Best Long Term Finance Investment in India for 2017

by Pooja Late so cut

Long term finance investment offer different advantages to those who utilizes it. They compound interest such as fixed deposits in a bank and tax efficiency. These long term investments are normally held for a period of three or more years, however, commitment is required in these kind of investment even if you might be facing some financial crunches at such time. Long term finance investment renders a greater returns when it is ripe and are perfectly suited for your children when planning for their future in terms of education, marriage or lifestyle. There are various long term investment options available for one to make a choice from. But it is important to be careful when choosing as it is dependent on the risk factor and financial goals attached to such investment plan. It is called long term because you invest and leave your money until it comes to maturity. So without wasting time, let enlighten you on some of the long term investment options you have in store for you

PPF and EPF: This is among the most famous investment option in India. PPF stands for Public Provident Fund and comes with 8.7 percent interest rate. This fund is primarily for individual with low desire in saving money for a longer term. On the other hand EPF stands for Employee Provident Fund. According to Section 80C, the maximum investment required is Rs. 1.5 lakhs. The PPF interest rate is market-linked and every year reset. This fund matures in 15 years, which you can withdraw after six years.

Stocks: The second on our list is stocks and investing in stock doesn’t give you any guarantee that returns will be gained. You can opt as a part of the portfolio and percentage of allocation should be based on the risk capacity.

Mutual funds: If you are among those who invests in equities and bonds, then mutual funds is for you. This help you in balancing your return and risk. These funds comprises of different types and it will depend on the one you are investing and your ability to accommodate risk. Nevertheless, you go opt for the Systematic Investment Plan, which reduces the market risk by building a portfolio in a longer duration with small investments at regular intervals.

Real Estate: This is one of the industry that is booming in India at the moment. It has great opportunities in store in virtually all sectors including housing, commercial, manufacturing, retail, hospitality etc. perhaps if you have gotten huge cash benefits from your previous investment, you can invest in real estate.

Bonds: Bond provides with you a safer option if investing in bond is risky. You can get interest rate of 7.70 percent for a 10 year government bond. You can also opt for inflation indexed bonds, in this the rate are based on inflation.

Gold: Finally on our list is Gold. This is an all-time best choice investment product. The bond will have a tariff free interest rate of 4% with a lock in period of 3-7 years.

Author’s Bio

Adam Clark in this wonderfully and carefully written article looks at the various option available in finance investment in India. He finally gave his professional advice on what to invest in within taking your money even when you have financial demand.