The Top 5 Indian Long-Term Investment Opportunities for 2023

Mar-18-2023Blog by – Mr. Dhruv AjmeraRead Time: 3 Min.Word Count: 512
11The Top 5 Indian Long-Term Investment Opportunities for 2023

Get in 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.


Here are our top recommendations for long-term investments for this year.


1. Public Provident Fund (PPF)

PPF is 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.


However, 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.


Equity investment 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.


3. Bonds

The 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.


However, 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

Mutual 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.


You 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 accordingly.


It is necessary to note that unlike stocks, you cannot do intraday trading with mutual funds.


5. Real Estate

Property investment is a good idea as it gives a stable source of income and generates profits from appreciation. It also offers several tax benefits.


However, transactional costs are very high in real estate. It is also difficult to liquidate real estate investment, especially when you need to quick or emergency money.


If you 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 and equity investment advisory firm can help you manage your money with more confidence.


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