Best Long-Term Investment Plans with High Returns 2022 in India

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Updated on Nov 14, 2022

Top 6 Long-Term Investment Plans in India 2022 with High Returns

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The Long term investments plans are considered for longer durations and they are likely to offer greater returns. Are you looking for any long term investment plans with high returns?

Best Long Term Investment Plans in India to Get higher Returns, 2022

The long term investment plans are schemes which allow investors to build wealth for future needs or to meet long-term financial goals.  The wealth that is built from this investment permits the investor to earn income in the long run.  Thus, in long-term schemes the investors can invest money for a term that ranges from five years to 30 years, or more. These plans cover major future goals of investors such as marriage of children, education of children, buying property post retirement and so on.

Though, there are many investors who prefer to invest in the short-term investment schemes as compared to the long term policies because they do not want to wait for long to get back their return on investment. However, long term investment allows people to multiply their money many fold. So, having a balanced investment of both short and long term is advisable.

In this blog, we are discussing the top long-term insurance plans that you can consider for your long term investment. To start with, let’s understand the meaning of long-term investment plans and their importance.

Also Read: Best Investment Plans for a Girl Child in India

What are Long-Term Investment Plans and Why are They Important?

Long term investment plans with high returns are the ones where you can invest an amount for five years and beyond with the purpose of building wealth. In this case, you can invest the amount for a particular duration as per your preference and you get the investment back only after the tenured period.  People investing in long-term schemes with the purpose of leading a comfortable life after retirement should calculate the amount in advance to build wealth accordingly.

Long term investment plans are necessary because they provide better returns. As these plans are held for long durations so they cater to long term requirements of your future including education of children, buying your own house post-retirement, for post-retirement income, marriage of kids etc.

6 Long-Term Investment Plans that are Safe

  • National Savings Certificates (NSC)
  • Bank Fixed Deposit (FD)
  • Corporate Fixed Deposits
  • Public Provident Fund (PPF)
  • Sukanya Samriddhi Account (SSA)
  • Unit Linked Insurance Plan (ULIP)

In India, there are numerous investment plans available for long durations with attractive returns. We are discussing here Top 6 Long-Term Investment Plans

1. National Savings Certificate (NSC)

NSC is a low-risk tax-saving scheme available with the post-offices across India. This is one of the best long-term investment plans backed by the government of India and assures fixed return on investment. Currently, the scheme is available at 6.8% rate of interest per annum, which is subject to vary periodically as per the directions of the government. The plan offers fixed return on investment, which is higher than in fixed deposits or FDs. NSC also presents tax benefits under section 80C. Since, no TDS is charged in NSC, so the investor can obtain full value at maturity.

Features of National Savings Certificate (NSC):

  • Minimum investment – Rs.1000
  • Maximum investment – no max. limit
  • Interest Rate – 6.8%
  • Lock in tenure – 5 years
  • Tax Benefits – Up to Rs.1.5 lakh (as per Section 80C of Income Tax)

2. Fixed Deposits (FD)

Fixed Deposit or FD is another best long-term investment plan available for a duration of over 10 years.  Fixed Deposits allow guaranteed returns on investments once they mature. In FD, you can avail higher rate of interest, however you cannot claim for any early withdrawal of the invested amount before maturity.

Features of Fixed Deposits (FD):

  • Rate of return is 2.5% to 5.5% per annum
  • Duration of FD can vary from 7 days to 10 years
  • Allows assured returns.
  • Loans are also available against FD amount.

3. Corporate Deposit 

The Corporate Deposits are similar to Fixed deposits and are available with most commercial banks. The difference between a corporate deposit and a fixed deposit is that corporate deposits are collected by corporations and used for their operations and expansions. Here the interest earned is slightly more as compared to bank Fixed Deposit, and at the same time, the threat of default is also high.

Features of Corporate Deposit:

  • Rate of return is 6% to 8% per annum.
  • Matures within five years.
  • They allow cumulative as well as non-cumulative payouts on interest.
  • Interest earned in corporate deposit is taxable as per your income tax slab.

4. Public Provident Fund (PPF)

The PPF or Public Provident Fund is another best long term investment in India available for Indian citizens. This is another long-term risk-free scheme that allow the investor to enjoy greater returns. These schemes are available for a 15 year period and permit investors to have enough savings on Income tax. The rate of interest in this scheme keeps varying year-wise, and thus it is advisable to check the interest rate before investing.

Features of Public Provident Fund (PPF):

  • Tenure is 15 years
  • Interest rate is 7.1% currently (keep changing)
  • Investment Amount is. 500 rupees minimum, and Rs.1.5 lakh maximum, per year
  • Maturity Amount is mostly depends on tenure of investment

5. Sukanya Samriddhi Yojana (SSY)

Another long term investment plan is the SSY or Sukanya Samriddhi Yojana, which is again a government backed scheme. This is a saving plan crafted to secure the future of a girl child in India. This long term scheme can be used by parents to support their daughter’s education or marriage. SSY is available with any commercial bank and post offices across the country, and is currently available at 7.6% interest rate. Another best aspect of SSY is that you deposit money in this account for 15 years and you can earn interest on the account for 21 years till it matures.

Features of Sukanya Samriddhi Yojana (SSY):

  • SSY is qualified for tax deduction under Section 80C of Income Tax Act.
  • Maturity – 21 Years.
  • Sum of maturity is non-taxable.
  • It allows investor to open maximum 2 accounts for 2 girls in a family

6. Unit Linked Insurance Plan (ULIP) 

The Unit Link Insurance Plan or ULIP as they are normally called is another recommended long-term investment option. This long term investment plan presents high return on investment and multiple benefits of offering investment along with life insurance. In this plan, a part of your invested amount is used in stocks for generating higher returns.

Features of Unit Linked Insurance Plan (ULIP):

  • Interest rate for ULIP is 8 %.
  • It allows investors to invest in the funds as per their risk tolerance.
  • Lock-in period is 5 years.
  • Allow tax deductions under section 80C of Income Tax Act, 1961.

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Conclusion 

As discussed above, there are many best long term investment plans available in India for investors to consider for long duration investments. However, it is important to research the investment schemes carefully before selecting to invest on a particular plan that could offer maximum benefits and returns.

Also Read: Post Office Saving Schemes for Boy Child in India 2022

FAQs on Long-Term Investment Plans with Higher Returns 2022 in India

Which investment is best for the long term?

Below are some of the best Long Term Saving Options for 2022:
1. PPF and EPF
2. Stocks
3. Mutual funds
4. Real Estate
5. Bonds
6. Gold
7. ULIPs
8. Equity funds

Which investment has the highest return?

Below are some investments offering highest returns:
1. Certificates of Deposit
2. Money Market Accounts
3. Treasury Bonds
4. Treasury Inflation-Protected Securities
5. Municipal Bonds
6. Corporate Bonds
7. Dividend Stocks

What are long term investments examples?

Stocks, bonds, mutual funds, ETFs, and real estate are some of the main types of long-term investments.

Where should a beginner invest?

Some of the best investments for beginner include:
1. High-yield savings accounts
2. Certificates of deposits (CDs)
3. Pension plans
4. Mutual funds
5. ETFs
6. Individual stocks

Mar 09, 2022
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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