The act of devoting time, mind, energy, resources into sometime with an expectation a return is called an investment. In business context it is putting in money and resources in expectation of a profit. There are investment for short term and long term as well.
The best options to invest money for a long term are as follows:
Mutual funds investment: Mutual funds are the investment which have become popular recently and in this type of investment the company investing takes in money from the investors and pools them to invest them in stocks and thus all the people are entitled to dividends in the profit but this is less risky as when the market takes a hit the loss is shared by all the investors. The returns are a varied as per the performance of the stocks in the market. It is a very good option for long term investment as long term mutual funds give good returns.
Investment in the Real Estate Industry: The real estate is generally an asset in terms of land or developed property along with the trees, minerals and things on that land. The business of buying, selling renting land, buildings or the house is also called real estate.
The real estate industry is a very profitable one to invest money for a long term and in India it is really profitable as they have a return ranging from 30%- 100% annually but to get that one has to carefully research the market trends before investing
Investment in gold: Investing in gold is a very smart option if someone is going for long term investment with good returns. It is an investment in which there is no problem regarding liquidity. In terms of deposit of more than 10-15 years then it is sure to give good returns.
Public Provident Fund: This is a type of investment in which sum is invested and locked for 15 years and earns compound interest. The liquidity is a problem as there is option to partially withdraw your investment after 6 years. The investment is tax free.
Fixed Deposit: A fixed deposit is an investment option that the banks provide, in which the investors are offered a higher interest rate than the regular savings account provides till the date of maturity. This type of deposit need not require any creation of a new account. The returns as usually are pretty good for a long term.
Post Office Saving Schemes: Post Office Saving Schemes are famous for their high returns and the monthly wage scheme is very good for the retired personnel. Apart from that the post office offers many profitable schemes like Kisaan Vikas Patr, National Saving Schemes, National Saving certificates which are very good options for long term investments.
Investment in IPOs: IPOs are the Initial Public Offering and these are made available by the company only once and are more risky than regular shares as there have been no performance records of the stocks of the company. To invest in these is a risky but good option for a long term investment but one should invest only after researching about the company.
Investment in shares: Investment in shares is a very good option if investment is done after careful study of the market and the stocks being purchased. It is recommended that sudden selling and purchasing of the stocks should not be done and it is sure to give returns.
Recurring deposits: A Recurring Deposit is a specific type of investment which is offered by the banks. In this investment the investor if he can, deposits a definite sum of money after every regular intervals to in turn get good return on their investment.
Investment in Bonds: if the mutual funds as well as the shares are not suitable to the investor then he can opt for investment in bonds. There are government bonds with more than 7% interest rate annually which is bound to give good returns.