Table of ContentsIntroductionFeatures of Long Term InvestmentsWhat the Investor WantsLong Term Investment Plans in IndiaReasons to Stay Invested in Long Term PlansPath from mutual funds to long term investmentsLong term investment trends in IndiaConclusionTrue financial independence does not come from money, but from knowledge and investing in long term investment plans. A long-term investment plan is a plan that protects the investor family from any uncertainty and sometimes provides financial support. Learning the right way to manage money at every stage – whether earning, protecting, budgeting, saving, spending, leveraging, investing or insuring it – will create a creation of long-term sustainable wealth. In principle, all long-term plans are to be considered savings plans. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get Original EssayPerhaps most of the long term investment plans are such that they provide financial freedom during the elderly periods of life. Having an alignment between one's financial goals and one's investment plan would only ensure continuous and stable income at a later point in time and make the most of current cash outflows. The investor should also periodically continue to review and refine the portfolio allocation based on changing financial objectives. All long-term plans are designed to meet the specific set of needs of its clients - whether it is an investment for higher education, child marriage, construction of a house or compensation for medical problems later in life. This article focuses on such long-term plans that would protect the future of investors either by helping them deal with uncertainties or by providing a stream of income. Keywords: Financial Independence, Long-Term Investment Plans, Creation of long-term sustainable wealthIntroductionGenerally, when an investment is made for a period of more than 5-6 years or even 10-15 years, it is called long-term investment. Basically all long term investment plans aim to secure your future and become useful at any point of life. While there are quite a few short-term investment plans that can also be helpful, long-term investments have their merit due to their ability to create more returns than short-term investments. Here, such long term investment options in India are described through which one can smartly diversify their investment portfolio and grow their money further. Having an alignment between one's financial goals and one's investment plan would only ensure continuous and stable income at a later point in time and make the most of current cash outflows. The investor should also periodically continue to review and refine the portfolio allocation based on changing financial objectives. Diversifying the risk of the investment portfolio means spreading it across various stocks, mutual funds, bonds and debentures and other different instruments. The investor should never invest more than 10% in any of the investment plans in the portfolio and can remain protected if any of the above options flop. Characteristics of Long-Term Investments The best long-term investments all share similar characteristics. They require less management than theirshort-term counterparts. Provides long-term growth. Are low risk. Have a long-term performance history. What the investor wants Good returns on investment Reasonable level of risk Favorable tax treatment Ease of investment, withdrawal Long term investment plans in India When someone starts saving money for education expenses , marriage, etc. of your child, which are a long-term investment. One can choose from a wide range of investment products depending on the risk carrying capacity. Being a long-term investor has its own drawbacks, as these types of investments require considerable commitment and patience. Before opting for the long-term investment options, one should always set aside some amount for an urgent crisis that may result in any kind of financial difficulties. PPF (Public Provident Fund) Account: The Public Provident Fund or PPF is one of the best and safest long term investment options in India, completely tax free. PPF account opened in any bank or post office is one of the best long term investment products. Under this, the money will be locked in for a period of 15 years and will earn compound interest. In addition, one can also extend the PPF account in blocks of 5 years. But less liquidity is a big disadvantage for PPF account. Partial withdrawal of the investment can be made at the end of the 6th year. However, there is an option to take a loan against the PPF account balance.Investment in Mutual Funds: A mutual fund is a set of financial instruments grouped into a single fund by a manager. A mutual fund run by a manager with a proven track record of success is likely to perform well over the long term. Again, one of the keys here is diversification. Mutual fund investments are generally preferred by people who want to invest in stocks and bonds with a balance of risk and return. In recent years, investing in the stock market through mutual funds has gained popularity. Many people are educated and want to have a taste of the share market and for this purpose, mutual funds are the best option to enter the market. One can invest in mutual funds for a longer period of time through a Systematic Investment Plan (SIP) and get a much better return compared to other investment products. SIP helps build a portfolio over a longer time horizon with small investments at regular intervals, reducing the risk of market instability. Direct Stocks or Buying Stocks: Even though investing in direct stocks is risky, but if one can invest for long term duration more than 15 years, higher return is expected. Two ways to invest in stocks: Through the primary market (by applying for shares offered to the public) Through the secondary market (by purchasing shares listed on a stock exchange). However, frequent trading is recommended for the long-term market investor. run. As an investment option, investing in stocks is considered to carry a high level of risk. Real Estate Investment: Real estate is a booming industry in India. It offers huge prospects in all major sectors such as housing, commerce, manufacturing, hospitality, retail, etc. As an individual investor, purchasing an apartment or land could be the best decision for yourinvestment portfolio. Real estate is considered the “money-making industry” in the country. Real estate investments in India guarantee an annual return of 30-100%. But to get this benefit, one needs to do proper research and then purchase property in locations where prices could reach a significant level in the next 5-10 years. Investing in Gold: Gold is favored by many as a long-term investment. investment, in part because it has been used as a measure of wealth for almost as long as humans have cared about measuring it. Gold tends to appreciate slowly over time, making it a bad bet for the short-term investor and a smart bet for someone investing in it for the long term. Although most advisors recommend placing only a small portion of your portfolio in gold, it remains one of the best long-term investments. One can invest in gold at any time in any format like gold depository scheme, gold ETF, gold bar, gold mutual fund, etc. In the long term, more than 10 to 15 years, the return will certainly be good. In case of gold deposit scheme, the investor can deposit/invest at least 200 gms of gold in exchange for gold bonds. The bond will have a tariff-free interest rate of 3-4% with a lock-in period of 3-7 years. Gold bonds do not entitle you to any kind of capital gains or wealth tax or tariff. Depending on the investor's preferences, the insured amount can be recovered in cash or gold. Post Office Savings Schemes (POSS): Postal Savings Schemes are popular due to their higher returns. POSS Monthly Income Plan is mainly suitable for retirees or people with regular income needs. To be a government. savings plan, it presents a very low risk. Also, there is no TDS in a POSS. The Post Office offers various schemes such as National Savings Certificates (NSC), National Savings Scheme (NSS), Kisan Vikas Patra and Monthly Income Scheme. Among them, NSC for 10 years is a good post office investment option with a guaranteed return amount. Corporate Fixed Deposits: Corporate FDs are preferred over bank FDs due to their higher interest rates. Corporate FDs are instruments used by companies to borrow money from small investors. You should choose the investment period carefully because the money cannot be withdrawn before maturity. Unlike bank FDs, corporate fixed deposit schemes are not covered by any insurance benefits. These instruments are not regulated by the Reserve Bank of India. Therefore, corporate FDs are mainly suitable for long-term investors who can bear a certain level of risk. Initial Public Offerings (IPOs): IPOs are often presented as “once-in-a-lifetime” opportunities because they only happen once for each company. IPOs are very attractive if they are launched by a reputable company. IPOs are little different from the average stock because they have many unique risks associated with them. The uncertainties associated with IPOs are mainly due to the lack of available information. In general, most companies look for long-term investors who will hold their shares. In such a case, one can invest money for a longer period and benefit from it. Unit Linked Insurance Plans or ULIPs: ULIPs invest in equity and debt markets. The ups and downs arecaptured by the net asset value (NAV). Although ULIPs are not a recommended product due to various fees, if one invests for a long period of time, ULIPs can also give a decent return on investment of 7-8%. In addition to this, one can also enjoy income tax exemption on investments, i.e. the net return will be much higher. ULIPs offer tax benefits under Section 80C. A maximum of Rs 1.5 lakhs deduction can be claimed under this plan and the redemption proceeds are also tax-free under section 10(D).Bonds: Bonds are an excellent long-term investment term because they tend to be much less volatile than stocks. average. Bonds with a maturity of 10 years or more are also likely to offer a better return than those with an early maturity. Investing in bonds could be a good option if the investor is not comfortable with mutual funds or direct investing in the stock market. There are many good bonds that offer a decent return over the long term. The investor can opt for 10-year government bonds which currently give an interest rate of 7.70%. Like the government. sets interest rates on bonds based on inflation, the investor can also opt for inflation-indexed bonds. Reasons to Stay Invested in Long-Term Plans Many investors make the mistake of abandoning their financial plans at the first sign of bad news. It would be better to take a macroeconomic perspective and realize that over the years, bull markets have lasted longer than bear markets. It's also worth noting that in most cases, upward recoveries have easily offset short-term declines. Sense of discipline: Staying compliant with the financial plan instills a sense of discipline towards long-term goals. Regular investing is probably one of the most critical aspects of wealth creation. Benefits of Compounding: The mathematical reason to stay invested was well explained by Albert Einstein, who said: “Compound interest is the eighth wonder of the world. He, who understands "Give your money time to grow. Let it work as hard as you do. As an example of this statement, the fund performance and growth projections of Reliance Mutual Fund are presented. Benefits of A complete market cycle: Understanding markets is easy, but timing them is not. Markets tend to follow a cycle of ups and downs, ups and ups. Take advantage of the opportunity to. buy low and sell high, because in the long run, good projects will always produce positive results Take advantage of long-term strategies: staying invested for a longer duration will give the investor the opportunity to benefit from the. long term strategy. Tax advantages: Long-term capital gains resulting from the transfer of shares of an “equity-oriented” mutual fund are exempt from income tax. In addition, investments in the plans. savings linked to shares of mutual fund companies are exempt under Act 80/C of the IT Act. The mutual fund path to long-term investing. Selective thinking is a common and dangerous illusion that blocks the flow of all relevant information required to make the right financial decision. Investors should not look for ways to get rich quick, but rather work on a systematic plan to protect, preserve and increase wealth.).