Wednesday, 24 November 2010

Safest Investment Options

All of us need money and we are making money with our work or business. Anyway we make it with much difficulty. We know the value of money and also know the necessity of making money. But we are not ready to make money in illegal ways. Yes we wish to make money legally and also wish to lead a peaceful life. As we know there are so many ways to make money and grow our money. Some of them are risky such as stock trading, forex trading etc. Such investments need more care and attention. You must take more time to learn and analyses the financial products. Here I am sharing with you some safest methods to make money. No doubt those are not making you rich quickly. But provides a steady growth of your money and you should not spend much time on them to watch those investments. Most of them will grow automatically.

Public Provident Fund (PPF)

This is an interesting investment option. One can start a PPF account with a post office or with some nationalized banks. The scheme offers 8% tax free interest. One can start this investment with a deposit of Rs. 500 and can invest a maximum amount up to Rs. 70000 in a year. The main disadvantages of this investment are you can close the account only after completing 15 years. But you can withdraw half of the investment proceeding 2 years, after 6th year onwards. Only one withdrawal is allowed in a year.  For retirement and long term goals this is a good and safest investment option. Read more about PPF

Post Office Monthly Income Scheme (POMIS)

Post Office Monthly Income Scheme is also a good investment option that one can invest up to Rs 6 Lakh and can earn 8% interest and the interest is disbursed in monthly basis. If you do not need monthly interest you can start a recurring deposit in the same post office and can allow them to deposit the monthly interest in the recurring deposit. Then you can fetch a total interest up to 10%. The investment is for 6 years, but there you can withdraw after 1 year with some penalty. If you withdraw only after the maturity you can earn additional 5% Bonus. Read more about Post office Monthly Income Scheme.

Company Fixed Deposits

Companies also invite fixed deposits and can invest in those schemes to get a good income and these deposits also do not affect the market fluctuations. The benefit of companies that they can collect money less than bank lending rate and the investor can earn more interest than banks deposit. If you give some attention you can earn around 11% to 12 % interest from reputed companies. Read more about company fixed deposits

Post Office time deposits

Post office time deposit is a good investment option for those who wish to deposit money for a short period such as one year or more and can earn interest as per the time period of deposit. It is just like fixed deposit in banks. Read more about Post office Time Deposit.

Debt Mutual Funds

Mutual funds are good option to invest in money market instruments. These debt mutual funds are funds accumulated from investors and invest in safe investment schemes and money market instruments to fetch more income. This is more benefit full because the money is managed by well experienced fund managers. So they can make more than individual investors.  In the last 3 years 5 good debt mutual funds made an average return of 10 % to 14%. Read more about Mutual Funds

Post office recurring deposit schemes

One can open a post office recurring deposit with a minimum monthly investment of Rs. 10 and there is no maximum limit and can earn 7.5% interest. The time period is 5 years and early withdrawal is allowed. You will get discounts in deposit if you deposit half yearly or yearly.

All the above options are safe and good investment option those who does not like to bear risk and market fluctuations. One of the main advantages of the above mentioned post office investment schemes, there is no TDS deducted from the income. But all are taxable except PPF. In Company fixed deposit TDS will be deducted, if the interest is more than Rs. 5000. If you wisely distribute the amount in various companies you can avoid TDS. With all the above options you can play with your money safely.

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Claris Lifesciences Limited issues IPO
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  2. [...] solving this problem ICICI Bank came with a flexible recurring deposit scheme named “iWish” for its savings bank account holders. This is the first time in India in [...]