5 best long term investment options

The financial market offers various investment options for all types of financial needs. Here are some

You should always get into the habit of saving and investing money in some form or the other. The financial market offers various investment options for all types of financial needs. 

Amid various choices in the money-making world is the long term investment option – a financial plan that grows your money for over a period of six or more years. 

Just in case you are looking at some secure options for your money, here are some alternatives to consider:

1. Fixed Deposits: This is a very simple and the most common form of investment. Bank deposits are usually considered to be one of the best options for investments. Although the rules vary for different banks, it is a safe option that gives you a considerable amount of money at the time of maturity. Your best bet would be to invest in public sector banks for good returns.

2. National Savings Certificate (NSC): National savings certificate is an Indian Government Savings Bond with tax benefit under section 80C of Income Tax Act, 1961. It’s a part of the Indian Postal Service. These certificates can be purchased from any post office in India, issued for five and ten-year maturity and can be pledged to banks as collateral to avail loans.

3. Public Provident Fund (PPF): Public Provident Fund is a well-known savings-cum-tax saving investment option introduced by the Ministry of Finance in 1968. This saving option aims to mobilize small savings by offering an investment with reasonable returns. A minimum yearly deposit of Rs 500 is required to open and maintain a PPF account and a maximum deposit of Rs 1.5 lakh can be maintained in a PPF account in a financial year. There is a lock-in period and the money can be withdrawn in whole after its maturity period.

4. Money Market Fund: This investment option gives you slightly higher returns when compared to your savings account. If you have surplus money, it’s better to invest in the money market fund.

5. Real Estate Investment: Who doesn’t want to own a piece of land? Most people invest their earnings into purchasing a house and the most important thing to consider when you invest a huge chunk of your savings in the property market is the ‘location’. Research well and check the legal papers to avoid frauds.

courtsey: msn