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Settling for the long term in making investments is extremely significant.

Investment in long term instruments often gives a person hefty return since the power of compounding is immense. Generally, investment above five years and above is long term investment instruments. Money9 gives you an idea of top nine investment instruments that have a tenure of 10 years or above and which give you a good return for your future.

Public Provident Fund

Public provident fund (PPF) is often called the best long term and secure investment option. PPF comes with a fixed tenure of 15 years which could also be extended by a block of five years. The current interest rate is 7.1% and it also comes under EEE category, i.e. investment, interest income and withdrawal all exempted from tax burden.

Fixed deposit

Fixed deposits can be done for tenure between seven days and 10 years. FDs more than five years are considered as long-term FDs. Fixed deposits offered by different banks and post office give out fixed returns on the investments.

National Pension System

National pension system is another very long-term investment option. This is a retirement instrument as the name implies. In NPS one can invest up to the age of 75 years. NPS is a mixed of equity and debt instruments.

Mutual fund

Mutual fund is another way of making long term investment. A person can invest up to a duration of 50-55 years if he/she wishes to invest in MF. The return is high in mutual fund, so as the risk. One can invest through SIP or lumpsum methods in mutual funds.

Recurring deposit

Recurring deposits are offered by banks and post offices. Bank offers RD for a tenure between six months and 10 years. But post office offers five-year recurring deposit. RD is also government guaranteed and safe in nature.

Kisan Vikas Patra

Kisan Vikas Patra is another government guaranteed investment option with 124 months, i.e. 10 year 4 months tenure to double the money. Currently, one can invest in KVP solely or jointly.

National Savings Certificate

There are two term period options available in the National Savings Certificates. One is five years and the other is 10 years. Certificates under VIII issue mature in five years while the certificates under IX issue will mature in 10 years.

Sukanya Samriddhi Yojona

If you have a girl child, then SSY is the best option for her. One can invest up to the age of 15 years of the girl child and get assured return at the age of 21 years of age. The interest rate is 7.6% pa.

Equity market

Investment in equity market is another option. One can invest in equity market as long as he/she wishes to invest. The risk is higher, and the return is variable. One can invest for a period of 45-50 years, or even more, in equity markets.

Expert’s take

Settling for the long term in making investments is extremely significant. It depends upon individual risk appetite and multiple other factors.

“The fruits of long term investment are often used in child’s marriage, for picking up expenditure in retirement life, buying a new house or for child’s higher education. So people should plan well and invest accordingly. Else they might have face difficulties in future,” said Nilotpal Banerjee, a personal finance expert from Kolkata.