Investment Plans In India

Investment should be a necessary habit of earning individuals. Small savings if not invested properly loose value due to inflation and falling purchasing power of money. In order to meet future financial needs and long term financial goals, it is desirable that money should be invested in sound financial products. Usually savings are invested in different products without checking the risk-return ratio.  Risk profile of different Financial Instruments and Investment options can be assessed by the following table in order to make an informed decision:-

Public Provident FundLowLowLong TermSmallYesLow
Post Office Savings SchemeLowLowLong TermSmallYesLow
Certificate of DepositsLowLowShort and Medium TermSmallNoHigh
Corporate Fixed DepositsModerateModerateShort and Medium TermSmallNoLow
Corporate Bonds & DebenturesModerateModerateMedium and Long TermSmallNoLow
Government BondsLowLowLong TermSmallIn some schemesLow
EquityHighHighShort, Medium and Long TermSmallNoHigh
Mutual FundsModerateModerateShort, Medium and Long TermSmallIn some schemesModerate
Gold and SilverModerateModerateShort, Medium and Long TermSmallNoHigh
Real EstateHighHighMedium and Long TermHighFor long termLow

Keeping in view the distinct risk profile of investment, choose your options wisely and stay wealthy....


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