Investments are ideally long-term financial plans that are to be implemented only after detailed research and much thinking to one’s future. Many investors, in the frenzy of making quick bucks invest their earnings in a risky or unworthy instrument. However, the instruments that promise to double your earnings in a rather quick period are the ones that are riskier and might hurt your finances. To avoid such grim circumstances you must be careful before investing and to help you we have brought the best long term investment options for you:

NPS

NPS or National Pension Scheme is an instrument that will provide great benefits especially if you start it during an early stage of your career. This is because you will have to pay a monthly deposit starting from Rs. 500 till your retirement. After retirement, 40% of your accumulated interest accrued earnings will be directly paid to you and the remaining 60% will be paid to you as a pension every month. 

PPF

PPF i.e. Public Provident Fund is a scheme run by GOI and has a tenor of 15 years. It is usually preferred by self-employed people who are not eligible to invest in EPF (Employees Provident Fund) and it also provides considerable returns upon maturity. However, its withdrawal policies are not lenient, and therefore, it is not suited for individuals who are looking for flexible long-term investment plans. 

Senior Citizen Saving Scheme 

SCSS or Senior Citizen Saving Scheme is a reliable investment option for anyone older than 60. You can apply for an SCSS through a bank or post office and though the offered interest rates are high, they are revised every quarter by the government. 

The initial tenor of SCSS is 5 years and you can extend this tenor by another 3 years. Also, the maximum amount that you can invest in SCSS is capped at Rs. 15,00,000. 

Fixed Deposits 

A fixed deposit is a convenient instrument that can be used for attaining your long-term investment needs. The flexible tenor and lenient withdrawal policies make FDs a better option than the above-mentioned schemes especially at times where you need funds urgently. 

As bank FD rates are not high enough to beat inflation, you can think of investing in company FDs like the one provided by Bajaj Finance. The FD plans of Bajaj Finance will steer your investments at 7.25% and provide returns that are comparable with SCSS, PPF, or NPS. The reasons for investing in this lucrative investment plan are specified below:

Exact Prediction of returns 

While investing in long-term investment plans, you often do not know the exact amount you will be getting post maturity. However, this is not the case with Bajaj Finance FD plans as an FD calculator is available to provide you clarity on the returns, applicable interest rates, tenor, and other options. 

 Bajaj Finance FD Calculator is easy to use and allows you to compare various FD plans to achieve your long-term financial objectives smoothly. 

Best for senior citizens 

Senior citizens would like to invest in long-term instruments that provide high returns and a stable environment. Bajaj Finance FD has the perfect mix of high and risk-free returns as it not only provides a 0.25% higher FD interest rate to senior citizens but also is deemed as a stable instrument by reputed credit rating agencies like CRISIL and ICRA. 

If you are not a senior citizen then also you will be able to get sufficient returns as the base interest rate itself is quite high. Moreover, non-seniors will get a 0.10% additional FD rate on investing via an online FD form. 

The option of cumulative FDs 

When you strategize your financial plans for the long term, you will need an instrument that provides surplus returns over a particular period. The option of cumulative FDs provided by Bajaj Finance gives you compounded returns as your interest earnings get added to the principal in every interest calculation cycle excluding the first one. 

With longer tenors, this snowball effect will be more prominent and you will get a high maturity amount upon tenor completion. You may also reinvest your returns by selecting the auto-renewal option provided in the FD form.

An ideal long term investment would be the one that provides surplus returns without compromising the safety of your investment. When we speak of such instruments, options like NPS, PPF, NSC, etc. pop-up in our mind automatically as they provide both stability and high returns. However, these instruments do not provide easy withdrawal options due to which you might have to choose options like a fixed deposit.

As bank FDs are offering low-interest rates you can go for company FDs like Bajaj Finance FD that offer interest rates of up to 7.25%, flexible tenor, easy liquidity options, and other options. The benefit of compounded returns that this FD scheme provides along with stability makes it a solid long term instrument for you.