A Few Great Long-Term Investment Ideas In India

Here are a few great long term investment ideas, where you can invest from your monthly salary.

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 It is always a good idea to remove some amount from your salary towards saving and then spend the remaining. It is a bad idea to spend first and then save. We have selected a few shares, FDs, mutual funds and a gold scheme from where you could invest your money. Let us take a look at some places you could invest and these are some best long term investment ideas. Take a look:

Infosys

Infosys shares hit a new 52-week low of Rs 992, as  there is some serious selling pressure in IT stocks. There are worries that Donald Trump could become the next US President and there could be fresh worries on H1-B Visas. However, Donald Trump has frequently flip-flopped on the issue and his stand is still unclear. Infosys recently also cut its revenue guidance for 2016-17, which was another worry. However, let us see if the stock is worth buying at these levels. In fact, there is no harm, if you invest a little amount each month from your salary to build a portfolio. Let us see why.

Why you should buy the Infosys stock?

There is no other stock from the Sensex companies that has created more wealth for shareholders than Infosys in the last few decades. In the past too there have been concerns and the company and the stock have bounced back. Coming to fundamentals, the company reported numbers that lagged estimates. Infosys also cut its revenue guidance, but, it has always been a very conservative company. We believe that the company can report an EPS of at least Rs 60 for 20161-17. This makes the p/e just about 15 times one year forward earnings. One should not forget that the dividend yield on the stock is a decent 3 per cent. Infosys is a great long term investment idea.

Check stock quote of Infosys here

Dewan Housing

Dewan Housing Finance (DHFL) is a good place to park your money as banks are giving you slightly over 7 per cent FD interest rates. 

If you place the money for one-year in Dewan Housing FDs, you get an interest rate of 8.25 per cent. A two-year FD in DHFL offers you an interest rate of 8.50 per cent, whereas the 3-year FD gives you an interest rate of 8.60 per cent. This is a good 1-1.5 per cent or 100 to 150 basis points higher than what most banks in the country offer. It is also among the highest interest rate on FDs, from quality companies. Senior citizens are entitled to an extra 0.25 per cent interest rate.

 

A few important things to note

It is important to remember before investing in the DHFL Fd, if you have an interest income of more than Rs 5,000, there would be a TDS that is applicable. Another important thing to remember is that while banks deposits are protected to a certain extent by the Deposit insurance scheme, company FDs are unsecure deposits. This means they are risky. So, you need to invest only in AAA rated deposits. DHFL is a AAA rated deposit.

Mutual Fund Idea

Midcaps are now a darling of mutual fund investors. If you are looking at investing in midcaps through the mutual fund route, Mirae Asset Emerging Bluechip Fund - Regular is not a bad idea. The fund has given a return of 26 per cent in the last one year and a 3-year returns of 42 per cent on an average each year. Where do you get returns like this? The fund has been rated No 1 by Crisil in the small and mid cap category. It also has a solid strong portfolio as well. 

Invest in small amounts

It is extremely difficult to get returns like 42 per cent every year. You can invest in the fund through a small SIP of as little as Rs 1,000 every month, be it your November or December salary or Jan salary. The fund has holdings in some blue chips like IndusInd Bank, HPCL and Kotak Mahindra Bank. These leave even further room for upside in the scheme of Mirae Asset Emerging Bluechip Fund - Regular. The NAV of the fund under the growth plan is Rs 39.09 and under the dividend plan is Rs 25.52. Not a bad investment idea in India for the long term.

Gold scheme

If you are looking to invest in a gold scheme through monthly investment schemes, go for gold schemes from jewelers. The GRT Golden Eleven Flexi Plan is not a bad proposition. if you invest through monthly amounts as small as Rs 500, you can build a corpus and buy jewelry at a later stage.

Details of the scheme

You can invest in the GRT Gold Scheme with amount as low as Rs 500. You can make payments for 11 months in equal installments. All After making the advance payment for the last month, an investor buy your favorite jewellery, except special items.

Disclaimer

The article is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article.

 

 

Read more about: investment
Story first published: Wednesday, November 2, 2016, 5:27 [IST]
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