We all aspire to lead a financially secure life, which is why opting for the right investment options is crucial. It will help us safeguard both our present and future as our savings grow. There are several benefits of choosing long term investments. They help in saving tax while offering higher returns. More importantly, they work towards fulfilling our long-term goals, such as retirement and other milestones in life.
If you are looking for the best investment plans in 2020, read this article as we discuss five options that will offer you long-term benefits.
1. National Pension Scheme (NPS)
Retirement planning should be every individual’s priority. The National Pension Scheme (NPS) is a pension and investment scheme introduced by the Government of India to provide financial security to people after retirement.
The scheme enables individuals, aged between 18 and 65 years, to open an NPS account and make regular contributions, for achieving long-term savings. Moreover, one is eligible to get deductions under Section 80C of the Income Tax Act.
2. Bank Fixed Deposit (FDs)
Bank Fixed Deposits or FDs are one of the sought-after investment options for many salaried individuals. FDs are financial investment instruments that many banks offer, and prove to be the best long term investments for beginners. Investors can deposit a lump sum amount for a fixed period and get a higher interest rate compared to a savings account.
Fixed Deposit is a safe investment plan with low risk and offers several benefits, including:
- Tax benefits under Section 80C
- The flexibility of tenure options
- Higher interest rate
3. Public Provident Fund (PPF)
Many individuals prefer to invest in the Public Provident Fund (PPF) scheme owing to low risk, safety, and long-term benefits it offers.
It is a government-backed investment scheme that provides an attractive interest rate and higher returns along with tax exemptions. The interest rate for PPF is 7.10%, applicable for the second quarter of FY 2020-21.
4. Long-term Health Insurance Plans
As healthcare costs are skyrocketing, health insurance becomes a vital requirement for any family to stay financially safe even when a medical emergency strikes without warning. Health insurance offers comprehensive protection for various medical expenses. Long-term health insurance investment helps a family to lead a financially secure life. They not only cover various medical expenditures but also offer a financial cushion through benefits such as no claim bonus and automatic recharge of sum insured. Long term health plans come with a longer tenure of 2 or 3 years.
One of the valuable investment options, health insurance plans will help a family in securing its finances. Further, opting for a health cover makes one eligible for tax deductions on the premium under Section 80D of the Income Tax Act.
5. Gold ETF
Investors may also prefer gold as a safe investment option. Paper gold is becoming a popular choice, compared to investment in physical gold. One can look forward to many benefits of investing in Gold Exchange Traded Funds (ETFs), and affordability is one of them. Long-term capital gains tax is applicable on Gold ETFs; however, there is no VAT, Wealth Tax, or Securities Transaction Tax.
Furthermore, with Gold ETF, one can invest in gold in electronic form, so there is convenience and security, whereas there are safety concerns and other charges associated with physical gold.
You can choose the investment options mentioned above and look forward to meeting your financial goals. Before making a decision, it is vital to analyse your needs and create a diversified portfolio that will protect you financially in the long run. Also, it is crucial to review your investments at regular intervals.
Health insurance investment plans minimise the burden on your savings while meeting your healthcare needs. Choose a health cover today to secure the health of your loved ones. Visit the official website of Care Health Insurance (formerly Religare Health Insurance) and select a health insurance plan. Know more about the benefits that include cashless hospitalisation, no claim bonus, and annual health check-ups.