Last Updated:July 04, 2025, 11:14 IST
Multiple long-term investment options are available in India with funds allocated to assets that provide safe and strong returns over an extended duration.
Long-term investments help compound wealth with tax benefits. (Representative Image)
Long-term investment involves putting money into assets that are expected to grow steadily over time, typically spanning several years or even decades. Unlike short-term investments that focus on quick returns, long-term investments are designed to build sustainable wealth and ensure financial stability in the future.
Investors who choose this route often commit their funds to government-backed schemes, private investment plans, mutual funds, fixed deposits, real estate, or life insurance policies. By staying invested over a longer period, they benefit from the power of compounding, enjoy tax advantages, and create a reliable source of passive income. These investments also act as a cushion against inflation and help individuals achieve their long-term financial goals.
Public Provident Fund
The Public Provident Fund is a government-backed investment scheme where one can lock their money for a period of up to 15 years with the option to make extensions in blocks of five years. Investments in PPF are eligible for tax deductions under Section 80C of the Income Tax Act and the interest earned is tax-free. Those eyeing a safe, low-risk investment in the long term should invest in PPF, which offers attractive interest rates and tax-efficient growth.
National Pension System
The National Pension System (NPS) is another government-sponsored scheme where individuals make regular investments during their working days to build sufficient wealth to ease through their retirement years. As per the NPS model, investors can choose their asset allocation in equities, corporate bonds, and government securities. This scheme also falls under the government’s Income Tax Act. When retired, an individual can withdraw a portion of the corpus as a lump sum, while the rest is used to purchase an annuity that ensures a steady income stream.
Systematic Investment Plans
SIPs help individuals grow their wealth through regular fixed-sum investments on a monthly, quarterly or yearly basis into mutual funds. Investors can benefit from equity or debt funds, or a combination of the two. The SIPs are safe from market volatility and give high returns over the long term as they operate on rupee cost averaging, allowing investors to buy more units when the market is low and fewer units when the market is high.
Fixed Deposits
Offered by Banks and other financial institutions, Fixed Deposits, are financial instruments where investments are made for a specific tenure. They provide assured returns and are therefore considered one of the safest bets for a long-term investment strategy. Apart from high interest rates, FDs come with tax benefits. They are ideal for those seeking low-risk investments and wealth accumulation.
Life Insurance Cover
Buying a whole life insurance coverage offers coverage for the individual’s entire lifetime, provided the premiums required are regularly paid by the insured. They have a strong savings component and are suitable for persons seeking long-term security and wealth compilation.
Real Estate
Purchasing property can be a highly beneficial long-term investment option as it helps generate significant wealth through inflated rates of real estate in the form of rental income or capital appreciation. Real estate investment is a tangible asset with a steady flow of income. However, factors such as location, infrastructural development and market demand for a property must be kept in mind before investing.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
- Location :
Delhi, India, India
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