Top 7 Investment Options for the Long Term in 2020

Long-term financial security is the most crucial element of an ideal financial plan. In this ever-changing and uncertain environment, you can never know which events can jeopardize the financial future of your family. To be able to live in a burden-free future with your family, you must plan to invest your money in insurance and some of the best investment options in India for the long term.

Our Top 7 Investment Options For Long-Term

1. Retirement plan: If you are looking for long-term care, a retirement plan is hands down the best insurance product you can invest in. An ideal retirement plan allows you to save over time for the future years when you don’t have a regular source of income. The death and maturity benefits provide financial security when you have to pay for expenses like medical treatments without creating a hole in your life savings.

2. Endowment policy: An Endowment policy is considered as one of the best savings options a person can invest in for the long term. In return for a small amount of premium, the policyholder is provided a lump sum amount at the time of maturity or in the event of death. The fact that makes it the best long-term care insurance plan is that the maturity period is typically 10 to 15 years. You can use the lump sum amount for covering huge expenses like Child’s education or marriage.

3. Stocks and shares: Though risky, investing your money in stocks and shares can also allow you to save money for the long term. You indeed have to do intensive prior research, but you can buy shares of a good company and hold them for the long term. If the company does well in the coming years, you can sell the shares in the future and can earn a profit – this makes shares a good long term investment return

4. Unit-linked insurance plan: The plan with the dual benefits, a unit-linked insurance plan, provides you the opportunity to invest in the funds of your choice. Apart from a death and maturity benefit, you can also invest a certain portion of your money in financial funds. This allows you to get long term returns on your investments with the addition of protection against eventualities. For the long-term, it is the best savings plan as you are provided with ULIP tax benefits,  which can save you a huge amount of money in taxes, too.

5. Fixed deposits: Fixed deposits are financial insurance, which provides you with a fixed amount of interest on the amount of deposit until the maturity date. You can consider investing your money in fixed deposits to enjoy a regular interest for several years. Once matured, you can use the money to pay off your expenses, and you don’t have to dip into your savings.

6. Real estate: Real estate can also prove to be an ideal long-term investment option. A flat or an apartment can appreciate its value by a huge margin in just 15 to 20 years. You can invest in real estate and can consider selling it in the future for a decent return.

7. Public Provident Fund: This is among the favorite long term savings plans of many Indian families, especially because of the tax savings and benefits it provides. Although PPF blocks your money for 15 years, it gives better returns than fixed deposits and is exempt from tax. It disciplines you to regularly invest small amounts, which builds a corpus to be utilized in later life for big expenses.

Aastha Mestry - Portfolio Manager          

An Author and a Full-Time Portfolio Manager, Aastha has 6 years of experience working in the Insurance Industry with businesses globally. With a profound interest in traveling, Aastha also loves to blog in her free time.