touch today to know more. One of the basic financial mantras is to allocate a
certain percentage of your portfolio toward long-term investment avenues. This
is because your money gets more time to grow through compounding factor.
are our top recommendations for long-term investments for this year.
1. Public Provident Fund (PPF)
one of the most preferred investment options among conservative investors. It
gives guaranteed risk-free returns as it is backed by the central government of
India. The returns, withdrawal of maturity amount and partial withdrawal before
maturity are fully tax-exempt. Moreover, you can avail tax deduction benefit
under Section 80C.
PPF has a lock-in period of 15 years which lowers its liquidity considerably.
2. Direct Equity
Direct equity allows
you to invest in stocks of companies and trade them on the stock exchange.
Historically, equity trading has
been known to beat inflation and generate higher returns than other asset
class. You get income in the form of capital gain and dividends. There is also
high liquidity as you can sell them anytime.
can carry a high risk which you can offset considerably by doing adequate
research on the stocks you want to invest in. Alternatively, you can also
consult a stock
market advisor in India to help you pick
the right stocks as per your risk tolerance appetite and investment goals.
government of India and corporates issue bonds to public. There are four types
of bonds: G-Sec, sovereign gold, zero coupon and corporate. Bonds give you a
regular interest payment. They are ideal for investors who want a reliable cash
stream on market-lined instruments.
bonds offer a low rate of interest. There is a risk of default by a company if
it is a corporate bond.
4. Mutual Funds
fund is a great long-term option for investors who lack time or expertise to
invest in market-linked instruments but. It is a professionally-managed scheme
run by an asset management company. Mutual funds allow you to diversify their
money in a mix of equity and debt funds, and get the best of both worlds.
can either invest lumpsum amount or make small, disciplined investment at
regular intervals through Systematic Investment Plan (SIP). A mutual
fund calculator is
a useful tool to calculate returns on mutual funds and plan your investment
necessary to note that unlike stocks, you cannot do intraday trading with
5. Real Estate
investment is a good idea as it gives a stable source of income and generates
profits from appreciation. It also offers several tax benefits.
transactional costs are very high in real estate. It is also difficult to
liquidate real estate investment, especially when you need to quick or
plan to invest in market-based financial instruments, it is advisable to do it
through a financial services provider to make smart and informed decisions.
Ajmera x-change, a reliable mutual funds advisor
firm can help you manage your money with more confidence.