Investment Options Available For Investing Money

There are many investment options available to invest money. While investing, you must need to be consistent and stick to your plan. Find out the different investment options as per your risk appetite. The type of investment depends on the need and time horizon you have. If you want to invest for retirement, there will be different investment options, that has already been covered in Retirement Planning section, and if you want to invest for some other purpose like to buy a luxury car after certain number of years, there will be different ways to invest your money. If you want to know, where you should invest your money or what are the investment options available, then here you will come to know about different savings and investment options you have. To invest your money, you should first understand your requirements and decide which investment options are suitable for you and your needs. One thing you must do while investing is to invest in different investment instruments and make a diversified portfolio. Have a look at the number of basic investment options you have, to invest and grow your money.

Analysis of various investment options

Analysis of various investment options

Analysis of various investment options

S.No. Domestic Saving Invesment Instruments SAFETY SECURITY Rate of Return on Investment 8-10% Compounding 8-10% Compounding. Average on other Instruments

LIQ

Banking Sector - FDs Post Off - PPFs, POMIS, KVPs

Investment Guarantee

Controlled by RBI

Penalt

Investment Guarantee

Controlled by Central government guidelines

Penalt

Govt / Infrastructure Bonds

Investment Guarantee

Controlled by Central government guidelines

6-8% Compounding

Trade

Mutual Funds / Shares

Market Related Risks

Controlled by SEBI

Average of 15-18% over a 8-10 Yr Platform

Anytim

Equity Linked Savings Schemes offered by Banks. Real Estate - Flats / Buildings Real Estate - Plots Gold / Precious Stones

Market Related Risks

Controlled by SEBI

Average of 15-18% over a 8-10 Yr Platform

Anytim

Investment Guarantee + Appreciation Investment Guarantee + Appreciation Investment Guarantee + Appreciation

Economic Values / Social Threat Economic Values / Social Threat Economic Values / Social Threat

Average of 25-40% over a 8-10 Yr Platform Average of 25-40% over a 8-10 Yr Platform Average of 20-30% over a 8-10 Yr Platform

Dema r

Dema r

Anytim

Life Insurance Products

Investment Guarantee

Strict controls by IRDA Board of Indian Govt

15-18% compounding over a 10-20 Yr

Penalt

10

Unit Linked Insurance Products

Investment Guarantee

Strict controls by IRDA Board of Indian Govt

15-18% compounding over a 10-20 Yr

Penalt

Top 10 Investment Options in India

While some plans accrue short term profits some are long term deposits. The first step towards investing in Indian market is to evaluate individual requirements for cash, competence to undertake involved risks and the amount of returns that the investor is expecting. Below are Top 10 Investment Options in India which assure safe and satisfactory returns.

1. Investments in Bank Fixed Deposits (FD)

Fixed Deposit or FD is accrues 8.5% of yearly profits, depending on the bank's tenure and guidelines, which makes it's widely sought after and safe investment alternative. The minimum tenure of FD is 15 days and maximum tenure is 5 years and above. Senior citizens are entitled for exclusive rate of interest on Fixed Deposits.

2.

Investments in Insurance policies Insurance features among the best investment alternative as it offers services to indemnify your life, assets and money besides providing satisfactory and risk free profits. Indian Insurance Market offers various investment options with reasonably priced premium. Some of the popular Insurance policies in India are Home Insurance policies, Life Insurance policies, Health Insurance policies and Car Insurance policies. Some top Insurance firm in India under whom you can buy insurance scheme are LIC, SBI Life, ICICI Prudential, Bajaj Allianz, Birla Sunlife, HDFC Standard Life, Reliance Life, Max NewYork Life, Metlife, Tata AIG, Kotak Mahindra Life, ING Life Insurance, etc.

3.

Investments in National Saving Certificate (NSC) National Saving Certificate (NSC) is subsidized and supported by government of India as is a secure investment technique with a lock in tenure of 6 years. There is no utmost limit in this investment option while the highest amount is estimated as ` 100. The investor is entitled for the calculated interest of 8% which is forfeited two times in a year. National Saving Certificate falls under Section 80C of IT Act and the profit accrued by the investor stands valid for tax deduction up to ` 1, 00,000.

4.

Investments in Public Provident Fund (PPF) Like NSC, Public Provident Fund (PPF) is also supported by the Indian government. An investment of minimum ` 500 and maximum ` 70, 000 is required to be deposited in a fiscal year. The prospective investor can create it PPF account in a GPO or head post office or in any sub-divisions of the centralized bank. PPF also falls under Section 80C of IT Act so investors could gain income tax deduction of up to ` 1, 00,000. The rate of interest of PPF is evaluated yearly with a lock in tenure of maximum 15 years. The basic rate of interest in PPF is 8%.

5.

Investments in Stock Market Investing in share market yields higher profits. Influenced by unanticipated turn of market events, stock market to some extent cannot be considered as the safest investment options. However, to accrue higher gains, an investor must update himself on the recent stock market news and events.

6.

Investments in Mutual Funds Mutual Fund firms accumulate cash from willing investors and invest it in share market. Like stock market, mutual fund investment are also entitled for various market risks but with a fair share of profits.

7.

Investments in Gold Deposit Scheme Controlled by SBI, Gold Deposit Scheme was instigated in the year 1999. Investments in this scheme are open for trusts, firms and HUFs with no specific upper limit. The investor can deposit invest minimum of 200 gm in exchange for gold bonds holding a tariff free rate of interest of 3% - 4% on the basis of the period of the bond varying with a lock in period of 3 to 7 years. Moreover, Gold bonds are not entitled of capital gains tax and wealth tariff. The sum insured can be accrued back in cash or gold, as per the investor's preference.

8.

Investments in Real Estate Indian real estate industry has huge prospects in sectors like commercial, housing, hospitality, retail, manufacturing, healthcare etc. Calculated realty demand for IT/ITES industry in 2010 is estimated at 150mn sq.ft. around the chief Indian cities. Termed as the "money making industry", realty sector of India promises annual profits of 30% to 100% through real estate investments.

9.

Investments in Equity Private Equity is expanding at a fast pace. India acquired US $13.5 billion in 2008 under equity shares and featured among the top 7 nations in the world. In 2010, the total equity investment is predicted to increase upto USD 20 billion. Indian equities promise satisfactory returns and have more than 365 equity investments firms functioning under it.

10. Investments in Non Resident Ordinary (NRO) funds Investing in domestic (NRO) is one of the best investment alternatives for NRIs who wish to deposit their income accrued abroad and maintain it in Indian rupees. The deposited amount along with the interest is completely repatriable. Investment can be done in Indian financial institutions including the Non Banking Finance Companies which are listed with RBI. The interest returns accrued on in this account is entitled under IT Act and is subject to 30% tax reduction at source including the appropriate surcharge and education cess. The NRI investor can repatriate upto USD 1 million every year, for genuine reasons, by forfeiting valid tariffs.

Investment Companies

1. Bajaj Allianz
Collaboration between Bajaj Finserv and Allianz SE, Bajaj Allianz Life Insurance Co. Ltd. is India's internationally renowned asset management company, administering wealth worth over a trillion. Offering life, general and travel insurance in more than 70 nations, the firm is recognized as the fastest expanding insurance consultants in the world. The various customized services offered by Bajaj Allianz are insurance and investment solutions assisted by advanced technology and management. Some of the investment policies and products proffered by the firm are: Unit Linked Plans, Pension Plans, Traditional Plans, Women Insurance Plans, Health Plans, Group Plans, Micro Insurance, etc. Contact Details Bajaj Allianz Life Insurance Co. Ltd. GE Plaza, Airport Road Yerawada, Pune - 411006 Website: www.bajajallianzlife.co.in 2. HSBC Asset Management India Pvt Ltd Outstanding investment solutions along with an excellent track record have made HSBC Global Asset Management Pvt ltd one of the leading fund management institutions in the world. The company has assets worth USD381.4 billion under its supervision across the globe and offices in around 20 nations. It offers an all inclusive range of investment management services such as Mutual Fund and Portfolio Management to its varied patrons and is dedicated to executing steady endowment performance along with world class products for all kinds of investors. Contact Details 52/60, M.G.Road, Fort Mumbai - 400001 Maharastra Phone No: 022 66668819

3. SMC Investment Solution and Services India's recognized fiscal service provider, SMC Investment Solution and Services is an incorporated firm offering investment solutions across India. In the recent past, the group has been successful in expanding its business operation in international location. At present it has more than 1500 branches spread across 350 Indian cities. Contact Details 16, 2nd Floor, Sivasakthi Complex, S N High Road Tirunelveli - 627001 Tamil Nadu India Phone No: 0462 - 9442550893 4. Shah Financial Group Shah Financial Group was initiated in the year 2004 and is currently involved in distribution trade of individual business, finance and home finance through several financial institutions, banks, FOREX, SENSEX, Debentures buying and selling, Exim, NRI investment, external business loans, etc. The group also offers fiscal, tax relief and finance enhancement facilities to its corporate and non-corporate clients. Contact Details 380 Sec 21, Block D Faridabad, Haryana - 121001 Website: http://www.shahgroupindia.com 5. Stanrose Mafatlal Investment and Finance Ltd The chief activity of Stanrose Mafatlal Investments & Finance Limited is to offer investment supervision facilities to its varied clients. It functions through its subordinate Stanrose Mafatlal Lubechem Limited in the capital market and is involved in inter-corporate endowments, fund market operations and financing. Contact Details Popular House, 6th Floor, Opp Swastik Super Market, Ashram Road Ahmedabad - 380009

Gujarat Phone No: 079 - 26581887 6. Tata Investment Corporation Ltd. Endorsed by Tata Sons, Tata Investment Corporation Limited (TICL) was established to help the sponsorship of new firms and schemes besides indulging in investment activities. In collaboration with Tata Sons, TICL endorsed Tata Mutual Fund and became the chief shareholder of Tata Securities. The firm is now involved in the allocation of mutual funds and other endowment linked securities. A non-banking financial company (NBFC), TICL is certified with the RBI under the category of 'Investment Firm'. Contact Details #Ewart House, 22, Homi Mody Street Fort, Mumbai, Maharastra-400001 Phone: +91-22-56658282 7. Toss Financial Services Pvt. Ltd. A certified associate of National Stock Exchange, Toss Financial Services Pvt Ltd is the recognized Stock broking and Investment Management consultation firm in India. The firm offer consultation services in the financial sector with prominence on Indian Stock Market that entails the registered reserves, equities, mutual funds, securities and private equity allocations. Contact Details 44 Bank Street, Khatau Building, 1st Floor, Fort, Mumbai - 400001 8. Veronica Financial Services Ltd Veronica Financial Services Ltd. is an integrated investment firm that has emerged as an active player with considerable endowments in the equity capital markets. The firm is involved in locating and investing in firms facing fiscal crunch, assisting the firm in growing financially strong and eventually making it money spinning. Assisted by professionals, the firm manages the sick company and keeps a strict vigilance on its day to day functions until it attains profitability stage. Contact Details 28, Great Western Building, 1st floor, 130, Shahid Bhagat Singh Marg, Opp. Lion Gate, Fort, Mumbai - 400 023 Tel.: 91-22-22818202 / 03

9. Indian Investment Centre Indian Investment Centre is a certified group operating under the managerial control of Ministry of Finance. The firm endorses NRI investment as well as foreign private investment and is a nodal society for endowments by non-residents and PIOs (Persons of Indian Origin). IIC offers assistance and data on Indian Government's investment schemes, methods, accessibility of infrastructural services, inducements, investment prospects and extends associated with consultation services. Contact Details Department of Economic Affairs, Ministry of Finance, Jeevan Vihar, Parliament Street, New Delhi - 110 001 10. J.M. Capital Management Private Ltd J.M. Capital Management Private Ltd (JMCM) manages capital for both organizational and individual investors present in India as well as abroad. The firm has one of the biggest distribution channels with each symbolizing a large segment of retail customers with endowment excess and concentrates on quality survey of the market with prominence investment alternatives. Contact Details 5th Floor, A Wing, Laxmi Tower, Bandra-Kurla Complex, Mumbai, Maharastra-400051 Phone: +91-22-39877777

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OBJECTIVE OF THE STUDY : OBJECTIVE OF THE STUDY To understand in depth about different investment avenues available in India. To find out how investors get information about the various financial instruments. To find out the saving habits of the different investors and the amount they invest in various financial instruments. The type of financial instruments, they would prefer to invest. The duration for which they would prefer to keep their money invested. The rate of return they would likely to earn from the investment.

INVESTMENT OPTIONS : INVESTMENT OPTIONS Fixed Deposits Stock Markets Mutual Funds Insurance

Investment avenues available in India : Investment avenues available in India Investment under automatic route with repatriation benefits. Investment with government approval. Investment in domestic mutual funds. Investment in bonds issued by public sector undertakings. Purchase of shares of public sector enterprises. Deposits with companies. (for a minimum period of 3 years) Investment in government securities and/or shares. Investment in non convertible debentures. Money marked mutual funds. Deposits with companies. Commercial papers.

FINDINGS : FINDINGS Therefore from the survey, whatever I got, here is the gist of all of them: People are more inclined to invest in the stock market, irrespective of the market scenario and the level of risk. Majority of the people wants higher return in short period of time that is why they prefer to invest in stock markets and mutual funds rather than any other form of investments. People between ages 30-40 think about long term returns as well as higher return in short period of time that is why they invest in stock market for short period of time and in insurance for long term return. People between ages 18-24 dont have much money to invest and they cant take higher risk, so they invest in mutual funds which are of moderate risk. People between ages 24-30 wants to be financially stable that is why they dont like to take risk at all. So, they invest in the banks fixed deposit scheme which has almost no risk and lower return.

SUGGESTIONS : SUGGESTIONS This analysis will help to strengthen investor intimacy. This analysis will also throw light on various investment avenues available in India that will help in many ways like It will help to understand the expectations of the investors about their company from the perspective of financial performance and corporate social responsibility. It will provide fresh insights which can help their business continue to flourish. The expectations of different types of investors regarding particular service requirements can be identified. The common problem areas faced by the investors can be understood.

Investment Opportunities - A Comparative Study

Hot Investment Options

Investment Restrictions

Return on Investment

Risk of Loss Liquidity

Repatriation Income & sale proceeds (Post tax) Free

Mutual Funds

No Restriction Equity Based:High Debt Based: 5-10%

Equity MediumBased: High High

Money Debt Based: MarketBased: Low 3-6% Shares/Debentures Through stock exchange (Facilities are granted on both repatriation and non repatriation basis). Real Estate No Restriction Tax exemption Low available on reinvestment of long term (> 36 months) capital gains in specified avenues No Restriction 1-5% (for NRE/FCNR based on term and currency) Up to 100% in No specific % majority of as it varies acc. sectors to business model and sector Low LowMedium

Bank Deposit

High

Free

Business

No specific Low % as it varies acc. to business model and sector

Free