after some time loosing all the invested money. Here are some major investment options popular in India
Bank Fixed Deposits
This is a very common investment method. Risk is very less compared to other type of investments but return also not very high. Interest rate varies from bank to bank and depends on the scheme you choose. Tenure can be anything between 15 days to 5 years. All leading nationalized, private and co-operative banks offer fixed deposits. Different banks have different schemes and features like easy FD, cash certificate, auto renewal, free credit card with FD etc
This is another important investment option in India. Life insurance Corporation of India, a Government of India undertaking is the market leader followed by private players like ICICI Prudential Life Insurance, Bajaj Alliance Life Insurance, HDFC Standard Life, Birla Sunlife, Kotak Mahindra, Reliance Life Insurance, Tata AIG Life, Aviva Life Insurance etc
Property prices in major Indian cities are doubling in every 2-3 years so investing in property is a good idea. Investing in property is also a safe investment with good returns. Buy a flat, property or individual house is a prime area or suburbs of main cities and it will appreciate well in another few years. Getting a housing loan is not very difficult these
days. Invest in property in main cities like Mumbai, Delhi, Chennai, Bangalore, Hyderabad, Calcutta, Kochi etc.
Postal Saving Schemes
Apart from postal services like delivering letters, registers, parcels and money orders Postal department of India offers financial services like recurring deposit, postal life insurance, saving account and national saving certificate.
Investing in gold is another good option for long term. Normally gold appreciate about 17% per year. It is a very good return when inflation is about 4 to 6%. When investing in gold it is better to invest in gold coins or gold mutual funds. When you buy gold as ornaments you will loose money as making charges and wastage.
Shares and Mutual Funds
Investing in Shares and Mutual Funds are risky options but return is more. You will have to study about the company well before investing. To invest in shares you have to start a demat account first. If you have enough time to spend they study about the companies and invest wisely otherwise invest in mutual funds.
National Saving Certificate and Public Provident Fund
NSCs and PPFs are safe and secure investment method but return is less compared to current bank interest rates and share market returns.
Bonds, Chit Funds and Company FDs
Other possible investment options are bonds, chit funds and company FDs. Some chit funds and company FDs offer high interest rates but may vanish after some times. So be careful while investing in such firms.
General Investment Trends
Majority of Indians choose Fixed deposits, real estate and life insurance as their primary investment method. Also many prefers NSC, PPF and other safe investment methods to invest their hard earned money. Postal saving schemes also popular in retired people and senior citizens.