5 Best Long-term Investments
High returns and low risk, every investor out there is always looking for an asset with this rare combination. All they wish for is the best investment plan that can double their money in a few months or years with little or no risk.
But, only the firms who care for your needs will tell you that this utopian state of high returns with zero risk is almost impossible to attain. In reality, the higher the risk, the higher the possibility of bankable returns would be. Long term investments offset the risk by banking on better returns in the long run.
Moreover, there are several factors associated with investment planning that stipulate the returns one can earn, guarantee the security of your investments and what the long term benefits one might enjoy. One must consider their goals before starting with any investment opportunity.
Be it a short term or a long term goal, be it for monthly returns or just facilitate tax savings, here are the 5 best long term investments options you have in the current year:
Since it’s a volatile asset class, investing in stocks might not be everyone’s cup of tea especially when there are no guarantees of returns. Investors need to be on their toes while picking the right stocks, timing of their entry and exit to gain desired returns. But the silver lining here is, over long periods of time, equity investments are shown to deliver higher than inflation-adjusted returns compared to all other asset classes.
When investing in stocks, one must opt for the stop-loss method to reduce losses. In stop-loss, one places an advance order to sell a stock at a specific price. To lower the risks further, one could diversify across sectors and market capitalisations.
When it comes to mutual funds, even expert investors face conundrums. At one hand they are risky and on the other hand the higher returns are advantageous. Mutual funds often turn out to be a great investment option for the ones who don’t have required experience and expertise about the market yet wish to get higher returns.
The market-related investments put money in various financial instruments such as debt, equity, stocks, money market funds, etc., wherein the returns are generated as per the market performance of the fund.
Fixed Deposits are one of the oldest investment method. The deposits are made with banks, with the guarantee of offering fixed returns over a fixed period of time. The tenure of an FD varies from 7 to 10 years and is a great option especially for tax saving purposes. However, individuals can also choose from available tax-saver fixed deposits available for a fixed period of 5 to 10 years . Fixed deposits are a highly lucrative investment option for investors looking for guaranteed returns, conservative investors with no to low risk appetite and investors seeking investment options with flexible tenure.
An all-time favorite investment product, one can invest in gold in any format – Gold bar, Gold ETF, gold mutual fund, gold deposit scheme etc. Possessing gold in the form of jewellery has its own concerns such as safety and high cost. Then there's the 'making charges', which typically range between 6-14 percent of the cost of gold (and may go as high as 25 percent in case of special designs). For those who would want to buy gold coins, there's still an option.
Many banks sell gold coins now-a-days. An alternate way of owning gold is via paper gold. Investment in paper gold is more cost-effective and can be done through gold .
It’s high time a house built for one’s own living, shouldn’t be called an investment. A second house though qualifies to be an investment but the returns are extremely low as compared to commercial real estate investments(CRE). Even when market cycles fluctuate for one reason or another, CRE remains a desirable investment thanks to its stable nature.
Investments in real estate deliver returns in two ways - capital appreciation and rentals. In this respect, CRE can not only provide solid, predictable returns but also a steady cash flow generally distributed annually, quarterly or even monthly. That’s because high occupancies and predictable rents often provide the steady cash flow that most investors are looking for.
Strata offers a one of a kind opportunity to create a diversified portfolio in commercial real estate. With data-driven insights and reasonable ticket sizes, Strata offers investment opportunities in Grade A commercial properties with a few clicks. Strata’s fractional investment model can not only help investors receive regular monthly rentals but also gain long-term capital appreciation.
To make smart investment decisions, one must always have an in-depth knowledge of the available opportunities with a strict focus on the financial objective, time period and risk level. After all, a good investment is all about risk management and a whole lot of patience.