Investors from all around the world want to secure their financial conditions for the future. As the economy has started to recover, it has become more important to invest in a long term plan this year. Risk and returns are a major part of investments. Instead of keeping your money idle in banks, you can think of investing it in different avenues.
Best long term investments in the coming years:
● Growth stocks: Stocks are a representation of a share in the ownership of a company. These are some of the best investment avenues that you can consider for the coming years. The trades of stocks are made electronically in the stock market. Growth stocks are an asset class in which there is no guarantee of returns. You need to open a Demat account to invest in this equity.
● Fixed deposits: Fixed deposits come under the category of low-risk investments. With the help of a fixed deposit, you can get a fixed amount of returns at various time intervals. Under this investment option, the bank is insured by a maximum amount of Rs 5 lakh for both interests and principal.
● Mutual Funds: It is a collective investment in which a fund manager collects the money from people and invests them in stocks. According to India's Securities and exchange board, the scheme for mutual funds invests around 65 per cent of its assets in equity-related instruments. Mutual funds come under the category of medium-risk investments.
● Public provident fund: It makes a safe investment option as the interest and the sovereign guarantee backs the principal. It requires a minimum investment of around Rs 500. The life cycle of the public provident fund is of 15 years. The interest rate is revised every quarter by the government. At present, the interest rate of PPF is 7.9%.
● Savings scheme for senior citizens: It is a government-based scheme for senior citizens above 60. You also get paid a high rate of interest that is set by the Indian government. Savings scheme for senior citizens has a tenure of 5 years that can be further extended also. A senior citizen can also claim a deduction amount of Rs 50,000 under section 80TTB. The interest rate for senior citizens' savings schemes is 7.4%.
Linked with market
Premature exit allowed
Linked with market
Savings scheme for senior citizens
Public provident fund
Partial withdrawals allowed
The investment avenues that you choose will depend on your future goals and liquidity needs. Whenever you start selecting an investment avenue, you need to know your risk profile.