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Long term investments can offer you with several benefits. In case of fixed deposits in banks, you can enjoy the compounded interest in most of the cases. Some of the investments in mutual fund can be even tax-efficient in nature. When the investments are generally done for more than 3 years, they are known as the long term investments. Now, let us discuss about the best financial investments which is suitable for 2016.
Fixed Deposit: The most easy and common form of investment can be the fixed deposit plan. Though the terms and conditions are different for different banks, this form of investment can be considered as the best long term investment. It can provide a considerable amount of money at the time of the maturity. If you want to obtain good returns, you must invest in the public sector banks.
Equity Funds: For long term investments, mutual funds can be the best this year. As the equity funds can diversify their investments among various stocks in the stock market, they can easily make the most. You should always go with the funds which possesses an excellent track record with well diversified and well managed equities throughout the market. You must make an entry with an investment option of minimum of 5 years for gaining the long term profits. When you want to save tax simultaneously, you can go with the options including the tax benefits. Equity Linked Savings Scheme or the ELSS can help you in this situation. Similar to the normal equity funds, these scheme works but just an exception is that it possesses a lock-in period of 3 years. Up to the invested amount of Rs. 1.5 lakhs, the tax benefits can be availed by the investors and under section 10(D), the redemptions are also non-taxable.
ULIPs: You can select the asset market where both debts and equities can play a great role in your long term investments. The ups and downs within your portfolio can be tracked properly with the Net Asset Value (NAV). This value is generally published to the investors at a regular interval. The redemption and the purchases within the ULIP (Unit Linked Insurance Plans) scheme remains at NAV including the load, if applicable. The investors who are looking for the high risk long term investments, they can surely go with the ULIPs. As they have varied choices of options, you can select the most ideal plan according to your profile as well as objective. Under Section 80 C,
