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What Is A Foolproof Investment Strategy For The Next 30 years?

Adhil Shetty


Q. What Is A Foolproof Investment Strategy For The Next 30 years? Rahul Kumar

A. If you wish to invest for the long term, your financial goals and your investments must be in sync. Since 30 years is a very long time, you will have to review your investments on a regular basis and switch them if and when required. Your age, your risk appetite, and your return requirement will determine your investment strategy for the next 30 years. Here are some of the best investment strategies you could consider for a period of 30 years:

  • Invest in Real Estate: One of the best assets you can invest in is real estate as it has the potential to beat inflation in the long term. You can avail a loan for 30 years at a relatively low interest rate to purchase a property. Not only will you be able to generate rental income through investment in real estate, but you can also avail the benefit of capital appreciation. Moreover, taking a home loan to purchase property also provides tax benefits.
  • Investment in Equity Mutual Funds: A part of your corpus can be invested in equity mutual funds to avail long-term benefits. The best way to invest in mutual funds is through SIPs (Systematic Investment Plans). However, you will have to diversify your investment and make changes to your portfolio when the existing funds do not perform as per expectations. Investment in mutual funds has the potential to generate phenomenal returns when done right.
  • Invest in Gold: Around 5% of your investment portfolio should be gold, and this will help you tide over economic uncertainty, periods of high inflation, and stock market volatility. You can choose to invest a part of your corpus in physical gold or sovereign gold bonds. Sovereign gold bonds also offer interest income along with the benefit of capital appreciation. Moreover, you can also claim tax benefits on long-term capital gains when you redeem them after the completion of the tenure.

Although investments cannot be fool-proof, the above-mentioned strategies can go a long way towards helping you generate good returns over a period of 30 years.

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