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A

Project report on

“Personal Finance”

Summer internship report submitted to the University of

Mumbai

In partial fulfillment for the award of degree

Of

Master of Management Studies

SUBMITTED BY

Miss. Kamtam Sandhya Rajaram

Roll no; 6068

Project guide

Prof. Pawan Jain

Batch: 2015-2017

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ACKNOWLEDGMENT

The success and final outcome of this project required a lot of guidance and assistance from many people and I am extremely fortunate to have got this all along the completion of my project work. Whatever I have done is only due to such guidance and assistance and I would not forget to thank them.

I respect and thank Mr. Novello Dsouza For giving me an opportunity to do the project work in Accupack Engineering Pvt,ltd and providing us all support and guidance which made me completes the project on time. I am extremely grateful to him for providing such a nice support and guidance though he had busy schedule managing the company affairs.

I owe my profound gratitude to our project guide Prof. Pawan Jain who took keen interest on our project work and guided us all along, till the completion of our project work by providing all the necessary information for developing a good system.

I am thankful to and fortunate enough to get constant encouragement, support and guidance from all Teaching staffs of finance department which helped us in successfully completing our project work. Also, I would like to extend our sincere regards to all the non-teaching staff of finance department of their timely support.

Kamtam Sandhya Rajaram

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EXECUTIVE SUMMARY

Investing money where the risk is less has always been risky to decide. The first factor, which an investor would like to see before investing, is risk factor.

The personal finance is in the growing stage in India, which is evident from the high risk with high returns, less risk and low returns offered by the Banks, Financial Institutes & Private Financial Companies.

As a part of my study curriculum it is necessary to conduct a grand project. It provides me an opportunity to understand the particular topic in depth and which leads to that topic.

My Project topic is “personal finance” which gives special emphasis on creation of investment in various sectors and various performance measures.

In personal finance it is very important to manage individual investment. By efficient we mean which reduces the risk of investor and increases return on the other hand.

This project is all about how to manage fund in different sectors of investing with high returns. How to diversify the investments into different schemes of fund.

My topic covers introduction & history of personal finance, its importance, financial planning, areas of focus, alternative investments schemes like fixed deposits, recurring deposits, real estate, and mutual funds ...Etc. comparison of investments schemes with various performance measures.

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INDEX

SR.NO. PARTICULAR PAGE NO.

1. Introduction & History of Personal Finance 5 2. Advantages of personal finance 7 3. Personal financial planning process 9 4. Areas of focus 11 5. Insurance policies 13 6. Fixed deposit 22 7. Recurring deposits 31 8. Real estate 39 9. Mutual funds 46

10. Alternative investment in Precious Metals 52 11. 8 Attractive Tax Free Investment Schemes

in India 59

12. 8 Profitable Investment Ideas in India for Higher Returns

62

13. Conclusion 66 14. Bibliography 67

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Personal Finance

1. Introduction and History of Personal Finance

Personal Finance is the financial management which an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events. When planning personal finances, the individual would consider the suitability to his or her needs of a range of banking products or investment private equity, and insurance products or participation and monitoring of individual- or employer-sponsored retirement plan, social security benefits, and income tax management.

History Before a specialty in personal finance was developed, various disciplines which are closely related to it, such as family economics, and consumer economics were taught in various colleges as part of home economics for over 100 years. The earliest known research in personal finance was done in 1920 by Hazel kyrk. Her dissertation at University of Chicago laid the foundation of consumer economics and family economics. Margaret reid a professor of Home Economics at the same university, is recognized as one of the pioneers in the study of Consumer behaviour and Household behavior.In 1947, Herber A Simon, a nobel laureate, suggested that a decision maker did not always make the best financial decision because of limited educational resources and personal inclinations. In 2009, Dan Ariely suggested the 2008 Financial Crisis showed that human beings do not always make rational financial decisions, and the market is not necessarily self-regulating and corrective of any imbalances in the economy. Therefore, personal finance education is needed to help individual or family make rational financial decisions throughout their life. Before 1990, mainstream economists and business faculty paid little attention to personal finance. However, several American universities such as Brigham young

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university, Lowa State University, and San Francisco State University have started to offer financial educational programmes in both undergraduate and graduate programmes in the last 30 years. These institutions have published several works in journals such as "The Journal of Financial Counseling and Planning" and "Journal of Personal Finance". Research into personal finance is based on several theories such as Social exchange theory and Andragogy (adult learning theory). Professional bodies such as American Associatin of Family and Consumer Sciences and American Council on Consumer Interests started to play an important role in the development of this field from the 1950s to 1970s. The establishment of the Association for Financial Counseling and Planning Education (AFCPE) in 1984 at Iowa state university and the Academy of Financial Services (AFS) in 1985 marked an important milestone in personal finance history. Attendances of the two societies mainly come from faculty and graduates from business and home economics colleges. AFCPE has since offered several certifications for professionals in this field such as Accredited Financial Counselor (AFC) and certified Housing Counselors (CHC). Meanwhile, AFS cooperates with Certified Financial Planner (CFP Board).

As the concerns about consumers' financial capability have increased in recent years, a variety of education programs has emerged, catering to a broad audience or to a specific group of people such as youth and women. The educational programs are frequently known as "Financial literacy ". However, there was no standardized curriculum for personal finance education until post 2008 financial crisis. United States President’s advisory council on financial capability was set up in 2008 in order to encourage financial literacy among American people. It also stressed the importance of developing a standard in the field of financial education.

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2. Advantages of personal finance

Your personal finance knowledge, education, decisions and plans coupled with your goals, income and desire will all combine to define your wealth picture. Therein lies the importance of personal finance; the consistent management and improvement of your personal finances will see its impact not over the next couple of months but over the next couple of decades.

If you don’t get the importance of personal finance from early on this can seriously delay or prevent you from building wealth. The following areas provide ways for you to apply the importance of personal finance starting today:

Understand personal finance basics. Learning how to balance your cheque book, creating and tracking personal finance budgets, paying yourself first to create savings, investment and emergency funds. Learning how to use a credit card responsibly and understanding interest rates, fees and all the other sneaky tactics creditors use. Understanding financial products whether they are loans, investments or insurance. Knowing your net worth.

Getting a hold of these basic concepts surprisingly enough doesn’t come to many of us until later in life. Although many of these things should be taught at the high school level unfortunately they are not so it is up to you to seek this education out.

Importance of personal finance planning. In order to create wealth you create personal finance plans that are fueled by goals. Personal financial planning is made out to be complicated by some that get paid to do it for you. Although some financial planning aspects are best handled by experts there is no area of financial planning you can’t take on yourself. Whether you hire someone or not you will still have to remain in charge and this will require knowledge and the desire to seek that knowledge.

Understand the importance of personal finance on avoiding/eliminating debt. By keeping on top of your personal finance management you can avoid falling into the easy debt trap that is so rampant in our society. You can also use debt to your advantage and use it

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responsibly like you would for example, buying a house/car that you can afford.

You can then include in your personal finance plan your strategy to go from debt to wealth, so that you eliminate all debt from your life and create wealth. Knowing how to create and track personal finance budgets will be a big help in this area.

Pass it on. Teaching your children the importance of personal finance will get them started on the right track. Like I mentioned before, our schools do not do a good job teaching personal finance management skills. It is up to us as parents to take on this and the best way to do it is to lead by example.

As soon as your children start handling money you should start this. When you give your children money for completing a chore or when they get money for a special occasion you teach them to set some aside for savings and some for giving to charity. They also have a piggy bank in their rooms so they can start understanding how money accumulates. If they want to buy a toy they save money for it or we agree on a plan for them to earn it. And, we don’t buy at the store just because they ask for it.

As they age the same principles apply but the amounts get larger. Once the age is appropriate you walk them through savings and investing, credit cards and loans. Again, by you showing them how you have used these and walking them through it they will learn the importance of personal finance.

Understand the financial opportunities available to you today. Do you understand how that 401(k) or stock purchase plan your employer offers works? How a health savings account, disability insurance or mutual funds work?

Many of us have some of these resources available to us right now and don’t use them or use them to their full potential because we do not understand them. Many working adults are not knowledgeable about personal finance topics (see sidebar). That could be a lot of money we are not making not based on lack of resources or income but lack of knowledge!

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3. Personal financial planning process

The key component of personal finance is financial planning, which is a dynamic process that requires regular monitoring and reevaluation. In general, it involves five steps:

1. Assessment:

A person's financial situation is assessed by compiling simplified versions of financial statements including balance sheets and income statements. A personal balance sheet lists the values of personal assets (e.g., car, house, clothes, stocks, bank account), along with personal liabilities (e.g., credit card debt, bank loan, mortgage). A personal income statement lists personal income and expenses.

2. Goal setting:

Having multiple goals is common, including a mix of short- and long-term goals. For example, a long-term goal would be to "retire at age 65 with a personal net worth of $1,000,000," while a short-term goal would be to "save up for a new computer in the next month." Setting financial goals helps to direct financial planning. Goal setting is done with an objective to meet specific financial requirements.

3. Plan creation:

The financial plan details how to accomplish the goals. It could include, for example, reducing unnecessary expenses, increasing the employment income, or investing in the stock market.

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4. Execution:

Execution of a financial plan often requires discipline and perseverance. Many people obtain assistance from professionals such as accountants, financial planners, investment advisors, and lawyers.

5. Monitoring and reassessment:

As time passes, the financial plan is monitored for possible adjustments or reassessments.

Typical goals that most adults and young adults have are paying off credit

card/student loan/housing/car loan debt, investing for retirement, investing for

college costs for children, paying medical expenses.

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4. Areas of focus

The six key areas of personal financial planning, as suggested by the Financial Planning Standards Board, are;

1. Financial position: is concerned with understanding the personal resources available by examining net worth and household cash flow. Net worth is a person's balance sheet, calculated by adding up all assets under that person's control, minus all liabilities of the household, at one point in time. Household cash flow totals up all the expected sources of income within a year, minus all expected expenses within the same year. From this analysis, the financial planner can determine to what degree and in what time the personal goals can be accomplished.

2. Adequate protection: or Insurance, the analysis of how to protect a household from unforeseen risks. These risks can be divided into liability, property, death, disability, health and long-term care. Some of these risks may be self-insurable while most will require the purchase of an insurance contract. Determining how much insurance to get, at the most cost effective terms requires knowledge of the market for personal insurance. Business owners, professionals, athletes and entertainers require specialized insurance professionals to adequately protect themselves. Since insurance also enjoys some tax benefits, utilizing insurance investment products may be a critical piece of the overall investment planning.

3. Tax planning: typically, the income tax is the single largest expense in a household. Managing taxes is not a question whether or not taxes will be paid, but when and how much. The government gives many incentives in the form of tax deductions and credits, which can be used to reduce the lifetime tax burden. Most modern governments use a progressive tax. Typically, as one's income grows, a higher marginal rate of tax must be paid.

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Understanding how to take advantage of the myriad tax breaks when planning one's personal finances can make a significant impact.

4. Investment and accumulation goals: Planning how to accumulate enough money for large purchases and life events is what most people consider to be financial planning. Major reasons to accumulate assets include, purchasing a house or car, starting a business, paying for education expenses, and saving for retirement.

Achieving these goals requires projecting what they will cost, and when one needs to withdraw funds. A major risk to the household in achieving their accumulation goal is the rate of price increases over time, or inflation. Using net present value calculators, the financial planner will suggest a combination of asset earmarking and regular savings to be invested in a variety of investments. In order to overcome the rate of inflation, the investment portfolio has to get a higher rate of return, which typically will subject the portfolio to a number of risks. Managing these portfolio risks is most often accomplished using asset allocation, which seeks to diversify investment risk and opportunity. This asset allocation will prescribe a percentage allocation to be invested in stocks, bonds, cash and alternative investments. The allocation should also take into consideration the personal risk profile of every investor, since risk attitudes vary from person to person.

5. Retirement planning is the process of understanding how much it costs to live at retirement and coming up with a plan to distribute assets to meet any income shortfall. Methods for retirement plan include taking advantage of government allowed structures to manage tax liability including: individual (IRA) structures, or employer sponsored retirement plans.

6. Estate planning involves planning for the disposition of one's assets after death. Typically, there is a tax due to the state or federal government when one dies. Avoiding these taxes means that more of one's assets will be distributed to their heirs. One can leave their assets to family, friends or charitable groups

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5. Insurance policies

In insurance, the insurance policy is a contract (generally a stand form contract) between the insurer and the insured, known as the policyholder, which determines the claims which the insurer is legally required to pay. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy language.

Insurance contracts are designed to meet specific needs and thus have many features not found in many other types of contracts. Since insurance policies are standard forms, they feature boilerplate language which is similar across a wide variety of different types of insurance policies.

Insurance Policies - Categorization

General Insurance 1. Personal Insurance 2. Rural Insurance 3. Industrial Insurance 4. Commercial Insurance 5. Home insurance 6. Travel insurance

Life Insurance 1. Whole Life Plan 2. Endowment 3. Money Back 4. Term plan 5. ULIP

General Insurance

In the current scenario, Insurance is much more than just life cover. Over the years it has successfully identified the growing needs for security of its customers and in the process has covered each and every aspect of our life. Today insurance policies envelops everything ranging from robberies to wedding, shops to assets, travel to vehicles, etc. With the initiation of Triton Insurance Company of Calcutta,

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general insurance industry in India saw the emergence of India's first general insurance house. General Insurance in other words is a non-life insurance which insures everything excluding life. Health, Holiday, Accident, Travel, Mortgage Protection, etc are some of the aspects that General Insurance covers. As compared to the normal life insurance policies, general insurance policies function in a different method.

Top general insurance companies in India Here is the list of some of the top general insurance companies in India and their products. Tata AIG General Insurance Company Limited: The firm started its operation in 2001 and is a joint venture between American International Group Inc. (AIG) and Tata Sons. In the tie-up Tata holds the stake of 74% while AIGposses 26% of the venture. The General Insurance policies offered by Tata AIG General Insurance Company Limited in India are:

Hospital Care Healthcare Maharaksha Secured Future Plan Householder Insurance Critical Illness Insurance Auto Insurance Travel Insurance Personal Accident Insurance Shopkeepers Insurance Mediclaim Insurance Hospital Cash Insurance

ICICI Lombard General Insurance Company Limited: The Company initiated it general insurance business in 2001 and is an ISO 9001:2000 certified firm. It is India's premiere private insurance firm and is collaboration between India ICICI Bank Ltd and Fairfax Financial Holdings Limited. At the Asia Insurance Industry Awards ceremony, the company was honored as one of the top three "General Insurance Company of the Year". The General Insurance policies offered by ICICI Lombard General Insurance Company Ltd in India are:

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Householder Insurance Travel Insurance Personal Accident Insurance Auto Insurance Health Insurance

The Oriental Insurance Company Limited: The Company commenced its business in the year 1947 and offered insurance covers to the public at a feasible price. Since 1947, The Oriental Insurance Company Limited has been providing its services to all sections of the society besides offering exclusive covers to mega projects to firms venturing to establish power plants, chemical plants, etc. The General Insurance policies offered by The Oriental Insurance Company Limited in India are:

Personal Accident Insurance Auto Insurance Shopkeepers Insurance Householder Insurance Travel Insurance Health Insurance

IFFCO Tokio General Insurance: Known as one of the finest general insurance firm in India, IFFCO Tokio General Insurance offers excellent service to its customers at reasonable costs. The firm has excelled in giving ingenious solutions to its vast clientele. It has been considered as consumer-centric firm and was the first to offer plans to its automobile and fertilizer customers. The General Insurance policies offered by IFFCO Tokio General Insurance in India are:

Travel Insurance Health Insurance Personal Accident Insurance Householder Insurance

Bajaj Allianz General Insurance Company Limited: A joint venture between Allianz AG, who holds 26% in the company's stake; and Bajaj Auto Limited, who hold the remainder shares; Bajaj Allianz General Insurance Company Limited initiated its operations in 2001. It has a capital foundation of around ` 148 crores and is a premiere private insurer in India offering all kinds of non-life insurance

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such as health, risk management, etc. The General Insurance policies offered by Bajaj Allianz General Insurance Company Limited in India are:

Auto Insurance Personal Accident Insurance Health Insurance Householder Insurance Travel Insurance

Life Insurance

Life insurance is what that protects your family in your absence. Life insurance policies provide a certain amount of money to your family in case something happens to you. These come as a great financial relief during the hour of needs. There are a number of insurance companies in India that offer life insurance policies to its customers. The top insurance policies in India also act as flexible money-saving scheme.

There are a number of life insurance policies available in India. Different policies come with different features. The coverage amount and policy term also vary. There are several popular insurance companies that offer top life insurance policies in India. Before going for any life insurance policies, compare various policies offered by the top insurance companies.

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List of Top Insurance Polices: There are a number of insurance polices available in India offered by the companies like LIC, SBI Life, Reliance Life, Max New York, Bharti AXA, HDFC Standard, Metlife etc. Some of the top insurance policies in India can be listed as below: LIC

Product Name AnmolJeevan Regular Premium

Coverage Amount ` 10,00,000

Minimum Policy Term 5 years

Maximum Policy Term 25 years

Minimum Entry Age 18 years

Maximum Entry Age 55 years

Maximum Exit Age 65 years

Premium Frequency Options Yearly / Half-yearly

Tata AIG - Raksha

Product Name Raksha

Coverage Amount ` 10,00,000

Minimum Policy Term 10 years

Maximum Policy Term 25 years

Minimum Entry Age 18 years

Maximum Entry Age 50 years

Maximum Exit Age 59 years

Premium Frequency Options Annual / Half-yearly / Quarterly / Monthly

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SBI Life - SBI Shield Annual Premium

Product Name SBI Shield - Annual Premium

Coverage Amount ` 10,00,000

Minimum Policy Term 5 years

Maximum Policy Term 25 years

Minimum Entry Age 18 years

Maximum Entry Age 60 years

Maximum Exit Age 60 years

Premium Frequency Options Annual / Half-yearly / Quarterly

Reliance Life - Relaince Term Plan

Product Name Reliance Term Plan

Coverage Amount ` 10,00,000

Minimum Policy Term 5 years

Maximum Policy Term 30 years

Minimum Entry Age 21 years

Maximum Entry Age 60 years

Maximum Exit Age 65 years

Premium Frequency Options Annual / Half-yearly / Quarterly

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Max New York - Level Term Policy

Product Name Level Term Policy

Coverage Amount ` 10,00,000

Minimum Policy Term 5 years

Maximum Policy Term 42 years

Minimum Entry Age 18 years

Maximum Entry Age 55 years

Maximum Exit Age 60 years

Premium Frequency Options Annual / Half-yearly / Quarterly / Monthly / Single

Bharti AXA - Secure Confident

Product Name Secure Confident

Coverage Amount ` 10,00,000

Minimum Policy Term 5 years

Maximum Policy Term 25 years

Minimum Entry Age 18 years

Maximum Entry Age 55 years

Maximum Exit Age 60 years

Premium Frequency Options Annual / Half-yearly / Quarterly / Monthly

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HDFC Standard - Term Assurance Regular Premium

Product Name Term Assurance Regular Premium

Coverage Amount ` 10,00,000

Minimum Policy Term 5 years

Maximum Policy Term 30 years

Minimum Entry Age 18 years

Maximum Entry Age 60 years

Maximum Exit Age 65 years

Premium Frequency Options Annual / Half Yearly / Quarterly

Metlife - Suraksha Regular Premium

Product Name Suraksha Regular Premium

Coverage Amount ` 10,00,000

Minimum Policy Term 5 years

Maximum Policy Term 42 years

Minimum Entry Age 18 years

Maximum Entry Age 60 years

Maximum Exit Age 65 years

Premium Frequency Options Annual / Half-yearly / Quarterly / Monthly

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Insurance Companies in india

1 Life insurance corporation of india

2 General insurance corporation of india

3 National insurance co.ltd

4 Oriental insurance co.ltd

5 New india assurance co.ltd

6 United india insurance co.ltd

7 Tata AIG insurance co.ltd

8 Royal sundaram alliance insurance india

9 IFFCO-Tokio general insurance

10 ICICI Lombard general insurance

11 Bajaj Allianz life insurance

12 ANZ insurance

13 Birla sun life insurance

14 Om kotak Mahindra insurance company

15 SBI life insurance

16 Sahara india life insurance

17 Reliance life insurance

18 MetLife india insurance

19 Max Life insurance company

20 HDFC standerd life insurance

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6.Fixed deposit

A fixed deposit (FD) is a financial instrument provided by banks which provides

investors with a higher rate of interest than a regular savings account, until the

given maturity date. It may or may not require the creation of a separate account. It

is known as a term deposit or time deposit in Canada, Australia, New Zealand, and

the US, and as a bond in the United Kingdom and India. They are considered to be

very safe investments. Term deposits in India and Pakistan is used to denote a

larger class of investments with varying levels of liquidity. The defining criteria for

a fixed deposit is that the money cannot be withdrawn from the FD as compared to

a recurring deposit or a demand deposit before maturity. Some banks may offer

additional services to FD holders such as loans against FD certificates at

competitive interest rates. It's important to note that banks may offer lesser interest

rates under uncertain economic conditions. The interest rate varies between 4 and

11 percent. The tenure of an FD can vary from 7, 15 or 45 days to 1.5 years and can

be as high as 10 years. These investments are safer than Post Office Schemes as

they are covered by the Deposit Insurance and Credit Guarantee Co-operation

(DICGC). However, DICGC guarantees amount up to ₹ 1,00,000 (about ) per

depositor per bank. They also offer income tax and wealth tax benefits.

Top 10 Fixed Deposit schemes for 1 year tenure

Listed below are some of the best schemes for tenure of 1 Year.

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1. Shriram City Union Fixed Deposit for 1 Year

Despite being an NBFC, Shriram City Finance is one of the most successful and trusted fixed deposit providers in the country. This NBFC offers an interest rate of 8.42% under the monthly compounding system, and 8.48% under the quarterly compounding system.

Example: For an investment of Rs.2 lakh:

Interest compounding Amount

invested Tenure Total amount earned at the end of

tenure Under monthly compounding at 8.42%

Rs.2 lakh 1 year Rs.2,17,505

Under quarterly compounding at 8.48%

Rs.2 lakh 1 year Rs.2,17,507

2. RBL Bank One Year Fixed Deposit

One of the most trusted but least advertised private sector banks in India – RBL Bank – has a range of options for fixed deposits in terms of tenure. The interest rates vary between 8.14% and 8.24% for deposits up to 1 year, depending on the amount invested. Senior citizens get a preferential interest rate ranging between 8.77% and 8.67%, depending on the amount invested, for the same tenure. The bank offers 5 different FD plans, depending on the needs of the customer.

Example: For an investment of Rs.2 lakh:

Interest compounding Amount

invested Tenure Total amount earned at the end of

tenure Under monthly compounding at 8.24%

Rs.2 lakh 1 year Rs.2,17,117

Under quarterly compounding at 8.48%

Rs.2 lakh 1 year Rs.2,17,507

3. Bandhan Bank 1 Year Fixed Deposit:

This bank offers 2 FD schemes that can be chosen depending on the requirement of the customer. Compounding frequency can be chosen as either monthly or quarterly, and the interest rate is a flat 8% for the tenure of 1 year.

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Example: For an investment of Rs.2 lakh:

Interest compounding Amount

invested Tenure Total amount earned at the end of

tenure Under monthly compounding at 8.00%

Rs.2 lakh 1 year Rs.2,16,600

Under quarterly compounding at 8.48%

Rs.2 lakh 1 year Rs.2,16,486

4. Mahindra Finance Fixed Deposit for 1 Year:

This private NBFC provides higher interest rates than most banks, and has been around long enough to be widely considered a trusted name in personal finance. Senior citizens get an additional 0.25% on the interest rate through Mahindra finance. Mahindra Finance offers 8.00% interest on its fixed deposits. Interest is compounded either quarterly or half-yearly.

Example: For an investment of Rs.2 lakh:

Interest compounding Amount

invested Tenure Total amount earned at the end of

tenure Under quarterly compounding at 8.00%

Rs.2 lakh 1 year Rs.2,16,486

Under half-yearly compounding at 8.48%

Rs.2 lakh 1 year Rs.2,16,320

5. Shriram Transport Finance Company 1 Year Fixed Deposit:

This is an NBFC that’s expanded its operations from offering financing for those that require transportation related assets and has moved into deposits, etc. Interest can be compounded in these deposits on a monthly, quarterly, half-yearly, and yearly basis. Interest rates offered are 7.95% for monthly compounding, 8.00% for quarterly compounding, 8.08% for half-yearly compounding, and 8.25% for annual compounding.

Example: For an investment of Rs.2 lakh

Interest compounding Amount

invested Tenure Total amount earned at the end of

tenure Under monthly compounding at 7.95%

Rs.2 lakh 1 year Rs.2,16,492

Under quarterly compounding at Rs.2 lakh 1 year Rs.2,16,486

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8.00%

Under half-yearly compounding at 8.08%

Rs.2 lakh 1 year Rs.2,16,486

Under yearly compounding at 8.25%

Rs.2 lakh 1 year Rs.2,16,500

6. Indian Post Office Fixed Deposit for 1 Year Tenure:

The Indian Post Office offers the most widely available fixed deposit schemes in the country. Also, this institution provides a lower interest rate as compared to most banks and NBFCs but is arguably the most trustworthy place in which to park your funds. Interest is compounded quarterly, but paid annually, and is currently being offered at 7.1% for a tenure of 1 year.

Example: For an investment of Rs.2 lakh:

Interest compounding Amount

invested Tenure Total amount earned at the end of

tenure Under quarterly compounding at 7.10%

Rs.2 lakh 1 year Rs.2,14,583

7. Sundaram Finance Fixed Deposit for 1 Year:

Another very successful and widely trusted NBFC that offers fixed deposits is the Sundaram Finance NBFC. Investors are offered the choice of having interest compounded monthly or quarterly. The deposits can be made for a tenure of one year and interest is compounded monthly at the rate of 7.95%, and quarterly at the rate of 8.00%.

Example: For an investment of Rs.2 lakh:

Interest compounding Amount

invested Tenure Total amount earned at the end of

tenure Under monthly compounding at 7.95%

Rs.2 lakh 1 year Rs.2,16,492

Under monthly compounding at 8.00%

Rs.2 lakh 1 year Rs.2,16,486

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8. LIC Housing One Year Fixed Deposit:

The LIC Housing Finance Company has been rated FAAA by CRISIL, and offers interest rates on par with most banks and leading NBFCs for deposits of 1 year tenure. Senior citizens are offered an additional interest rate of 0.10% on top of the advertised interest rate which is 8.25% for fixed deposits of a 1 year tenure. Interest compounds annually only.

Example: For an investment of Rs.2 lakh:

Interest compounding Amount

invested Tenure Total amount earned at the end of

tenure Under annual compounding at 8.25%

Rs.2 lakh 1 year Rs.2,16,500

9. ICICI Home Finance 1 Year FD:

The minimum deposit tenure offered by the ICICI Housing Finance Company is 1 year. Interest can be compounded annually, quarterly, or monthly. The current interest rates are 7.90% for the monthly compounding option, 7.95% for the quarterly compounding option, and 8.20% for the annual compounding option.

Example: For an investment of Rs.2 lakh:

Interest compounding Amount

invested Tenure Total amount earned at the end of

tenure Under monthly compounding at 7.90%

Rs.2 lakh 1 year Rs.2,16,385

Under quarterly compounding at 7.95%

Rs.2 lakh 1 year Rs.2,16,380

Under annual compounding at 8.20%

Rs.2 lakh 1 year Rs.2,16,400

10. IndusInd Bank FD for 1 Year Tenure:

One of the better options to take a fixed deposit out from a private sector bank is the IndusInd Bank. Investors in this FD can make partial withdrawals from their accounts. The interest rate currently is 7.50%, which is lower than most other offerings, but comes from an institution that’s been rated as one of the most trustworthy and reliable in this kind of business.

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Example: For an investment of Rs.2 lakh:

Interest compounding Amount

invested Tenure Total amount earned at the end of

tenure Under annual compounding at 7.50%

Rs.2 lakh 1 year Rs.2,15,000

Tax Saver Fixed Deposits Interest rate comparison

Given below is a clear comparison of interest rates of the top 5 Tax Saver Fixed Deposit schemes in India:

Bank Name of the Tax Saver FD

scheme General rate of

interest Rate of interest for senior

citizens

Axis Bank Axis Bank Tax Saver Fixed Deposit

7.25% per annum 7.75% per annum

ICICI

Bank ICICI Bank Tax Saver Fixed Deposit

7.50% per annum 8.00% per annum

HDFC

Bank HDFC Bank Tax Saver Fixed Deposit

7.50% per annum 8.00% per annum

SBI Bank SBI Tax Saving Scheme 2006 7.00% per annum 7.25% per annum

IDBI Bank Suvidha Tax Saving Fixed Deposit Scheme

7.50% per annum 8.00% per annum

Tax Saver FD Tax saver fixed deposit is a type of fixed deposit by investing in which you can get tax deduction under section 80C of the Indian Income Tax Act, 1961. Normally, tax saver deposits are of two types - “Single holder Type Deposits" and “Joint holder Type Deposits”. Such deposits are offered for a lock-in period of 5 years. Any investor can claim a deduction of maximum Rs.1, 50,000 by investing in tax saver fixed deposits. Key highlights of Tax Saver FDs:

Maturity period of a tax saver FD is 5 years. Get tax deduction up to Rs.1, 50,000. Deduction is available to individuals, members of Hindu undivided family

(HUF), senior citizens and NRIs. The interest earned from tax saver fixed deposits is taxable. Tax will

deducted at source. Premature withdrawal is not available. You cannot get loan against tax saver fixed deposits.

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Tax saver deposits can be opened both singly and jointly. In case of a joint account, tax benefit will be availed by first holder of the deposit as per the section 80C of the Income Tax Act, 1961.

Benefits of investing in Tax Saver FDs:

Tax saver fixed deposits come with a number of benefits which include:

The major benefit of investing in tax saver fixed deposit is that it helps you save income tax.

You can start investing with as little as Rs.100 and add to your savings. Since premature withdrawal is not available in case of tax saver fixed

deposits, you can be sure of receiving assured returns, apart from saving tax. Nomination facility is available. You can nominate/authorize someone to

withdraw your deposit before or post maturity in the event of your death.

A fixed deposit is a financial instrument where an investor gives a certain sum of money to a bank or a financial institution(company) and the entity pays interest for the duration of the deposit. The rate of interest paid varies depending on the amount and tenure. Investor’s, especially conservative investors, prefer to open fixed deposits as it is a safe investment option and it can be opened easily and quickly.

The reasons why fixed deposits are an ideal form of investment are as follows:

Guaranteed returns:

Unlike investment in the stock market or commodity market, fixed deposits are not a risky investment as they do not depend on fluctuating market rates. Investors can rest assured that his investments are safe and he will be getting back a guaranteed amount at the end of the tenure.

Easily with drawable:

The amount that is invested in fixed deposit can be withdrawn at any time for a small penalty. The investor may have a financial emergency to meet financial needs during marriage, sickness or when his business is in loss. The penalty is less than that of selling stocks or real estate as the asset cannot be sold easily because of its high value and if you are in a distressed situation,

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you will sell it for a much lower rate. Whereas, fixed deposits can be withdrawn at any time and all you lose is a certain interest income.

Flexible in nature:

Fixed deposits can be taken for a tenure of 1 month or 1 year or 10 years based on your needs and for whatever amount that you can invest. Fixed deposits can be invested for a tenure of your choice. If you have planned for a big event in 5 years, then you can have a fixed deposit kept for 5 years to meet your financial requirement in 5 years. You can have various fixed deposit accounts to save for different goals.

Encourages saving habit:

Fixed deposits require you to keep the amount for a certain period to accumulate the said interest amount. This encourages the saving habit of an individual. He will not be tempted to spend the money and find a way to manage his finances more efficiently.

Higher rate of return:

The interest rate offered on fixed deposits are higher than that on savings account. It is also a safe form of investment where returns are guaranteed.

Flexible interest rate pay-outs:

Interest can be paid at different intervals depending on the term you choose. Interest rates are paid at maturity, annually or monthly. Monthly and annual interest rate pay-out ensure that you have the extra income flow and can be reinvested for higher maturity benefits.

Things to consider while investing in fixed deposits:

When you are investing in fixed deposits, it is wise for you to invest with different providers. This way you won’t have to break one entire deposit in case of emergency and provides extra security for the amount as your amount will be insured. The premature withdrawal penalty will be paid for a smaller amount while the rest of the money can keep growing.

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Fixed deposit investments can be laddered for different tenures. For instance, if you have Rs.4 lakh, split the amount in four deposits of Rs.1 lakh each for one, two, three and four years. When the one year deposit is matured, reinvest it for a different tenure depending on new interest rates. This will balance out the highs and lows in the interest over a period of time. It will also ensure liquidity as you have deposits maturing at different times.

Make sure that you chose the right tenure as you also have to consider the lock-in period and if you are withdrawing the amount before its tenure, then the returns are lower.

The income earned on the deposit that you have taken in the name of your spouse or your child will be clubbed with your income for tax purposes.

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7. Recurring deposits

Recurring Deposit is a special kind of Term Deposit offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits. It is similar to making FDs of a certain amount in monthly installments, for example Rs 1000 every month. This deposit matures on a specific date in the future along with all the deposits made every month. Thus, Recurring Deposit schemes allow customers with an opportunity to build up their savings through regular monthly deposits of fixed sum over a fixed period of time. Minimum Period of RD is 6 months and maximum is 10 years.

The Recurring Deposit can be funded by [Standing order (banking) Standing instructions] which are the instructions by the customer to the bank to withdraw a certain sum of money from his Savings/ Current account and credit to the Recurring Deposit every month.

When the RD account is opened, the maturity value is indicated to the customer assuming that the monthly installments will be paid regularly on due dates. If any installment is delayed, the interest payable in the account will be reduced and will not be sufficient to reach the maturity value. Therefore, the difference in interest will be deducted from the maturity value as a penalty. The rate of penalty will be fixed upfront. Interest is compounded on quarterly basis in recurring deposits.

One can avail loans against the collateral of Recurring deposit up to 80 to 90% of the deposit value.

Rate of Interest offered is similar to that in Fixed Deposits. Earlier it seemed to be one of the best methods to save the amount yield after years of deposit. But effective from June 1, 2015 TDS is applicable on RDs.

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Recurring Deposit Interest Rates Comparison

Bank Name RD Interest Rates Senior Citizen RD Rates

Allahabad Bank RD Rates

7.00% to 7.35% 7.00% to 7.35%

Andhra Bank RD Rates

7% to 7.25% 7.5% to 7.75%

Axis Bank RD Rates

7.25% to 7.50% 7.75% to 8%

Bandhan Bank RD Rates

7.75% to 8.25% 8.25% to 8.75%

Bank of India RD Rates

7.25% to 7.30% 7.25% to 7.30%

Bank of Maharashtra RD Rates

7.25% to 7.51% 7.75% to 8.01%

BharatiyaMahila Bank RD Rates

7.00% to 7.25% 7.50% to 7.75%

Canara Bank RD Rates

7% to 7.5% 7.5% to 8%

Central Bank of India RD Rates

7.25% to 7.50% 7.25% to 7.50%

City Union Bank RD Rates

7% to 7.6% 7.25% to 8%

Corporation Bank RD Rates

7.25% to 7.50% 7.75% to 8.00%

Dena Bank RD Rates

7.25% to 7.30% 7.25% to 7.30%

Deutsche Bank RD Rates

6.25% to 8.50% 6.75% to 8.75%

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DHFL Bank RD Rates

8.75% 8.75%

HDFC Bank RD Rates

6.5% to 7.5% 7% to 8.00%

ICICI Bank RD Rates

7.00% to 7.50% 7.50% to 8.00%

IDBI Bank RD Rates

7.25% to 7.40% 7.75% to 7.90%

Indian Bank RD Rates

7.00% to 7.40% 7.50% to 7.90%

IndusInd Bank RD Rates

7.25% to 7.75% 7.75% to 8.25%

Jammu and Kashmir Bank RD Rates

7.25% to 7.75% 7.75% to 7.25%

Karnataka Bank RD Rates

7.3% to 7.75% 7.8% to 8.25%

KarurVysya Bank RD Rates

7.5% 8%

Kotak Mahindra Bank RD Rates

7.00% to 7.50% 7.50% to 8.00%

Lakshmi Vilas Bank RD Rates

7.40% to 7.70% 7.40% to 7.70%

Nainital Bank RD Rates

7.50% to 7.90% 8.00% to 8.40%

Post Office RD Rates

7.40% 7.40%

Punjab and Sind Bank RD Rates

7.25% to 7.40% 7.75% to 7.90%

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Punjab National Bank RD Rates

7% to 7.3% 7.5% to 7.8%

Saraswat Bank RD Rates

6.75% to 7.80% 6.75% to 8.05%

South Indian Bank RD Rates

7% to 7.25% 7.5% to 7.75%

State Bank of India RD Rates

7.00% to 7.50% 7.25% to 7.75%

State Bank of Mysore RD Rates

7.50% to 7.60% 7.90% to 8.00%

State Bank Of Travancore RD Rates

7.00% to 7.50% 7.40% to 7.90%

Syndicate Bank RD Rates

6.75% to 7.5% 6.75% to 7.5%

Tamilnad Mercantile Bank RD Rates

7.30% to 7.65% 7.30% to 8.15%

Union Bank of India RD Rates

7.00% to 7.55% 7.00% to 7.55%

Vijaya Bank RD Rates

7.00% to 7.50% 7.00% to 8.00%

Yes Bank RD Rates

7.25% to 7.50% 7.75% to 8%

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Types of Recurring Deposit Interest Rates

Regular Savings Scheme - Banks offer recurring deposits to Indian citizens above the age of 18 years. Customers can choose to deposit a fixed sum of money for a period of time, usually between 6 months to 10 years. Interest can be computed on simple or compound basis. At the end of the tenure, the lump sum amount can be withdrawn. Some schemes allow you to reinvest the money. You can open a recurring deposit for as little as Rs. 10 per month. The interest rates on the regular recurring deposits range between 7% to 8% per annum.

Junior RD Schemes - Bank’s also offer recurring deposit schemes for kids. Parents or guardians can open these deposits for their children to start saving for their future, education and other needs. Students can also avail of these deposit schemes. Learning to handle finances and the importance of saving at a young age will help inculcate a smart sense of money. The interest earned on these deposits will either be equivalent to the regular RD schemes or be higher to encourage saving amongst the youngsters.

Senior Citizens RD Schemes - Banks offer higher rates of interest for senior citizens. Usually, 0.50% per annum is given over and above the prevailing interest rate. The interest rates range between 7.5% to 9.25% per annum. There are also schemes available that are designed to help senior citizens during their retirement and old age.

NRE/NRO RD schemes - NRE and NRO recurring deposit accounts may be offered a lower interest rate. Furthermore, senior citizens who hold NRE/NRO accounts will not be offered the additional interest rate. These accounts attract around 7.50% interest per annum.

Special RD Schemes - Banks offer different schemes designed to suit the needs and capabilities of a variety of people. These schemes generally carry a higher rate of interest as your goal is more specific. ICICI Bank offers the iWish deposit which allows you to contribute various amounts of money to your RD account. Furthermore, other people can also contribute to help you reach your goals. There are RD schemes with free life insurance available. With certain schemes, you are allowed to withdraw the money in part without breaking the full deposit. Other schemes reward you with a bigger lump sum amount which makes it a worthwhile investment.

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Factors That May Affect Recurring Deposit Interest Rates

Type of account - The account you hold will make a difference in the eligible interest rates. Regular savings accounts usually get higher interest than the NRE/NRO accounts. Some banks offer the same interest rates to both account holders.

Tenure - The tenure of your deposit is one of the most important factors in determining the RD interest rate. Medium term deposits generally earn a much higher interest rate. Some banks offer the highest rate on long-term deposits of 10 years. But this is not always the case as some banks also offer the same interest rate on a 1-year deposit as well as a 10-year deposit.

Age - Almost all banks offer a higher rate of interest to senior citizens. This rate is usually 0.5% per annum higher than the regular interest rates. Junior accounts can also stand to earn a higher interest rate. This depends on the bank’s offer on minor accounts.

Choice of bank - Interest rates vary quite a bit between different banks. Currently, the top banks offer recurring deposits starting at 7% per annum interest. Nationalised banks tend to offer a higher interest rate of up to 8% per annum.

Schemes on offer - Banks also have different recurring deposit schemes running. Corporation Bank has a Millionaire Scheme on offer wherein you will receive a million rupees at the end of the scheme. This deposit carries a very high interest rate of 9.25% per annum. So the choice of your deposit scheme will also factor into the interest rate. Depending on the benefits offered with the RD scheme, your interest rate may vary.

Benefits of Recurring Deposit Interest Rates

Safe investment - Recurring deposits carry no risk or very little at all. Choose a stable and secure bank to ensure that your money is safe. Recurring deposits are just a simple investment of your money and do not dabble in the markets. Therefore the interest rate will not fluctuate and you do not stand to lose any money.

Earn while you save - Your deposit will earn interest from your first contribution. The interest accumulated will increase through your tenure. The longer you invest, the more interest you will earn.

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Lump sum payout - At the end of the RD tenure, you will receive a lump sum of cash. This amount includes your contribution plus the interest earned. You can use the money to reinvest it or spend it on what you were saving for.

Online access - Most banks offer Internet Banking services which you can use to open deposits, access your accounts and see the progress of your deposit. You can also view the different interest rates offered. You can pick the tenure and deposit amount suitable to you and also earn the highest interest offered.

Loan offers - When you have an RD with a bank, you sometimes get pre-approved loan offers. In other cases, your loan applications will be given preference and your processing might be faster. In addition to this, banks offer concessional interest rates on loans as well.

Tax on Recurring Deposit Interest rates

Recurring Deposit is a very popular investment scheme amongst the risk averse Indians mainly because of the good returns and savings benefits that it offers. In a Recurring Deposit scheme, you will have to deposit a fixed amount of money every month for a predefined period of time and the amount will fetch you interest. But, for interest that you earn on Recurring Deposit investment amounts, 10% will be deducted as TDS. Also, the Tax Deducted at Source (TDS) will be 20% if the Pan information is not provided. The Tax Deducted at Source (TDS) varies depending on your annual income, your age and the interest that your accrue on your RD amount.

Which Banks Offer the Highest Recurring Deposit Interest Rates in India?

One of the most preferred investment options in India, Recurring Deposit schemes offer good interest returns with almost no risks involved. In a recurring deposit scheme, the investor will be required to make deposits of a fixed amount every month over a fixed tenure. Almost all major private and Government Banks in India offer Recurring Deposit schemes with competitive interest rates. Generally, the interest rate for a RD scheme is based on several factors like tenure, principal amount and the plan that you choose. Also, the interest rate for recurring deposit schemes vary from bank to bank and it is important that you are well informed about the interest rates offered by all major banks so you can zero in the perfect Recurring Deposit plan for investing your hard earned money

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COMPARISION OF TAX ON INTEREST ON RECURRING DEPOSIT, FIXED DEPOSIT AND

SAVING ACCOUNT

PARTICULAR TAX ON INTREST

RATE ON FIXED

DEPOSITE

TAX ON INTEREST

RATE ON RECURRING

DEPOSIT

TAX ON INTREST RATE

ON SAVING ACCOUNT

APPLICABILITY OF TDS TDS@10% OF

INTEREST

TDS@10% OF

INTEREST

NO TDS

INCOME TAX

DEDUCTION ALLOWED

FULL INTEREST

TAXABLE

FULL INTEREST

TAXABLE

RS.10000 DEDUCTION

INCOME TAX ON

INTEREST

AS PER SLAB RATES AS PER SLAB RATES AS PER SLAB RATES

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8. Real estate

Real estate is "property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property; (more generally) buildings or housing in general. Also: the business of real estate; the profession of buying, selling, or renting land, buildings or housing. “It is a legal term used in jurisdictions such as the United States, United Kingdom, Canada, India, Pakistan, Australia, and New Zealand.

1. Property Investment is a Long Term Venture:

To generate good returns from property investment, you need a span of 5 to 7 years. The property prices don’t go up overnight. Don’t make any investments in property if you are hoping for a higher return within a year. Patience is the key and if you can commit about 5 years to your property investment you will generate great returns from it. Although, real estate market is at an all-time high, there are regular fluctuations observed in this sector too. The prices go high and then dip every seven years so be wise to plan your purchase and selling considering these factors.

2. Get help from a Financial Adviser:

Getting an expert help with any type of investment is always a wise choice. Sometimes we fail to properly analyze the exact amount that we can afford to spend

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on property investment. To clear the confusions, it is advisable to consult financial advisers who can guide you explaining the factors essential for your investment such as terms of time, renovations and money. Don’t hesitate to clear all your confusions with the financial expert else you may end up making a messy investment.

3. Don’t Put All Your Eggs in one Basket:

This old saying is applicable for all kinds of investment options. Never put all your hard earned money into one investment. Also as discussed earlier, property investment is a long term venture and the returns can be generated only after a span of 4 to 5 years. So, instead of investing everything you have, choose to keep aside the money you would need for your daily expenses and only spend the “extra” capital you earn in property investment. Property investment will guarantee a secured future but to secure your future you shouldn’t ruin your present. Hence, make a wise choice and put aside the extra capital for property investment and make the purchase.

4. Go for a Strategic Approach with Proper Planning:

Proper planning and strategy is necessary for all kinds of investment. Property investment is no different from them. Before investing in a property, decide your budget, the type of property you want to invest in, the amount required for repairs if the property is old, and when (if ever) are you planning to sell it. Do a proper research about different real estate markets as the property prices are hugely dependent on location. Also consider the type of tenants you wish for your property and plan the location accordingly. This way you will set up an effective action plan to buy your first investment property that would guarantee great returns in the future.

5. Choose Your Investment Property Wisely:

Although the real estate market is experiencing an ultimate boom recently, you must be wise enough to choose the right property at the prime location to gain maximum returns on your returns. The price of a real estate property is hugely dependent on its location. A huge, attractive and newly constructed bungalow may cost nothing in a remote area while a property in ruins at a prime location may be valued in millions. Hence, location is the key when you decide to buy a property

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for investment purpose. Always opt for property investments in growing market rather than a highly priced realty location. Properties in growing markets are often affordable and the rates of these properties are bound to increase as the area or the city is climbing up the ladders of development and infrastructure. Tenants are also easily found in such growing markets which would guarantee great rental income from your property.

That’s it. Follow the above guidelines thoroughly and opt for the best property to invest in. Real Estate investment is one of the safest investment options today as there are many growing real estate markets in India where you can invest with guaranteed higher returns.

Benefits of investing in real estate

By investing in many properties, you can build an asset bank and raise your net worth

Real estate investment is often seen as a tool to hedge volatile investments in the stock market

The benefit of investing in real estate is that it offers an opportunity to earn rental income

Rental rates rise whenever a lease term expires, and is renewed

In addition to profiting from renting out your properties, you are also benefiting from its gradual rise in value

Real estate is also an extremely tax-efficient investment. Depreciation of your assets can cancel out some or all of your profits, allowing you collect rental income at a favorable tax rate.

Real estate is a long-term investment, because people hold on to it for a while. Selling real estate is time consuming.

An investor or a buyer has much higher control over the performance of a real estate investment than other types of investments. For example, a buyer can do things to a property to increase its value.

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Real estate returns do not have a high correlation with the performance of other asset classes (such as stocks and bonds). This leads to greater diversification in the buyer’s investment decision

Mistakes to avoid

After you have made up your mind to invest in real estate, it is better to avoid buying or investing in under-construction flats. The buyer is actually lending money to a developer hoping that he will deliver a flat in the not-so-distant future. A buyer makes a good return when they buy an under-construction flat. But high returns imply greater risks. In the Indian context, the risks of buying an under-construction flat are so high that real estate developers have to lower prices enough to give the buyer good returns. As long as you understand the risks involved in it, there is nothing wrong in buying under construction flats for higher returns. But most people don’t understand the risks well. Everybody should invest in real estate. Do not delay buying your own home. Understand what you are getting into when you buy an under-construction flat.

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5. Best Places for Real Estate Investment in Mumbai

Gold , diamonds , equities , deposit schemes are not as lucrative as the realty estate market is , when you talk about investment . Real Estate is the most sought after investment options since it almost guarantees high-paying returns as well as easy regular income avenue .

Mumbai , the financial capital of India , continues to attract thousands daily , with hopes of employment opportunities, thus , demand for affordable housing is significant enough a sign to show that property prices herein Mumbai are here to increase & nothing else . Mumbai holds certain places which may render sky rocketing returns in the near future.

Here are those top 10 places that guarantee best returns / investment options in and around Mumbai :

1. Kharghar ,Navi Mumbai

It is one of the most well planned sectors in this city . It has been developed by CIDCO , and holds upto 45 sectors , which are well organized and developed with respect to the infrastructure. Kharghar has growing employment opportunities due to growing industrial and commerce activity in it’sregion . Good connectivity to other suburbs like Pune &Thane , both , through Central Railway Lines and and Mumbai Eastern & Western Express Highways . Wide roads , skywalks , central park , etc are few of the

many reasons fuelling growth in this part of Navi Mumbai.

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2. Chembur

It is located on the eastern part of Mumbai and has witnessed huge infrastructural development in the past 5 years . It is in comfortable proximity to the South

Western suburbs of Mumbai as well as the Central region . It enjoys excellent connectivity to Mumbai due to the SCLR which reduced travel time to half and made it seem effortless. Monorails will have further improved connectivity between Chembur-Wadala and Jacob Circle. Alongwith this , commercial hubs such as

BKC and Lower Parel are situated at about a distance of 10-12 Kms , thereby commute would be less stressful and time-consuming . Chembur is expected to be connected to Ghatkopar ,soon , via the 2nd metro-phase . All these factors combined, realty experts expect the property prices to be on the upper side of the graph , with a gracious 20-25% increase YoY.

3. Mulund

It is one of the most cosmopolitan suburbs of Mumbai. Once , barely people knew about it’s existence , however due to fast growing micro-economies , old buildings and small industries are now replaced by huge malls , and well planned residential and commercial complexes .Population is on the higher side , however , doesn’t keep it away from holding huge green spaces . Mumbai has always remained on the top for realty choices , however due to rising population and demands , the growth has wisely shifted and towards

Mulund as well , through balanced commercial and residential growth.

In Mulund, some leading housing projects are Nirmal One Mumbai, Ariisto Heaven Bellanza, OberoiEternia Enigma.

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4. Dahisar

Dahisar is in close proximity to the areas, such as Andheri, Goregaon, Malad and Thane through Western Express Highway. It also lies in proximity to several areas in Thane. This way it boasts it connectivity to nearby commercial establishments in Andheri and Thane. This is contributing to the growth of real estate market here. Along with this , realty rates are reasonable , considering the advantages of this region .

Investment point of view , it can be a good bet , with several coastal routes being planned to connect the Northern and Southern part of Mumbai .

5. GhodbunderRoad , Thane

USP of this region is it’s fast connectivity to the eastern and western sides of city , thanks to EEH and WEH . Secondly , residential development has sped up in the past 5 years , considering it’s proximity to suburbs and growing industrial and commercial activity. Also , due to the expectancy of getting connected to Mumbai , even more directly, through Mumbai Monorail , in the coming decade , is improving consumer sentiments to

invest here . Alongwiththis , people travel to extreme city ends, prefer to live here , due to affordable realty prices along with the above benefits , making it a rare offer .

Some of the projects along Ghodbunder Road are Lodha Clariant, Raj Tattva, Acme ozone, Runwal Garden City, Runwal Pearl, RunwalEirene, ShethAvlon, Dosti Landmark, Vijay Orovia, RustomjeeUrbania,Kalpataru Sunrise Grande, Lodha Splendora.

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9. Mutual funds

A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. While there is no legal definition of the term "mutual fund", it is most commonly applied to so-called open-end investment companies, which are collective investment vehicles that are regulated and sold to the general public on a daily basis.

In the United States mutual funds must be registered with the U.S. Securities and Exchange Commission, overseen by a board of directors or board of trustees, and managed by a Registerd Investment Advisior. Mutual funds are subject to an extensive and detailed regulatory regime set forth in Investment Company Act of 1940. Mutual funds are not taxed on their income and profits if they comply with certain requirements under the U.S. Internal Revenue Code.

Mutual funds have both advantages and disadvantages compared to direct investing in individual securities. Today they play an important role in household finances, most notably in retirement planning.

There are three types of U.S. mutual funds: open-end funds, unit investment trusts, and closed-end funds. The most common type, open-end funds, must be willing to buy back shares from investors every business day. Exchange-traded funds (ETFs) are open-end funds or unit investment trusts that trade on an exchange. Non-exchange-traded open-end funds are most common, but ETFs have been gaining in popularity.

Mutual funds are generally classified by their principal investments. The four main categories of funds are money market funds, bond or fixed income funds, stock or equity funds, and hybrid funds. Funds may also be categorized as index (or passively managed) or actively managed.

Investors in a mutual fund pay the fund’s expenses, which reduce the fund's returns and performance. There is controversy about the level of these expenses.

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Top list is summarized on the basis of factors as:

Mutual funds rated as 5 star 4 stars by value research. Mutual funds that recorded high returns since last few years. Top performance of mutual funds across various markets.

1. ICICI Peru Focused blue-chip Equity fund

This mutual fund recorded 17% annual returns in last few years and came as the top in best mutual funds list. If calculations are concerned assume you invested Rs. 1000 per month for 5 years, you will get a return of Rs. 101000 on your total investment of Rs. 60000. You can surely go for this mutual fund for a long term investment of 10 to 20 years.

You must be thinking how this fund achieves this much return? This fund invests 200 stocks in 20 large cap companies that are listed on the basis of market capitalization. Objectives may be altered as per assets. This fund has a consistent performance.

Consistency in the high returns makes this mutual fund more reliable and top most mutual fund investment plan. This mutual fund recorded 17% returns in last 5 years which made it unique.

2. UTI equity mutual fund

Equity and instruments based on equity are the main aspect of investment in UTI equity mutual fund. It invests 80% of the fund in this high risk profiles and remaining 20% is invested in other low to medium risk profiles. This fund keeps its promise to give returns in tough conditions also. As the fund have its well managed planning of investment, it’s more preferable to invest in such mutual fund.

This mutual fund comes in the list of top mutual funds as it maintained its return of 16% in last 5 years. Through SIP if you invest Rs. 1000 per month for 5 years, then

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the total amount of your investment will be Rs. 60000. As a return of 16% you will get Rs. 104000. Such a high percent return makes this fund eligible to come on top mutual fund list.

3. HDFC Top-200 fund

In last 10 years HDFC Top-200 fund kept its consistency by giving 22% of annual returns. This makes it more reliable to opt as an investment in mutual fund. Over last 5 years it gave 15% of annualized returns. If you invest Rs. 1000 per month continuously for 5 years, your total investment would be Rs. 60000. Investing in HDFC Top-200 fund, you will get the return of Rs. 99600.we can conclude that this mutual fund is best for long term investment such as for 10+ years.

Strategy this fund follows, includes 90% of fund investment in equity and remaining 10% in other aspects of debt instruments. They invest in the stocks of companies in BSE 200 index and 200 other large companies in India. Performance of this mutual fund over the decade makes it more preferable investment plan.

4. Franklin Indian smaller companies fund

As name implies this fund invests maximum of its capital in smaller companies in India. Up to 75% investments are done in smaller companies. In last 5 years this mutual fund managed to 24% of annualized returns. If you invest Rs. 1000 for 5 years as the investment per month, you can calculate your investment in 5 Years becomes Rs. 60000. This mutual fund returns Rs. 138000 at the end of 5 years. So we can see it created a benchmark by giving such a high return performance in last 5 years.

What differentiates this mutual fund from other investment plans is its strategy of market cap orientation. As it invests smaller portion in large cap and all remaining smaller sizable part in smaller companies in India, which makes it suitable to name as smaller company fund.

5. Reliance Equity Opportunity fund

Comparing to S&P BSE 100 having 10.2 annualized returns, this fund performed 22% of annualized returns. Strategy this fund adopted is to invest in the stocks that

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are influenced by ongoing economic reforms, infrastructural changes and FDI inflows.

As the mutual fund promises 22% of annualized return, we can calculate as further. If you invest Rs. 1000 per month or 5 years, on the total investment of Rs. 60000, one can get the amount of Rs. 116000 as returns.

This mutual fund can be chosen as a long term investment plan as for eight to ten years. This fund invests in various sectors. Hence we can expect good performance in future too.

Advantages and disadvantages

Mutual funds have advantages over investing directly in individual securities:[6]

Increased diversification: A fund normally holds many securities; diversification decreases risk.

Daily liquidity: Shareholders of open-end funds and unit investment trusts may sell their holdings back to the fund at the close of every trading day at a price equal to the closing net asset value of the fund's holdings.

Professional investment management: Open-and closed-end funds hire portfolio managers to supervise the fund's investments.

Ability to participate in investments that may be available only to larger investors. For example, individual investors often find it difficult to invest directly in foreign markets.

Service and convenience: Funds often provide services such as cheque writing.

Government oversight: Mutual funds are regulated by the SEC Ease of comparison: All mutual funds are required to report the same

information to investors, which makes them easy to compare.

Mutual funds have disadvantages as well, which include:

Fees Less control over timing of recognition of gains Less predictable income No opportunity to customize

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Stock funds

Main article: Stock fund

Stock or equity funds invest in common stocks which represent an ownership share (or equity) in corporations. Stock funds may invest in primarily U.S. securities (domestic or U.S. funds), in both U.S. and foreign securities (global or world funds), or primarily foreign securities (international funds). They may focus on a specific industry or sector.

A stock fund may be sub classified along two dimensions: (1) market capitaliztion and (2) investment style (i.e., growth vs. blend/core vs. value). The two dimensions are often displayed in a grid known as a "style box".

Market capitalization ("cap") indicates the size of the companies in which a fund invests, based on the value of the company's stock. Each company's market capitalization equals the number of shares outstanding times the market price of the stock. Market capitalizations are typically divided into the following categories, with approximate market capitalizations in parentheses:

Micro cap (below $300 million) Small cap (below $2 billion) Mid cap Large cap (at least $10 billion)

Funds can also be classified in these categories based on the market caps of the stocks that it holds.

Stock funds are also sub classified according to their investment style: growth, value, or blend (or core). Growth funds seek to invest in stocks of fast-growing companies. Value funds seek to invest in stocks that appear cheaply priced. Blend funds are not biased toward either growth or value.

At the end of 2014, stock funds accounted for 52% of the assets in all U.S. mutual funds

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Top Ranked Mutual Funds Large Cap Crisil

Rank NAV

(Rs./Unit) 1

yrReturn (%)

AUM (Rs. cr.)

Jun 16

Birla SL Frontline Equity (G) Rank 1 179.87 8.4 9,364.34

Birla Sun Life Top 100 (G) Rank 1 47.03 7.0 1,707.34

Kotak Select Focus Fund - Regular (G)

Rank 1 25.70 7.9 3,825.63

SBI Blue Chip Fund (G) Rank 1 31.70 9.4 4,796.70

Small & Mid Cap Crisil Rank

NAV (Rs./Unit)

1 yrReturn

(%)

AUM (Rs. cr.)

Jun 16

DSP-BR Micro Cap Fund - RP (G)

Rank 1 49.42 17.8 2,422.99

Franklin (I) Smaller Cos (G) Rank 1 45.51 16.6 2,456.15

Mirae Emerging Bluechip Fund (G)

Rank 1 35.60 13.8 1,411.12

Diversified Equity Crisil Rank

NAV (Rs./Unit)

1 yrReturn

(%)

AUM (Rs. cr.)

Jun 16

ICICI Pru Value Discovery Fund (G)

Rank 1 123.10 5.2 10,761.91

L&T India Value Fund (G) Rank 1 27.35 8.1 1,114.22

Principal Emerging Bluechip(G)

Rank 1 77.83 9.5 492.73

SBI Magnum Multicap Fund (G)

Rank 1 37.06 10.7 711.90

UTI MNC Fund (G) Rank 1 158.83 -0.5 1,768.78

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10. Alternative investment in Precious Metals

Gold, Silver, Platinum and Palladium are precious metals, meaning they are rare

metallic chemical elements of high economic value, shiny, hard, and strong with

high melting points. They form alloys (mixtures) with other metals and this makes

them ideal for jewelry.

Gold Silver Platinum

Palladium

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Gold as an investment

Of all the precious metals, gold is the most popular as an investment. Investors

generally buy gold as a way of diversifying

risk, especially through the use of future

contracts and derivatives. The gold

market is subject to speculation and

volatility as are other markets. Compared to

other precious metals used for investment,

gold has the most effective safe haven

and hedging properties across a number of

countries.

Latest Gold Price in Indian Rupees.

Date Time Price Unit Change Low High

2016/08/30 20:30 88,527.79 Ounce -265.42 -0.30 % 88,399.51 88,903.19

2,846.23 Gram -8.53 2,842.11 2,858.30

2,846,234.42 Kilo -8,533.48 2,842,110.40 2,858,303.92

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Silver as an investment

Silver, like other precious metals, may be used as an investment. For more than four thousand years, silver has been regarded as a form of money and store of value. However, since the end of the silver standard, silver has lost its role as a legal tender in all developed countries, although some countries mint bullion and collector coins like the American Silver Eagle with nominal face values. In 2009, the main demand for silver was for industrial applications (40%), jwelery, bullion coins and exchange-traded products. In 2011, the global silver reserves amounted to 530,000 tones.In econometric and volatility analysis, silver is shown effective safe haven and hedging properties against downturns in international equities markets.

Latest Silver Price in Indian Rupees.

Date Time Price Unit Change Low High

2016/08/30 20:40 1,254.04 Ounce -12.70 -1.00 % 1,254.04 1,268.72

40.32 Gram -0.41 40.32 40.79

40,318.32 Kilo -408.30 40,318.32 40,790.24

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Platinum as an investment

Platinum as an investment has a much shorter history in the financial sector than does either gold or silver, which were known to ancient civilizations. Experts posit that platinum is about 15-20 times scarcer than gold, on the basis of annual mine production. Because of this fact, platinum has nearly always tended to sell at a significant price premium to gold. More than 75% of global platinum is mined in South Africa.In econometric and volatility analysis, platinum is shown effective safe haven and hedging properties against downturns in international equities markets

Latest Platinum Price in Indian Rupees.

Date Time Price Unit Change Low High

2016/08/30 20:45 71,139.52 Ounce -1,121.00 -1.55 % 71,139.52 72,453.11

2,287.19 Gram -36.04 2,287.19 2,329.42

2,287,188.55 Kilo -36,040.85 2,287,188.55 2,329,421.68

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Palladium as an investment

Palladium as an investment is much like investments in other precious metals. More than 75% of global platinum and 40% of palladium are mined in South Africa. Russia's mining company Norilsk Nickel produces another 44% of palladium, with the US and Canada-based mines producing most of the rest. The global palladium sales were 212,000 kg in 2009, about 5% less than those in 2008. About 45% of the total output was used by the auto catalyst industry, about 19% by the electronics industry, and about 12% by the jewelry industry ("white gold" is an alloy of gold and palladium). The rest was used in such industries as chemical, dental, investment, and others. In econometric and volatility analysis, palladium is shown effective safe haven and hedging properties against downturns in international equities markets.

Latest Palladium Price in Indian Rupees.

Date Time Price Unit Change Low High

2016/08/30 20:45 45,965.86 Ounce -899.47 -1.92 % 45,965.86 47,029.43

1,477.84 Gram -28.92 1,477.84 1,512.03

1,477,836.83 Kilo -28,918.73 1,477,836.83 1,512,031.22

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Advantages of Precious Metals investment

Precious Metals Can Hedge Against Inflation

Precious metal investing is becoming more common, especially in these tough economic times when other investments are losing money. Precious metals make the perfect solution for your investment capital because over the last decade these prices have gone through the roof, and show no signs of coming down any time soon. In the past, when inflation rises so does the value of precious metals, so this investment will help you hedge against future inflation. This makes these metals ideal for a large number of investor.

Precious Metals Are Global Currency Precious metals have been used around the world for many centuries as currency. If you have possession of the precious metals you can get currency anywhere in the world, making these metals very versatile no matter where you are. This is only true though if you actually invest in metals that you keep in your possession, and not in precious metal funds or precious metal stocks. These other methods can also be easily sold, it just requires more time and effort.

Precious Metal Investments Are Very Liquid And Marketable Precious metals trading can be a great way to boost the liquidity and marketability of your investments. Because of the high demand that the precious metals market experiences almost continuously, these investments can normally be sold very quickly and easily. This may not be true if you buy bars of large weights though, because you may need to find an investor who trades on a large scale basis. Most precious metals investments can be easily liquidated though, making them ideal.

Precious Metal Investments Can Diversify Your Portfolio Investment portfolio diversification is important, and precious metal investing can help you diversify your portfolio to minimize risks and maximize returns. Because many of these investments are considered low risk, you can add them to raise the trading stability and lower the trading volatility for your investments. This will allow you to realize small gains even if some of your investments are not doing so good.

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You Can Take Possession Of Your Investment With an investment in precious metals, you can actually take possession of your investment. If you choose coins, bars, bullion, or other physical forms of precious metals, you can keep your investment secure and safe, and in your possession. No other type of investment allows for a large investment to be physically kept by you. This does have risks involved as well though, because your entire investment could be stolen if you do not keep it in a secure place like a safe deposit box.

There Are A Number Of Precious Metals To Choose From Precious metal investing offers a wide variety of metal options. You can choose to invest in gold, silver, platinum, or any other precious metal. This allows you to create a unique investment strategy that is tailor made to your investment needs and precious metals preferences. You can choose to invest in one precious metal or all of them, using precious metal funds which invest in more than one metal type.

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11. 8 Attractive Tax Free Investment Schemes in India

Today every other individual is searching for tax free investments but most of them end up choosing the wrong tax saving schemes. This happens because there’s a flurry of different tax saving financial investment schemes available in the market today. In order to choose the best of the lot, you need an efficient financial planning and a strategic approach. You can save a lot of your tax money if you have a smart financial investment plan under your sleeve.

Investing your money with proper financial planning and smart approach can fetch you great returns. Let me give you a list of 8 smart tax saving investments that you must opt to earn maximum return without losing a lot of money on tax.

1. Public Provident Fund (PPF)

On the top of the list is Public Provident Fund (PPF). Highly recommended by Government of India, the PPF scheme offers great interest rates and returns that qualify for 100% tax exemptions. The Public Provident Fund (PPF) is ideal for investors, self-employed professionals and other employees who are not covered under any Employees Provident Fund or other benefits. Deposits made to Public Provident Fund are tax deductible in India under Section 80C of Income Tax Act, 1961 which makes it an ideal investment to gain better returns with tax saving options and guarantee of a secured future.

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2. Unit Linked Insurance Plan

ULIP (Unit Linked Insurance Plan) is a financial scheme that offers both benefits of insurance and investment in addition to tax saving options under Section 80C. Being said that, ULIPs can also be risky if you don’t read the terms and conditions such as your policy may be discontinued if you miss a premium. However, you can get a lot of options and features under ULIP scheme under which you could switch between various funds, reduce or increase the level of protection, options to surrender, additional riders to enhance coverage and returns as well as tax benefits during the tenure of the policy.

3. New Pension Scheme

More than a tax free investment plan, New Pension Scheme is considered as an ideal option for retirement planning. An individual can invest in New Pension Scheme if he or she is aging between 18 and 55 years but the tax deduction criteria is only fulfilled for contributions to a tier-I NPS account with a minimum annual investment of Rs. 6,000 a year under the condition of no premature withdrawals til the age of 60.

4. Pension Plan

Many Life Insurance companies and Banks are offering Pension Plans with tax deduction schemes under Section 80C of Income Tax Act since 2013. Such pension plans are not only beneficial to save tax but also secures your future. However, you must be wise to make choices while opting for these Pension Plans as the fund management charges are considered very high with the Pension Plans offered by Life Insurance Companies in comparison to the Government owned national pension scheme.

5. Rajiv Gandhi Equity saving Scheme

Aimed at encouraging savings from small retail investors to enter domestic capital markets, Rajiv Gandhi Equity Savings Scheme (RGESS) was introduced by P. Chidambaram on 21st September 2012. Currently one of the best tax saving investment in India, RGESS was introduced to promote “equity culture” in India. Under this scheme, investments are allowed up to a maximum of Rs. 50,000 out of

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which 50% is tax deductible. Also, there is a tax benefit of up to Rs. 1.5 lakh permitted by Section 80C of Income Tax Act.

6. Life insurance policies

Insurance policies are considered to be the best for investment because of its tax saving benefits. For a life insurance policy covering the individual and his or her immediate family, the premium paid is deductible up to Rs. 1 lakh under Section 80C of the Income Tax Act. The deductions are applicable for both cash-back endowment plans and term insurance plans. The only condition is that you must regularly pay the premium for the rest of the term once you get the policy.

7. National Savings Certificates

Although it generates low returns in comparison to bank fixed deposits, Nation Savings Certificate are safer as it is a savings bond issued by the Government of India and the money remains with them. You can get tax benefit under section 80C for an investment up to Rs. 1 lakh in National Savings Certificate. In addition to this, there is also an extra tax benefit for NSC investment scheme where the amount earned as interest is reinvested and considered as a part of the tax deduction scheme.

8. Equity Linked Savings Scheme

Popularly known as ELSS, Equity Linked Savings Scheme is a type of mutual fund investment scheme with a lock-in period of 3 years which in fact is the shortest period among all tax saving instruments covered under Section 80C of Income Tax Act. Although mutual funds investment often carry a moderate amount of risk as the returns are dependent on the performance of stock markets, these investments are tax free and equally rewarding. However, the returns are highly dependent on the financial sentiment of the markets, so invest in Equity Linked Savings Scheme at your own risk.

Opt for any of the above 8 smart investing plans and secure your future. All the above investment schemes are highly popular and safe with guaranteed results offering tax free features.

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12. 8 Profitable Investment Ideas in India for Higher Returns

India is a developing country and it is seen that day by day Indian economy is booming. The global markets have already noticed this boom in India and the direct result is the Foreign Direct Investment (FDI) in the country. As an Indian, it’s high time to invest your hard earned money into different profitable investment plans in the country.

Most of the Indians believe in savings rather than investing to gain profits. Such an attitude has always restricted economic growth of our country too. Hence, it is very important as the citizen of this country to invest under different schemes smartly to get higher returns altogether and help the economy to boom.

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Today, I have compiled a list of investment options which can help you get higher returns:

1) Investing in Stock Market: This may sound foolish to many who have worked hard to save all those money. I won’t question your judgment. In fact, I agree with you that investing in stock market can be risky. However, it is risky only if you buy stocks blindly and wish that it will boom. That’s not how the stock market works.

Investing in stock market need a lot of research, analysis and patience. Currently, the risks involved in Share Market investments are high and the smartest way to find good stocks is to look for low beta value. Beta value of the stock indicates the volatility of stock compared to the Sensex.

Investing in low beta value stocks results into low risk compared to other stocks when the market reaches the peak. Stock markets are like Slides in the playground. Once the market reaches the peak, there’s a high risk for the market to slide down. Hence, it is pretty much essential to analysis the market status and research about the good stocks in depth and choose them wisely. In stock market investments, you can gain higher returns but you should be patient yet alert all the time.

Never invest everything into a single stock or never invest every single penny of your savings into stock market. Start with investing small amounts and that too into different stocks, so if one stock fails you can still gain returns from other stocks.

2) Mutual funds investment: Much like stock market investment, mutual funds investment also relies on the performance of SENSEX. The only difference between Stock Market investment and Mutual Funds investment is the risk factor. Mutual Funds investment follows the principle of SIP (Systematic Investment Plan) where you are at the lowest risk of the market volatility and hence it’s safer to invest in mutual funds than stock market.

Being safe doesn’t mean there are no risks involved in mutual funds investment. A bit of caution is necessary in these investments too. Make sure that you never investment huge amount of money through lump sum investments schemes offered by equity mutual funds. Instead, you must opt for balanced funds, debt funds, liquid funds and ultra-short term funds to invest. You can also look for top performing mutual funds in the market through SIP and choose them for Mutual Funds investment.

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3) Tax Saving Investment Options: Lately, to boost the investment trend many finance institutions in India have come up with some profitable tax savings investment schemes that helps you save tax u/s 80C for the income generated from such transactions. Investment schemes such as ELSS Mutual Funds, PPF, NSC, 5 year Tax Saving FD schemes etc. fall among the tax saving investment plans in India. In fact, investing money in ELSS mutual funds will provide benefits of equity stock’s growth as well as tax benefits with lock-in period of 3 years.

4) Investment in Secured Non-Convertible Debentures (NCD): Most of us are reluctant in investing Company’ FDs or NCDs because of obvious reasons. In the past, many have lost money as the companies have cheated the investors under such schemes. Today, to encourage Non-Convertible Debentures (NCD), many companies are introducing Secured NCDs that carry less risk compared to other NCD investment options available out there. Investing your funds in secured NCDs can get you risk-free higher returns in the long run.

5) Bank Fixed Deposits/Recurring deposits: Out of all, Bank Fixed Deposits schemes are 100% risk free with guaranteed returns. These are the safest investment options available out there and offers guaranteed returns at better interest rates.

Lately, many banks have introduced Recurring Deposits schemes where you can opt to deposit a set amount every month which will be debited from your account directly. Such Recurring Deposits schemes gives you the benefits similar to FD at any time you wish to withdraw the money.

6) Invest money in IPOs: As discussed earlier, Indian economy is booming day by day. Many companies and startup organizations are being set up in the country. With the support of Venture Capitalists and Angel Investors, these startups are also going public and coming up with their IPO (Initial Public Offer) within no time. In 2013, such IPOs have generated more than 65% returns on the investment.

Thus, investors who can take risks could invest in such IPOs. Currently in India, IPOs are the best mode of investment in order to gain high returns. Don’t choose the IPOs blindly though. Research about the company and analysis their growth structure and once satisfied only then look forward to invest in their IPO.

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7) Invest your money in real estate: Since the past 2-3 decades, Real Estate market in India has seen unbelievable growth in terms of infrastructure as well as returns. Although, the market is quite competitive in the metro cities of the country, you still have the options of investing your money in the real estate development zones of 2nd tier cities. Real Estate is the only market that guarantees returns in double or triple of your money in a span of 5 to 20 years.

Real Estate Investments are considered ideal investments to secure your future. Once you have your own real estate property, you can either use it for yourself or let it out for rent and earn recurring rental income every month.

8) Invest your money in Gold: Gold is not only considered as auspicious metal in the Indian culture but it also stands among top investment options in India. In the past, Gold was procured by people to help them during the worst times. People facing loses due to natural calamities could sell their gold to get food for their families. Hence, since then Gold was always considered auspicious in Indian culture and the tradition of investing in Gold still prevails in the country.

Irrespective of the spiritual side, the returns from investment in Gold is also high in the long run. In the past 2 decades, the Gold rates have seen a rise from Rs. 3000 to Rs. 30000 per 10gm. Lately, the Gold rates have declined but the trade pundits have assured that there’s nothing to worry about and also advised that it’s the right time to invest in Gold because of the decline as the rates are soon going to rise again.

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13. Conclusion

Investing money in any scheme have its own risk value. The risk factor attached with any investment option is directly proportional to the quality of returns it promises. Hence, if you are investing in Share Market or Real Estate which promises the highest returns, the risk involved also rises to its peak.

So, while choosing your investment options you must check each factor associated with it whether its risk factor, market volatility, public opinion as well as suggestions trade pundits. Before investing, clear your mind whether you are looking for a long term investment or short term investment.

Once you have considered all these factors, you are ready to choose the right investment option for your hard earned money.

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14. Bibliography

INTERNET;

https://www.bankindia.org/category/investment-ideas

http://business.mapsofindia.com/insurance/top-ten-insurance-

companies.html

http://www.bullion-rates.com/gold/INR/Year-5-chart.htm

https://www.bankbazaar.com/fixed-deposit/5years-fd-interest-rates.html http://www.licindia.in/Products https://www.policybazaar.com/life-insurance/investment-plans/articles/top-10-financial-investment-options-in-india/

NEWS PAPERS;

Times of India

Business Today