There may be several choices with regard to the best investment plan that caters to all your specific requirements. Now, what happens if you are looking for growth in the long term? There are numerous options that may otherwise be slightly confusing in case you do not understand more about their features and benefits. Hence, it is recommended that you take a look at some of the choices below and then sync your long-term goals with the same before making a final decision.
Investment Options Worth Checking Out
Here is a list of some of these investment options that are certainly worth considering.
- Public Provident Fund- These investments are ideal for people with a lower risk appetite. It offers returns that are not linked to market fluctuations. The interest you earn and the final sum you get at maturity will all be tax-free. At the same time, the contributions you make will also be tax-deductible up to Rs. 1.5 lakh (Section 80C)
- ULIP- One of the most effective investment choices, this one gives you both insurance and investment options. You can get life coverage for the policy tenure, while investments are strategically made in equities, balanced funds, and debt instruments, depending on your chosen allocation and risk appetite. Fund-switching is possible to maximize or safeguard returns, while Section 80C benefits are also applicable in this case. If you do not outlive the policy tenure, the insurer will be paying the fixed death benefit or sum assured to the nominee. Alternatively, it may pay the fund value in case it is higher.
- ELSS- Choosing equity-linked savings schemes can be a smart move to save for the future. You will find these plans to be highly effective for long-term wealth generation. Section 80C deductions are available on these investments, although there is a lock-in period of three years that should be noted.
- FDs- Tax-saver fixed deposits are a good option in this category. Regular fixed deposits do not offer as many tax advantages. The former comes with lock-in periods, and you will be able to get deductions under Section 80C for your contributions.
- National Pension Scheme- NPS is a safe choice for ensuring financial safety for the long term. You can make the contributions to the plan all throughout your professional life. Thereafter, you can withdraw 60% of the amount after retirement. The other 40% will be used to purchase the annuity plan. This will generate a regular monthly pension for you. NPS also gives you handsome tax benefits alongside, making it a good option overall.
Signing off, it can be said that while there are multiple investment options available to you, it requires time and research on your part as well. Do invest the time and effort required to choose the best possible tax-saving investments for long-term gains. You can take professional guidance and insights if you are confused regarding the ones to choose for your portfolio. Here’s to building a sizable corpus for the future.
