Certain tried and tested instruments of long-term investment lead to diversity in the assets you have invested in as well as greater returns on the money that is invested. Investing in long-term schemes and assets can lead to rates of return, as high as 400 per cent in one year. From investing for your newly-born daughter to having a stable flow of money after your retirement, given below are long-term schemes and assets that give promising rates of return.

1. Public Provident Fund (PPF)

PPFs are long-term investment schemes that offer risk-free high rates of interest, up to 7.1 per cent per annum, on the money invested. The return on PPF accounts is tax exempted as long as the money deposited in these accounts is not more than INR 1,50,000 per annum. Since PPFs are backed by the Government of India, they offer risk-free returns as well as complete capital protection. The minimum tenure of PPFs is 15 years.

2. Sukanya Samriddhi Yojana (SSY)

SSY is a savings scheme that was launched in 2015 as part of the Government Of India’s initiative Beti Bachao, Beti Padhao campaign. This scheme allows parents and guardians of girls who are of less than 10 years of age to open savings accounts that offer up to 8.4 per cent interest rate. Deposits in this account can be made till the girl completes 14 years of age and the account shall mature on completion of 21 years from the date of opening of the account.

3. National Pension System (NPS)

National Pension Scheme (NPS) is a voluntary and long-term investment plan for retirement under the purview of the Pension Fund Regulatory and Development Authority (PFRDA) and Central Government. This scheme enables people from public, private and even unorganised sectors to invest in a pension account at regular intervals during the course of their employment. After retirement, NPS account holders can take out a certain percentage of the money they deposited when they were employed and receive the remaining amount as monthly pension post retirement.

4. Fixed Deposits

An FD is a long-term investment instrument offered by banks and non-banking financial institutions (NBFC) that allows individuals to deposit funds for a fixed period of time and get a higher rate of interest than a regular savings account. As per current tax laws an individual can claim a tax deduction for investments in tax saving fixed deposits of up to Rs.1.5 lakh. Banks and NBFCs offer tax saving FDs that allow investments to save tax under section 80C of the Income Tax Act. The minimum tenure for a term deposit under Tax Saving Scheme is 5 years. Interest rates on tax-saving FDs can go up to 6.75 per cent for the regular public and 7.25 per cent for senior citizens.

5. Senior Citizen Savings Scheme (SCSS)

SCSS is a fixed income investment option for people above the age of 60 years. SCSS offers an interest rate of 7.4 per cent per annum. The objective of this scheme is to help senior citizens get a regular flow of income. This government-backed scheme ensures guaranteed returns on a quarterly basis.

6. Equity Linked Savings Scheme (ELSS)

An ELSS is a scheme that allows an individual or Hindu Undivided Families (HUF) to invest a major portion of their corpus into equity or equity-related instruments.. ELSS is the only kind of mutual funds eligible for tax deductions under the provisions of Section 80C of the Income Tax Act, 1961. ELSSs come with a lock-in period of three years, with no provisions to make a premature exit. ELSS funds are subject to market risk and the funds do not provide guaranteed returns. However, investing in ELSS for more than 5 years can provide higher returns than any other tax-saving investment option, with return on investment going as high as 16.61 per cent.

7. Equity Shares

Equity shareholders are entitled to the residual income of the company and are collectively owners of the company whose shares they buy. These shares are easy to liquidise and sell in the market. Investing in the correct share at the right time can give you up to 400 per cent profit within a year. In case of high profit, the shareholders also get a high dividend. Equity shares are suitable for short-term as well as long-term investments. Mostly, blue chip stocks are thought of as ideal for long term investment. The risk involved in equity is often outshined by the high return on investment they promise to offer.

8. Commercial Real Estate

When it comes to buying real estate for investment purposes one should always invest in commercial real estate. Commercial property gives higher rental income than residential property. This is due to the increasing demand for office space with the growth of the corporate environment. The location of the property, condition of the building, market space rent and the demand-supply are some major factors that decide returns. An investment in commercial property leads to diversification of investment assets and gives higher returns on investment. An investment in the correct commercial property could result in a return of 13 per cent per year and double the price of the property in approximately 6 years.

9. Gold

Investing in gold gives consistent returns of around 10%, beating inflation and providing diversification. Apart from buying gold in physical, you can also buy Gold mutual fund, Gold ETF and Gold bonds. The Sovereign Gold Bond Scheme regulated by the Government of India and RBI gives you gold in ‘certificate’ format allowing individuals to invest in gold without the strain of safekeeping their physical asset. The minimum initial investment required to invest in gold is 1 gram that currently costs approximately INR 5086 in New Delhi.

10. Unit Linked Insurance Plans (ULIPs)

A Unit Linked Insurance Plan (ULIP) is a multi-faceted instrument issued by insurance companies that combines insurance coverage and investment exposure in a single offering. ULIPs can be utilised for benefit payouts such as life insurance, retirement income and education expenses.

11. Bonds

Bonds are debt instruments, secured forms of debentures used by private corporations and by governments. The investor lends a sum of money in exchange of a guarantee of re-payment at a specified maturity rate. Investors also get periodic interest payments over the duration of the bond's term on a monthly, quarterly or yearly basis. Unlike debentures, bonds are secured and are considered safe.