Which are the Ideal Long-term Investment Options in India?
Investing in long-term instruments offers better returns as you hold them for a long period. For instance, when you choose a long tenor for your fixed deposits, the interest gets compounded. As a result, you receive higher returns on maturity, Long-term instruments are also suitable for securing the future of your children. However, as they offer gains after a long period, you must be patient enough and maintain them even during emergencies. Here are a few options that can serve your long-term investment goals:
If your risk appetite is low, go for PPF as it is a risk-free government-sponsored investment scheme. Also, it helps you plan for your retirement and balance the risk-return ratio of your investment portfolio.
Along with high returns, it offers tax benefits for investments up to Rs. 1,50,000 per year. It comes with a maturity period of 15 years and partial withdrawal can be made only after completing 6 years of investment period.
When it comes to the risk factor, bonds are somewhere between market-linked instruments and fixed income instruments. You can opt for government bonds or corporate bonds as per your risk-taking ability. When you invest in bonds, you are lending out a loan to a public or private entity that offers a high-interest rate in return. You can expect to earn steady returns on choosing a longer tenor for your bonds.
National Pension Scheme or NPS is a long-term investment scheme that offers steady returns with security for the invested capital. It allows you to invest every month till retirement and offers a lump sum amount along with a monthly pension once you retire. The invested capital goes into government bonds, stocks, and some other instruments. Therefore, the NPS returns cannot be determined exactly.
Fixed deposits also known as term deposits are stable investment options as they offer fixed returns and stability irrespective of whether you choose a short or long term. Also, reinvest the FD returns for multiplying the interest income over a longer tenor.
The term deposit interest rates have gone down especially when it comes to bank FDs. For gaining high returns, invest in Bajaj Finance FD that offers an FD interest rate of up to 7.05%. It is a safe investment alternative as CRISIL and ICRA have recognized it for providing safety to the investor’s capital. You can determine the returns exactly using an FD calculator.
The flexibility provided by Bajaj Finance FD when it comes to selecting the lock-in period makes it a much convenient instrument for planning investment. You can choose any tenor between 12 and 60 as per your requirements. Also, you have the alternative to invest in multiple FDs and choose a unique tenor for each deposit. The option of investing in several FDs increases liquidity options and helps you to maintain your investment while taking care of your emergency fund needs. It gives you the option of spitting your corpus in deposits of varying tenor to take care of your long-term and short-term investment goals simultaneously.
An online FD form helps you open an FD account with ease and you also get a 0.10% higher interest rate for investing online. A 0.25% higher FD rate is applicable if your age is over 60 years. Bajaj Finance FD allows you to borrow a loan up to 75% of your FD value. It helps to maintain your investment even during a crunch situation by opting for this collateral-free loan against your deposits. All these benefits along with the ease of investment and high returns make Bajaj Finance FD a lucrative investment option in India.