If you’re planning for your future, whether it’s a comfortable retirement, your child’s education, or financial independence, long-term investing is the way to go. The longer your money stays invested, the more time it has to grow through the power of compounding.
But with so many investment plans available in the market, how do you know which ones are best suited for the long haul?
In this guide, we explore the top long term investment plans in India for 2025, tailored to help you build wealth steadily, securely, and strategically.
Why Choose Long Term Investment Plans?
Long term investment plans are designed for a period of five years or more and are ideal for:
- Beating inflation
- Building wealth gradually
- Achieving life goals like retirement, home buying, or children’s education
- Generating passive income in later years
Unlike short-term instruments, these plans reward patience and consistency over time, often delivering superior returns with lower overall risk.
1. Mutual Fund SIPs (Systematic Investment Plans)
- Returns: 10%–15% (equity funds, historically)
- Risk: Moderate to high
- Liquidity: High
- Taxation: LTCG tax at 10% above ₹1 lakh gains/year
- Ideal for: Wealth creation, retirement planning, education goals
Why it’s a top pick in 2025: SIPs allow disciplined investing with flexibility. You can start with as little as ₹500/month and choose between equity, hybrid, or debt funds based on your risk appetite.
2. Public Provident Fund (PPF)
- Returns: ~7.1% (as of 2025, government-set)
- Risk: Nil – backed by the Government of India
- Lock-in: 15 years
- Tax Benefits: EEE (Exempt-Exempt-Exempt) under Section 80C
- Ideal for: Retirement savings, conservative investors
Why it’s a top pick in 2025: One of the safest and most tax-efficient instruments. Perfect for investors who want guaranteed, long-term returns with no market risk.
3. National Pension System (NPS)
- Returns: 8%–10% (market-linked)
- Risk: Low to moderate
- Lock-in: Till age 60
- Tax Benefits: Additional ₹50,000 deduction under Section 80CCD(1B)
- Ideal for: Retirement planning
Why it’s a top pick in 2025: NPS offers customisable asset allocation, low fund management fees, and additional tax savings. A powerful tool for salaried professionals and self-employed individuals alike.
4. Unit Linked Insurance Plans (ULIPs)
- Returns: 6%–12% (based on fund performance)
- Risk: Moderate – market-linked
- Lock-in: 5 years (ideally held for 10+ years)
- Tax Benefits: Section 80C; tax-free maturity under Section 10(10D)*
- Ideal for: Investors looking for both insurance and investment
Why it’s a top pick in 2025: New-age ULIPs come with flexible fund-switching options, low charges, and long-term benefits. Best suited for goal-based investors who also want life cover.
5. Real Estate (Long-Term Holding)
- Returns: Varies (6%–12%+ via appreciation + rental income)
- Risk: Moderate to high
- Liquidity: Low
- Tax Benefits: Sections 24(b) and 80C for home loans
- Ideal for: Long-term asset building, income from rent
Why it’s a top pick in 2025: Despite being capital-intensive, real estate remains a popular choice for long-term wealth creation, especially in Tier-2 and Tier-3 cities witnessing rapid growth.
6. Child Investment Plans
- Returns: Depends on plan type (ULIP, endowment, mutual funds)
- Risk: Low to moderate
- Lock-in: Usually until child turns 18
- Tax Benefits: Section 80C
- Ideal for: Parents planning for school fees, college, or marriage expenses
Why it’s a top pick in 2025: With rising education costs, a dedicated child plan ensures that your savings are goal-linked and protected, even if something happens to you.
7. Endowment Plans and Guaranteed Income Plans
- Returns: 4%–6% (guaranteed + bonus)
- Risk: Very low
- Lock-in: Long term (10–30 years)
- Tax Benefits: Section 80C and tax-free maturity
- Ideal for: Risk-averse investors seeking predictability
Why it’s a top pick in 2025: In a world of market ups and downs, these plans offer stable, contractually guaranteed returns, making them ideal for conservative savers and retirees.
8. Senior Citizen Savings Scheme (SCSS) (For post-retirement)
- Returns: ~8.2% (as of 2025)
- Tenure: 5 years (extendable)
- Risk: Very low
- Eligibility: 60+ years of age
- Taxation: Interest is taxable; no TDS if under threshold
- Ideal for: Income generation after retirement
Why it’s a top pick in 2025: This is one of the highest-yielding fixed-income options available to seniors. Perfect for creating a monthly income stream with low risk.
How to Choose the Right Long Term Investment Plan
Before investing, ask yourself:
- What is my goal, wealth, income, or protection?
- How many years do I have to invest?
- Am I willing to accept some volatility for higher returns?
- Do I need life insurance as part of the plan?
- How important is tax saving for me?
You don’t need to pick just one. In fact, a diversified approach is best. Combine mutual fund SIPs, PPF, and NPS for growth, safety, and tax benefits. Add ULIPs or endowment plans for protection and structure.
Final Thoughts
2025 offers Indian investors a rich mix of long term investment plans, each with its own strengths. Whether you’re a young professional starting your journey or a seasoned investor planning retirement, there’s a plan that fits your financial personality and goals.
The key is to start early, stay consistent, and stay invested, because long-term wealth isn’t about timing the market, but time in the market. With the right choices today, your future can be as rewarding as you dream it to be.