Investing wisely in a diverse mix of assets can optimise returns and mitigate risks. Here are some of the best investment options that can fit the criteria for 10 years best investment plans:
Equity Mutual Funds
Equity mutual funds primarily invest in stocks and have the potential to deliver high returns over a longer duration. They can be an excellent choice for your 10-year investment plan, especially if you can tolerate high risk. Always choose funds with a consistent performance history and reliable fund management.
Debt Mutual Funds
If you seek steady returns and lower risk, consider adding debt mutual funds to your investment portfolio. These funds invest in fixed-income securities such as government bonds, corporate bonds, and treasury bills.
Public Provident Fund (PPF)
PPF is a popular long-term investment option backed by the Indian government. It offers an attractive interest rate and tax benefits*, making it an ideal choice for risk-averse investors planning for long-term wealth creation.
Real Estate Investment
Despite requiring a significant upfront investment, real estate can yield substantial returns over a decade. It provides two income streams – capital appreciation and rental income, making it a lucrative 10-year investment plan.
National Pension Scheme (NPS)
NPS is a government-backed retirement savings plan. It's a mix of equity, fixed deposits, corporate bonds, liquid funds, and government funds, allowing for a balanced risk-return portfolio.
Direct Equity
Investing directly in stocks can generate high returns over a long duration. However, it requires profound market knowledge and risk tolerance. Diversifying your equity portfolio across different sectors can help manage the risk.
Gold
Gold has traditionally been a safe-haven asset, providing a hedge against inflation and market volatility. You can invest in physical gold, gold ETFs, or Sovereign Gold Bonds, which offer an additional interest rate.
Fixed Deposits
Bank or company fixed deposits offer guaranteed returns and are perfect for conservative investors. They provide the flexibility to choose the investment tenure, aligning with your 10-year investment plan.
Unit Linked Insurance Plans (ULIPs)
ULIPs offer a combination of investment and insurance. A part of the premium goes towards life insurance, and the rest is invested in funds of your choice. The long lock-in period of ULIPs aligns well with a 10-year investment plan.
Systematic Investment Plan (SIP) in Mutual Funds
A SIP allows you to invest a fixed amount regularly in a mutual fund scheme, promoting disciplined saving. It also helps leverage the benefit of rupee cost averaging, minimizing the impact of market volatility.