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Tata Capital > Blog > Loan for Home > Smart Long-Term Investment Options for 2023

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Smart Long-Term Investment Options for 2023

Smart Long-Term Investment Options for 2023

When investing for the long run, one needs to be patient as the true returns are only realised after some time. However, there are several upsides to investing your money for an extended duration: 

  • You pay less money in taxes
  • The investments are low risk and high return
  • They don’t require constant high engagement like share trading
  • You’re assured of financial independence post-retirement

An investment made for at least 5 years can be considered a long-term one. They are predominantly made for the following reasons:

  • Buying a house
  • Funding children’s education
  • Paying for children’s marriage
  • Building a retirement corpus

While there are many instruments available for making long-term investments, there are some top plans that offer the benefit of wealth accrual along with the benefits of high market returns in India. Let’s take a look at the top long-term investment plans in India in 2023.

Public Provident Fund

This is one of the most common long term-investment instruments in India. The PPF account assures an annual tax-free investment of Rs. 1,50,000 for every citizen of the country. It is a safe and tax-efficient tool. There is an assurance of a fixed amount of return with zero risks. In case of an emergency, a partial withdrawal, after the initial lock-in period of 5 years can be made.


Presently, the rate of gold has shot up to almost Rs. 41,000 per 10 grams. Gold is an appreciating long-term investment and Indians have been investing in gold since time immemorial. It is a traditional but successful way of accruing wealth in the long run. Gold jewellery is one of the most common ways of investing in this asset. But, one can also invest in gold through Gold ETFs, Sovereign Gold Bonds, Gold Deposit Schemes, Gold Mutual Funds, etc.

Real Estate

Instead of paying monthly rentals, get a home loan and create true lifelong wealth for yourself and your family. It is a good idea to invest savings in the real estate sector in 2023, given that the market is at a low presently. Apart from investing in purchasing a home, one can also look at other property investment options. As real estate is an appreciating asset, buying more than one property is a good idea for generating long-term disposable income.

Additional Read:- 5 Reasons Home Loans are Going to be Big in 2020

Mutual Funds

Mutual funds are a good long-term investment as they offer attractive rates of return with a lower risk than investing in the stock market. They are available for people with both high and low-risk appetites. There are 3 broad categories of mutual funds:

  • Debt Mutual Funds which invest in fixed income securities like government bonds, corporate bonds, etc.
  • Equity Mutual Funds which invest in stocks and shares
  • Balanced Mutual Funds which invest partially in stocks and partially in fixed income securities

If you have a stomach for high risk, then investing long-term in an equity mutual fund will give you the highest returns. If you are a low-risk taker, then investing in a debt mutual fund will appeal more. If you are somewhere in the middle, then investing in balanced mutual funds might be the answer for you. 

Government Bonds

These are bonds issued by the Government of India that pay a periodic interest amount, also called coupon payments, on the invested principal. For example, the National Savings Certificate is a type of government bond that currently pays its holder an interest rate of 7.9%. One can avail a tax benefit of up to Rs. 1,50,000 at the time of investing in this instrument under section 80C of the ITA.

Additional Read:- Top Trends in Home Loan Industry

Final Thoughts

Individuals need to have cash beforehand for investing in instruments such as the PPF, MF, gold bonds and government bonds, whereas investing in real estate only requires one to have a stable income. Availing housing finance also provides home loan tax benefits. Invest in real estate by approaching Tata Capital for a housing loan. Visit our website and use the free home loan calculator or home loan EMI calculator to figure your home loan eligibility. Our EMI calculator for home loan can help you avail of our competitive home loan interest rates.

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