5 Best Long Term Investment Plans and Options in India to Invest in 2022
Every savings plan can become more profitable with the increase in investment duration. And because of the prolonged retention of money, the service provides also gives a hike in interest rates. Such heightened interest rates can remarkably affect the returns when they use compound interest. Thus, providing you with the best investment schemes to invest your money in even if it is a savings plan.
There is no confusion about the benefits of a long-term plan. And that is why people prefer long term plans, especially when they have limited investment capacity. If you are also on the lookout for good a relevant long-term savings plans then stop your search. Because here you will get to know about five such best investment schemes.
Unit-Linked Insurance Plan
ULIPs are insurance plans with investment potential. They invest the premiums into nationalised bonds of varying risk factors. But the policyholder can choose which bonds to select in their plan. Thus, getting the decision-making rights and making use of your personal investment research skills. ULIPs are also one of the highest interests providing insurance plans in the range of 15% to 28%. And even if ULIPs are dependent on the market your returns will never suffer because of the fixed returns.
National Pension Schemes
The national pension scheme is an open-for-all and voluntary investment scheme. EPF, PPF and GPF are sometimes mandatory and specific to various categories of employment. Anyone can start investing in NPS and get an annual compound interest of 9% to 12 %. But the plan only matures when the person reaches the retirement age of 58 years. Also, there is no maximum investment limit in NPS but the maximum tax exemption is only for INR 2 lakhs investment per annum.
Bank Fixed Deposits
Bank fixed deposits are also great investment schemes whose interest rates increase with the increase in investment duration. Some new banks even provide 8% and 9% interest rates for long term FDs. You can significantly grow your investment through these. And if the investment duration is more than five years you can get tax savings even in FDs.
Mutual funds are also an investment in stock markets instruments. But instead of an investor personally managing the funds and stock, a fund manager overlooks these activities. Every mutual fund will have a respective fund manager or team of managers who collect money from various mutual funds investors. They will then invest it in stocks on the investors’ behalf and return the profits at the term-end. These plans can be risky but with good fund managers, you can get returns as high as 20% to 30% within five years.
Gold Sovereign Bonds
Gold Sovereign Bonds are also one of the best investment schemes in India in 2022. It is because of the upward trend in the gold price seen over the past years. Gold bonds are from the government so there is no doubt about their reliability. GSB provides variable returns according to the price of the gold at plan maturity. But it also provides another 2.5% fixed interest rate per annum other than the variable returns. Thus, providing dual benefits to the investor.
These five savings plans are the best investment schemes, especially ULIPs. It is because there are plenty of tax benefits and a very high interest potential. However, ULIP plan are also a bit risky. But, don’t worry. You can reduce the risks by choosing low-risk.