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India investment instruments and Government backed safe investmentsBY: money | Category: Business and Finance | Post Date: 2009-06-05
Market is overwhelmed with so many investment instruments. And it always creates confusion among investors. Usually, investors don't have idea about each and every investment instruments. They always try to go with lucrative option, but they don't succeed in their motto. Because, everyone cannot be professionals. A common man in India generally go with postal saving schemes, fixed deposits or other bank deposits for their investment. They don't look beyond that. But, if they can update themselves then definitely can get a good return. One more thing is Indian investors don't want to take risks. They are risk averters not lovers. But, they always try to find best option. There are so many investment options in the market. Bank fixed deposits It is the most popular investment option in India. It yields up to 6.5% to 10% annual return depends on the Bank and period. To invest in this option minimum period is 15 days and maximum period is 7 years and above. It is a very safe investment option. Because, all banks run their operations under the guidelines of Reserve Bank of India. Postal saving schemes This option is more popular in rural India. It yields up to 4 % to 7% annual return depends on period. National saving certificate This is the safest investment option. Because, ‘National saving certificate' is come under government of India. Here, you can start your investment with 100 rupees and no upper limit. Lock in period will be 6 years. And yield will be 8% annual. You can also get income tax deduction up to one lakh rupees investment in ‘National saving certificate'. Public Provident Fund Public provident fund is also a government backed investment instrument. You can start your investment by 500 rupees and maximum 70,000 rupees in a financial year. And yield will be 8.5% annual. You can also get income tax deduction up to one lakh rupees investment in Public Provident Fund. Here, lock in period is 15 years. Mutual Funds Mutual Fund is nice option to get quick return. But, it's a risky investment option. Because, companies collect money from investors and invest in stock markets and money markets. And whatever return is come out that is distributed between investors. But, if you are ready to take risk then you can investment in stock market also. It's a great option to get more returns. But, before investing in stock markets you should have a good knowledge about its operation. Because, lots of uncertainties prevail in the market. Apart from all these instruments some more options are in the market, like, bond and debentures. It is a long-term debt instrument used by governments and large companies to obtain funds. But, investment should be done in prudent way according to their requirement and risk taking capability. Article Source: http://www.saching.com About Author / Additional Info: Information about India's investment instruments and Government backed safe investments. Public Provident Fund, National saving certificate, Postal saving schemes, Mutual Funds and Bank fixed deposits. Additional Articles: * Why You Need a Small Business Website to Grow Your Income * MUSIC MUST BE ORGANISED | Going to a music school for a good career. * Handling men who do not commit: Don't be the OTHER woman, Be THE woman! * Swimming: Medical and psychological benefits of swimming * CHARACTERSTICS OF AN ORDINARY WOMAN. By Kiran Chandra Does this article violate or infringe on your copyright ? It is a violation of our terms for authors to submit content which they did not write and claim it as their own. If this article infringes on your copyrights, then use our Contact us form with the detailed proof of infringement along with the offending article's title, URL and writer name. If you do not hear back from us then contact us again in another 10 days. Thank you. Comments on this article: (0 comments so far) * Additional comments are now closed for this article *
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