Investment Tips: If you want to provide financial security to your family, then invest for the long term. In today’s time, there are many such schemes in which you can easily accumulate lakhs or even crores of rupees by investing for a long time.
Investment Tips: Most of the world’s rich and successful business investors say that if you want to provide financial security to your family, then invest for the long term. In today’s time, there are many such schemes in which you can easily accumulate lakhs or even crores of rupees by investing for a long time. The benefit of compounding interest is available in these schemes. This is a very successful mantra in terms of wealth creation. Let us tell you about those schemes in which you can easily create wealth by investing for a long time.
Public Provident Fund
Any Indian citizen can invest in Public Provident Fund. It is considered an old and safe means of saving tax and investing. You get the benefit of compounding in long term investment in PPF. At present interest on PPF is up to 7.1 percent. Investment in PPF can be made for 15 years and can also be extended further in blocks of 5 years. A maximum of Rs 1.5 lakh can be invested annually in this scheme. If you invest Rs 1.5 lakh i.e. Rs 12500 per month in this scheme every year, then you can add Rs 1,03,08,015 in 25 years at 7.1 percent interest. The amount received on maturity is completely tax free.
Mutual funds
In terms of wealth creation, mutual funds can also prove to be a better option. You can invest in mutual funds through Systematic Investment Plan (SIP). By investing for a long time, you can add a lot of money through this. SIP is a great option for investors who do not want to take much risk in the market. The estimated annual return on SIP is considered to be up to 12 percent. Sometimes it can be found up to 14 and 15 percent also. If you run SIP of Rs 10,000 per month for 21 years, then at 12 percent return you can add up to Rs 1,13,86,742.
You can also invest in stocks
Investing directly in stocks also proves to be very beneficial in terms of wealth creation. Money can be made very fast through the stock market. But for this it is very important to have a better understanding of the market. Investing in someone’s words can cost you dearly. Assess yourself how much market risk you can take, only then decide to invest in the market. American investor Warren Buffett says that one should not keep all one’s eggs in one basket and the same formula should be applied to investments as well. Whatever investable money you have, you should divide it into debt, equity, gold etc.
Buffett also recommends long-term investing. He says that after buying shares, instead of selling them within a day or in a very short time, it is better to buy stocks of good companies and then keep your investment in them for a long time. If a company is making good quality products or providing excellent service to its customers, then you can think about investing in it. Apart from this, it is better to buy shares of a good company at reasonable prices rather than buying shares of a good company at a fantastic price.
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