In the present-day’s world, each one of us look for instant gratification. Despite being aware that discipline and patience can result in better rewards; we look for acquiring all our financial goals in the shortest time possible. We look for earning the highest return over the shortest time period. Therefore, we tend to search for the best investment plan, which can yield triple or double returns.
While a particular investment option can assist you multiply your investible amount, finding those investment options may be a tricky job. Additionally, they might take longer than anticipated to generate the desired outcomes. Thus, to grow your wealth successfully, you require aligning your investment options with your financial goals, investment time frame and risk appetite.
One of the best ways to choose the prudent investment products for your investment portfolio is to divide your life goals into three namely – long-term, mid-term and short-term. By doing this, you get a brief idea of the time you may require giving to attain a specific life goal. Post this, you can select among the investment options available based on your risk tolerance level.
Discussed here are some of the popular and best investment plans that match the three buckets i.e., long, mid-, and short-term phase. Most importantly, explained here is how you simply can combine multiple financial options to form the best financial plan for yourself.
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What’s the best investment plan for the long term?
Long-term financial goals are those that you would look at attaining in the upcoming five to ten years period. Thus, when you want to pick up the best financial plans for a long-term investment horizon, you might go for the financial choices, which are volatile but come with the potential to yield higher returns over a long time period.
This said you require deciding what type of volatility you may want to ride through and select your financial option accordingly. Read on to know some of the important financial options that may fit your investment objectives with a time horizon of five years and above i.e., long-term, the risks they hold and the returns they may yield. Ensure to use the online compound interest calculator to understand the returns you may get and to match the same with your corpus requirement and timeframe.
Direct equity
One of the prudent routes to forming wealth for meeting your long-term financial goals is to invest in equities. There are various instances of stocks that multiplied retail investors’ wealth over the long term. So, while stocks have huge potential for multiplying your funds over a long time period, the investment risks in stocks must even be considered.
You can directly invest in companies’ stocks. However, the actual challenge is to figure out the correct stocks. Given that there are more than 5,000 stocks listed on the stock exchange of India, picking the correct stocks may be an uphill task.
Equity funds
One of the ways to lower the risk of avoiding wealth destroyers is to undertake expertise assistance and diversify your investments through different equity stocks. Here’s where equity funds come into the picture. Equity funds basically make investments in stocks. However, they do not concentrate your investible in only one to two stocks. These funds ensure to diversify your mutual fund investments throughout multiple stocks. Note that professional managers run such funds. So, they put your money in a specific stock after considerable research. As an outcome, this enhances your chances of generating higher returns over a long time period.
Real estate
This is one of the common investment options among many Indians. Nonetheless, while investments in property have delivered stunning returns over the past, it has their own specific set of limitations and risks. One of the main risks with real estate is that you might not be able to redeem them over a short time period. In the rush to sell off your property, you might require selling at high discounts. Moreover, even if the fund you require is smaller as compared to the property, you may require selling the whole property for the required funds. Alternatively, you may even opt for the loan against the property option.
Gold
Gold over the years has been the symbol of wealth. Even now, this investment option has the same shine and gleam and can overcome inflation during volatile conditions. Physical gold has always stood as the traditional medium of purchasing metal. However, it has certain restrictions like additional making charges, storage expenses and designing charges. To overcome such limitations in physical gold, you can put your funds in gold via ETFs (equity traded funds) and mutual funds. Note that gold’s price generally increases when an individual looks out to make an investment in a safe financial haven amid market crises. So, gold serves as an excellent hedge against equities or inflation in volatile market conditions.
Small savings instruments
The Indian government has come up with various small saving instruments for individuals who are looking to invest in safe investment options. Such instruments provide guaranteed returns to those with slight volatility. However, you earn returns that are lower than the market-associated products like mutual funds, NPS (national pension scheme) or stocks.
This said, small saving instruments basically beat fixed deposits and inflation by a satisfactory margin. A few examples of small saving instruments for long-term investments involve financial options like SCSS (Senior Citizens Savings Scheme), PPF (public provident fund), KVP (Kisan Vikas Patra) and SSY (Sukanya Samriddhi Yojana).
Billigste Refinansiering
Billig Refinansiering Av Gjeld, a term commonly used in Norwegian, encapsulates the core idea of achieving the most cost-effective loan refinancing possible. It emphasizes the importance of minimizing expenses related to interest rates, fees, and other associated costs.
Mentioned here in a tabular form are the returns generated by the small savings schemes –
| Financial instruments | Compounding frequency | Interest rate |
| SSY (Sukanya Samriddhi Yojana) | 7.6 per cent | Annually |
| KVP (Kisan Vikas Patra) | 7.2 per cent | Annually |
| PPF (Public Provident Fund) | 7.1 per cent | Annually |
| SCSS (Senior Citizen Savings Scheme) | 8.2 per cent | Quarterly |
NPS (National Pension Scheme)
NPS is a long-term retirement concentrated financial product. This is a blend of distinct assets like government bonds, corporate bonds, and equities. Based on your risk tolerance level, you can determine how much of your funds may be invested in distinct asset classes in NPS.