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Investing for the long term is about investing in the right investments and waiting patiently until you are ready to repurchase them to meet your financial goals. Long-term investments offer several advantages. Long term savings are held for three years or more, but these types of investments require commitment even if you are facing financial difficulties.
So, let us look at the best options and long-term investment plans available from the wisdom of investing.
- Bank deposit
One of the traditional long-term savings is bank deposits. This is one of the best long-term investments as of now. Two types of deposits, such as, fixed deposits and recurring deposits, serve as long-term investment modes. As per its name, fixed deposit provides a fixed return to investors. This is the most suitable option for investors who avoid risk. On the other hand, regular and monthly recurring deposits allow investments. For investments, both offer a decent saving account interest rate that varies between 8-10%.
- Mutual funds
The next in the list of the best long term savings are Mutual funds. As all of us have seen them as Sahi Hai Mutual Funds, so Mutual funds do not need to be introduced. To invest in the stock market, mutual funds are investment vehicles that collect money from investors. Offered by asset management companies, this is a professionally managed long-term investment scheme. As there is no minimum investment period in most of the mutual fund schemes, so it makes them quite popular among investors.
- Real Estate
For a long-term investment, real estate is also an excellent avenue. However, you need detailed planning and huge capital as the sector has seen huge fluctuations. The value of your property will increase in one or two years or may take more. The location and connectivity of your property play a major role. In short, it is the best and profitable long-term avenue, for which you need skills and a huge amount of money. In comparison to other major sectors, namely housing, commerce, manufacturing, hospitality, retail, etc., real estate industry is one of the fastest growing industries with huge potential. Real estate investments provide you with excellent returns ranging from 30% to 100%. However, to gain the benefit from this, you must do a market survey. Always plan to buy a property in places where prices could rise to a significant level in the coming years.
Always consider your periodic financial needs and goals before you decide the investment proportion and start investing in options including savings bank deposits, faith based investing, real estate or mutual fund.
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