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5 Best Long Term Investment Options In India

Published On Aug 04, 2021 10:00 AM By InsuranceDekho

Investments are an incredible instrument for wealth creation and to beat inflation in the long run by having an excellent financial portfolio. Today, you have many investment options to pick from, and it might be challenging to figure out which one is best for you. While you must choose investment plans based on your risk profile, time horizon, and other variables, some investing platforms provide ideal starting points for accumulating wealth and becoming wealthy. So, let's take a look at the five best long term investment options in India. 

5 Best Long Term Investment Opportunities

Here is the list of some of the best long term investment opportunities in India.

1. Stock Market Investment

It will help if you diversify your stock portfolio by buying stocks from various sectors and industries. Investing in stocks through a systematic investment plan (SIP) can be beneficial. It is a process in which you regularly invest a set amount of money in the stocks of your choice. It assists you in spreading out your stock purchase costs over time when you invest at various market levels. Moreover, investing in the stock market demands effective management. Despite the imposition of taxes on long-term capital gains, the returns produced by this type of investment are unrivalled. By putting together a well-balanced portfolio and diversifying your stock holdings, you can spread your risk.

2. Real Estate Investments

Real-estate investment is an excellent choice for individuals who are willing to commit a large sum of money at once in exchange for a high return in the future. The business is well-regulated, and the Real Estate Regulation and Development Act (RERA) has helped enhance the market. The demand for real estate has risen to unprecedented levels as a result of rapid urbanisation and development. Affordability restrictions have been reduced thanks to the availability of affordable house loans with lower interest rates which has enabled buyers to defer a large amount of income tax until the property loan is paid off. It's also one of the safest long-term investment possibilities.

3. Mutual Funds

Mutual funds are among the most popular investment choices that come in various forms, including debt, equity, index funds, hybrid, solution-oriented schemes, and fund of fund schemes. The plan will help you achieve your financial goals if you choose the proper mutual fund according to your risk profile. To narrow it down, equities mutual funds are the highest-rated mutual funds available since they bring in a lot of money. They do, however, come with significant risks. You can start investing in mutual funds with as little as $500 each month. It enables you to invest small amounts of money in a mutual fund plan of your choice regularly.

4. Public Provident Fund

For risk-averse investors, the PPF scheme is one of the greatest investing opportunities. Even if you don't have access to the internet, you can manage your account by going to a bank or post office. It's a long-term investment option with a 15-year lock-in period and the ability to extend the plan in five-year increments. Moreover, if you need a loan, you can use your PPF amount as collateral. You can also make an early withdrawal after the account has been open for seven years. The interest earned is tax-free. 

5. National Pension Scheme

It is a government-backed retirement-cum-pension system that provides much-needed security for your money. Investing in this plan will help you build money and provide you with a monthly pension when you retire. This investment is eligible for tax advantages. Under Section 80CCD(1B) of the IT Act, investing in the NPS allows you to receive tax benefits of up to Rs 50,000 each year. This deduction is in addition to the standard tax deductions available under Section 80C, Section 80CCC, and Section 80CCD, which can save you up to Rs 1.5 lakh in taxes every year. This plan is especially advantageous for those who do not have a PF deduction from their salary. 


All the plans mentioned above can be considered while investing. Moreover, it is advisable to choose your investment avenue after carefully assessing your investment goals, risk appetite, liquidity needs and investment horizon to get the maximum benefits. 

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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