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what is the best investment option for long-term savings?

what is the best investment option for long-term savings?

check out the best investment options available for long term savings in India to save huge amount of money taxes.
March 25, 2021
5 min read
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best investment option for long-term savings

Best Investment Option for Long-Term Savings

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when it comes to long-term investments, you always want the best return on your investments within a specified time. while the need for such returns or investments varies from one person to another, the choices are limited depending on the financial goals you want to achieve, your risk appetite, the investment horizon, and even liquidity.

considering all these criteria, here are some of the best investment options that you can depend on for long-term savings.

1. equities

there is no minimum period of investment for equities, but you do get fixed returns. however, the risks involved are high as well. regardless of this, many people still consider equity, especially direct equity, to be one of the best long-term investment options. two reasons for this could be that you get to own the companies that you buy as part of your investments and the higher rewards that they offer.

however, there are many risks involved, which is why you should consider analyzing the stock markets before investing in them.

2. mutual funds

mutual funds are an ideal option for many investors, owing to their higher returns on long-term investments. as market-linked investment options, you get to diversify your portfolio through various instruments like equity and debt funds and money market funds. 

plus, you also get to work with experienced fund managers who can guide you in making your investment decisions. transparency and tax savings are the other advantages of investing in mutual funds.

3. fixed deposits (fd)

fixed deposits offered by the different banks always stay true to their names, giving out fixed returns on your investments. they also provide financial stability and are thus safe investment tools. fixed deposits are easy to renew and tend to be less volatile, making them excellent long-term investment avenues.

4. public provident fund (ppf)

public provident funds (ppf) are among the safest and most versatile investment options for long-term investors as they offer a solid return on your investments. the tenure ranges from 5 to 15 years. you can open a ppf account right from your bank.

however, if you are still concerned about investing in ppf, you can use a ppf return calculator or a ppf maturity calculator to know your eligibility and determine your rois.

5. national pension scheme (nps)

the national pension scheme (nps) is another versatile investment option for investors looking for long-term investments. it is flexible and allows you to choose between the auto and the active schemes. however, do note that there is a lock-in period that varies as per the investor’s age.

another useful feature that nps offers is it allows you to withdraw your investments partially.

investing in the national pension scheme allows you to become financially independent even after you retire.

though there are many investment options for long-term investors, ppf would be the most ideal, especially for rookies. ppfs are safe investment options and offer flexibility in terms of tenure and return on investments. however, if you are still uncertain, you can always use a ppf calculator to determine whether investing in ppfs would do you any good.