Best long term investments for 2013


Best long term investments for 2013

Overview – Best long term investments for 2013

While short term investments provide money for pressing needs in near future, every investor need to invest in best long term investments to create wealth and be financially independent. Today we would focus on the long term investments which are good to invest for 2013.

What are long term investments?

In legal point of view, any investment for more than 12 months is termed as long term investment. However from investment point of view, any investment which is more than 5 years is termed as long term investment. Investments grow over the longer period, hence investing in good long term investments creates wealth.  

Does long term investment strategy would be same for all investors

No. Investment strategy would be different and would depend on age group of the investor. For e.g. a good long term investment option for young investor may not be suitable for a middle aged investor.

Best long term investment options for various types of investors

There are various groups of investors.

  1. Early investor
  2. Young investor
  3. Middle-aged investor
  4. Wise-aged investor

Let us study the investment options suitable for these group of investors

Early investor

An early investor has just started earning and do not have appetite to earn extra money from his investments. His risk taking is low, liquidity is also low and expectation from income through his investments is also low.

Best long term investments for early investors


  1. Investments in stocks: Early investor can invest in large cap stocks for long term investments. Since large cap stocks provide little downside, the risk is low. Over a long term, large cap stocks provide good returns. You can get tips on how to research a stock for good long term investments.
  2. Investing in mutual funds: Early investor can invest in large cap mutual funds for long term. There are various best mutual funds where an early bird investor can invest. Investing monthly through Systematic Investment Plan (SIP) would be a good option.
  3. Investment in gold: Gold has provided annualized returns of more than 22% over the last few years, hence investment in gold would be a good option for long term. There are various ways to invest in gold.

Young investor (Aggressive)

A young investor would be earning money and is in process of creating wealth for future needs. His risk taking is high, liquidity is low and expectation from income through his investments is also low.

Best long term investments for young investor (aggressive).

  1. Investments in stocks: Young investor can invest in large cap stocks and mid-cap stocks for long term investments. Though large cap stocks provide good returns in long term, mid-cap stocks would multiply the investments over the long term. Refer how to research a stock for long term investment article and identify good large and mid-cap stocks.
  2. Investing in mutual funds: A young investor can invest large cap mutual funds & diversified mutual funds for long term. Investing monthly through Systematic Investment Plan (SIP) (monthly investment) would be a good option.
  3. Real estate: Investment in real estate property would create good wealth in long term.
  4. Investment in gold: As indicate earlier, gold has provided annualized returns of more than 22% over the last few years; hence investment in gold would be a good option for long term. There are various options to invest in gold.

Middle-aged moderate investor

A middle-aged investor is earning money, need to take care of family needs, children education and has to create wealth for future. His risk taking is low, liquidity is low and expectation from income through his investments is low at this moment.

Best long term investments for Middle-aged moderate investor

  1. Investments in stocks: Such investor can invest in large cap stocks for long term investments. Investment in mid-cap stocks would be little risky for this class of investor. Refer how to research a stock for long term investment article and identify good large cap stocks.
  2. Investing in mutual funds: A middle-aged investor too can invest large cap mutual funds & diversified mutual funds for long term.
  3. Real estate: Investment in real estate property would create good wealth in the long term. However by this time, the investment in real estate should have already been started and should continue.
  4. Investment in gold: Gold has provided annualized returns of more than 22% over the last few years; hence investment in gold would be a good option for long term.

Wise-old investor

An old investor is one where there are no earnings, but medical expenses increasing and need to take care of daily needs at home. His risk taking is low, liquidity is high and expectation from income through his investments is also very high.

Best long term investments for wise old investor

  1. Investing in mutual funds: A wise old investor can invest in debt mutual funds which provide constant fixed income which are higher than the bank fixed deposits. They can adopt SWP (Systematic withdrawal plan) where the investment would get withdrawn over a period of time thereby benefitting by investment in mutual funds.
  2. Investing in bank fixed deposits: Such senior citizen investors can invest in bank fixed deposits as banks offer higher interest rates for them.

Conclusion: Long term investment options would not be same for all groups of investors. It depends upon the risk, liquidity and dependency on getting income from investments. Invest in these long term investment options and create wealth.

Readers, are you investing in such best long term investments? Please give your comments

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Suresh
Best long term investments


Article by Suresh

Suresh KP i.e. me have written 400+ articles on this blog. I love doing analysis and identifying the Best investment options.

2 Comments

  1. sheikhakkani says:

    hi suresh,

    greetings, i read your articles in http://www.myinvestmentideas.com, i am also willing to invest in mutual funds, but i am having 0% knowledge in mutual funds, but i want to save much amount through savings. please guide me.,

    • Suresh says:

      Hi Sheik, To start with, open a mutual fund account with a broker like fundsindia.com or ICICI direct.com  etc., Start investing in debt mutual funds or balanced mutual funds to start with. Once you are familirized invest in diverified mutual funds or large cap stocks etc.,

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