Investing is all about planning and having a risk taking approach in order to get higher returns. Long term investment needs right choice of investment option and waiting patiently till you are ready to redeem them to meet your financial goals. There are some investments that carry high risk but have the potential to generate high inflation-adjusted returns than other asset class in the long term here are some long term investment options by FinanceShed.
Source : quistvaluation.com
Investing in stocks may not be everyone’s cup of tea as it’s a volatile asset class and there is no guarantee of returns especially when you have chosen a wrong stock you are sure to lose your investment. You can invest into direct equity through secondary as well as primary market. Over the long term investment in direct equity have offered the maximum return but it comes with high level of risk.
Equity Mutual funds
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Equity mutual funds invest in equity stocks. Investment in mutual funds work more or less in the same way as investment in partnership works. Investment in mutual funds allows the investor to get the professional services of money manager and also to access the diversified portfolio although limited investment is done.
Public Provident Fund
Source : ccaps.in
A lot of people turn to this long term investment plan. This is most attractive investment option for small investors as it comes with highest percentage of post-tax returns. Also for investment in public provident fund, you are eligible to a tax rebate subject to maximum limit. Investment in PPF comes with the least risk and the only risk carried is the Government risk. The only negative thing here is that you cannot have any liquid money on hand. If no liquidity is not a big deal for you then you must definitely go with this option.
Source : bondevalue.com
The RBI bonds come up with a tenure of 7 years. The government has replaced the 8% taxable bonds with 7.75% taxable bonds. RBI bond investment is the best one for those who are looking for assured and fixed returns with conservative approach.
Life Insurance Policies
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Life Insurance Policy investment is helpful for tax savings. If this is the only investment you are doing then be careful as it comes with costs such as death benefit coverage and other overheads. It is important to insure your life if your financial needs and profile so require.
Source : landdeynaija.com
Investment in house property is one of the best options for long term investment. The most important aspect to be considered when investing in real estate is the location of property. You can earn from your real estate in two ways that is rental income and capital gains. Also if the location is great you can earn a big deal of money.
Investment in Gold
Source : moneycrashers.com
This is the most conservative way of investment especially for Indians. An alternate way of owning paper gold in a more cost-effective manner is through gold ETFs as this carries the least cost.
These were some of the most effective and low cost long term investments.