Best Long-Term Investment Plans With High Returns 

The long term investment plans are schemes which allow investors to build wealth for future needs or to meet long-term financial goals.

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.

Top 6 Long-Term Investment Plans in India

5. National Savings Certificates

2. Bank Fixed Deposit (FD)

3. Corporate Fixed Deposits

4. Public Provident Fund (PPF)

1. Sukanya Samriddhi Account (SSA)

6. Unit Linked Insurance Plan (ULIP)

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?

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.

Features of National Savings Certificate (NSC):

National Savings Certificate (NSC)

1. Minimum investment – Rs.1000

2. Maximum investment – no max. limit

3. Interest Rate – 6.8%

4. Lock in tenure – 5 years

5. Tax Benefits – Up to Rs.1.5 lakh (as per Section       80C of Income Tax)

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.

Features of Fixed Deposits (FD):

Fixed Deposits (FD)

1. Rate of return is 2.5% to 5.5% per annum

2. Duration of FD can vary from 7 days to 10 years

3. Allows assured returns.

4. Lock in tenure – 5 years

5. Loans are also available against FD amount.

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.

Features of Corporate Deposit:

Corporate Deposit

1. Rate of return is 6% to 8% per annum.

2. Matures within five years.

3. They allow cumulative as well as non-cumulative      payouts on interest.

4. Interest earned in corporate deposit is taxable as      per your income tax slab.

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.

Features of Public Provident Fund (PPF):

Public Provident Fund

1. Tenure is 15 years

2. Interest rate is 7.1% currently (keep changing)

3. Investment Amount is. 500 rupees minimum,      and Rs.1.5 lakh maximum, per year

4. Maturity Amount is mostly depends on tenure of      investment

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.

Features of Sukanya Samriddhi Yojana (SSY):

Sukanya Samriddhi Yojana (SSY)

1. SSY is qualified for tax deduction under Section     80C of Income Tax Act.

2. Maturity – 21 Years.

3. Sum of maturity is non-taxable.

4. It allows investor to open maximum 2 accounts      for 2 girls in a family

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.

Features of Unit Linked Insurance Plan (ULIP):

Unit Linked Insurance Plan (ULIP)

1. Interest rate for ULIP is 8 %.

2. It allows investors to invest in the funds as per      their risk tolerance.

3. Lock-in period is 5 years.

4. Allow tax deductions under section 80C of Income      Tax Act, 1961.

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