Investment option?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2012 Dear sir,

I want to invest around 3 to 4 lacs.
I will be very thankfull, if u suggest me variou investment option, where i can invest.

CA Mahesh Vekariya

CA Mahesh Vekariya (Expert)
Follow

21 April 2012 DEAR,

YOU CAN INVEST IN THE FOLLOWING OPTIONS
1. FIXED DEPOSIT OF 5 YEARS
2. INVESTMENT IN NABARD BONDS
3.Public Provident Fund (PPF): Among all the assured returns small saving schemes, Public Provident Fund (PPF) is one of the best. Current rate of interest is 8% tax-free and the normal maturity period is 15 years. Minimum amount of contribution is Rs 500 and maximum is Rs 70,000. A point worth noting is that interest rate is assured but not fixed. Interest on PPF is proposed to increase to 8.60% and Investment Limit is also expected to increase to Rs. 1,00,000/- very soon.

4.Equity Linked Savings Scheme (ELSS): There are some mutual fund (MF) schemes specially created for offering you tax savings, and these are called Equity Linked Savings Scheme, or ELSS. The investments that you make in ELSS are eligible for deduction under Sec 80C.

5.National Savings Certificate (NSC): National Savings Certificate (NSC) is a 6-Yr small savings instrument eligible for section 80C tax benefit. Rate of interest is eight per cent compounded half-yearly, i.e., the effective annual rate of interest is 8.16%. If you invest Rs 1,000, it becomes Rs 1601 after six years. The interest accrued every year is liable to tax (i.e., to be included in your taxable income) but the interest is also deemed to be reinvested and thus eligible for section 80C deduction.

6.Provident Fund (PF) & Voluntary Provident Fund (VPF: PF is automatically deducted from your salary. Both you and your employer contribute to it. While employer’s contribution is exempt from tax, your contribution (i.e., employee’s contribution) is counted towards section 80C investments. You also have the option to contribute additional amounts through voluntary contributions (VPF). Current rate of interest is 8.5% per annum (p.a.) and is tax-free.