investment plan (SIP). In any case, you should expect 12 to 16 percent returns, with 20 or 30 percent returns possible if the economy is performing well. Large-cap and mid-cap funds with a proven track record of providing exceptional returns are some of the finest mutual funds for long-term investing.

5. National Savings Certificates (NSC)

NSC is a safe long-term investment option offered by the post office and a few public sector banks in India. The investment period is five years, and one may begin saving in NSC with as little as Rs 100, making it a viable choice for persons in the unorganized sector to begin saving. The present interest rate is 6.8% each year, and the Indian government, like the PPF, sets the rates every year.

In the market, there are many different types of long-term investing alternatives. You must choose the proper one based on your objectives, budget, and risk-taking capacity. Bank Fixed Deposits (FDs), Post Office Savings Schemes, Public Provident Funds (PPFs), National Savings Certificates (NSCs), Corporate Fixed Deposits, Sukanya Samriddhi Accounts (SSAs), Unit Linked Insurance Plans (ULIPs), National Pension System (NPS), Stocks and Mutual Funds, and Real Estate are among the various long-term investment options. FD Calculator online lets you figure out how long your fixed deposit will last and how much interest you’ll get.

If you’re seeking long-term investment opportunities in India, the aforementioned possibilities are worth considering. However, you should carefully review and analyze each investment plan before deciding on one so that you may get the most out of your selection.

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