From PPF to Mutual Funds, here are the top 5 long term investment options

January 23, 2022

From PPF to Mutual Funds, here are the top 5 long term investment options

Are you looking to create wealth with a long-term investment approach? There are a host of options such as PPF account, fixed deposit, mutual fund & more that can help fulfil your life goals and lead you to a financially peaceful life ahead.

Everyone dreams of having a financially stable life. Regular savings is just one of the facets that can help you fulfil short-term goals, but it cannot help in beating the growing inflation in the country. Therefore, it is necessary to invest and explore investment options that will help you create wealth with a long-term approach. Long-term investments are usually for more than 5 years or 10 years. Whether you want to save for your child’s education, marriage, or simply save for retirement, this type of approach is a great way to accumulate funds.

Thus, here are some of the long-term investments that you can opt for in 2021:

Public Provident Fund (PPF)

With a minimum deposit of Rs.500, you can open an PPF account. PPF offers a high degree of safety in terms of protecting your investment. The maximum tenure is up to 15 years, and the PPF interest rate is offered at 7% p.a. Partial withdrawal can be opted only after 5 years. Any resident Indian can open an online PPF account instantly with ICICI Bank.

National Pension Scheme:

This is a voluntary retirement savings plan sponsored by the government of India. Any individual between 18 and 75 years can apply for an NPS account with a minimum deposit of Rs.500. The NPS rate of interest varies from 9% to 12% p.a. You can start with an NPS account online with the help of ICICI Bank Internet Banking.

Fixed Deposit:

This is the traditional form of investing in India. It is suitable for long-term and short-term investors. You can invest for a tenure of 10 years. With an FD account you have the flexibility to make premature/partial withdrawal in case of any urgent funds’ requirement. ICICI Bank allows you to open an online FD account through the iMobile Pay app and Internet Banking.

Sukanya Samriddhi Yojana:

Sukanya Samriddhi Yojana (SSY) is a savings scheme backed by the government that allows investors to save for girl children. Any resident individual can initiate the account opening process with a minimum of Rs.250 and a maximum of Rs.15000 in a financial year. The SSY scheme has a lock in period of 21 years. A parent can create a sizeable corpus at the rate of 7.6% p.a.

Mutual Funds:

If you are ready to invest in low-risk or moderate-risk assets, then mutual fund investment is one of the best options for long-term investment. For a long-term approach, you can opt for a systematic investment plan (SIP).

These are some of the investments for investors with a long-term approach. The option you choose should be based on your goals, liquidity needs, investment horizon, and risk appetite.

Investing in Mutual Funds could be a wise thing for people who do not understand the Stock & Bond Markets. Mutual funds have different schemes available for varied requirements/goals of investors.

One of the important advantages of a mutual fund is that it allows one to capture the returns of an entire segment of the market without having to buy and sell individual stocks or bonds.

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