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  1. 1.PPF is good interest abt 8 % , Tax benefit exists. Withdrawal difficult.
    2. Keep in Unitech, Ansal etc who r giving high interest . Safe. Enquire with them via internet.

  2. invest in PPF for safe returns.. also u can invest a small part in MF like hdfc top 200 to get higher returns..

  3. There is no such thing as SAFE INVESTMENT. All investments carry different kinds of risk.

    In equity related investments , risk is obvious.

    Let us say , if you invest in PPF you get a tax free return of 8 %. Your principal is safe. But if real inflation is 10% , your investment is growing negatively. This risk , most people do not see.

    So ideally , you should invest in all avenues. If you are young , a major portion of your long term investment can go towards equity. As you get older, your investment in equity can come down gradually.

    Not investing in equity at all , you run the greatest risk.

    Having said this, PPF is a good avenue for tax saving. It is a good pension fund. Invest as much as you can ( max 70,000) as early as you can every year. ( before April 5th – gives you interest for full year )

    Create a corpus for retirement. After retirement you can pay Rs 500 each year to keep account alive , and withdraw the yearly interest as tax free pension.

    So do not close your PPF ever. The nominee will close it. You can keep renewing in 5 year blocks after the initial 15 years.

    For tax saving go for a combination of PPF & ELSS.

    For Insurance , go for PURE TERM COVER.

    Visit http://www.aegonreligare.com for insurance & http://www.valueresearchonline.com to understand mutual funds.

  4. HI,

    You rightly said that ULIPS in insurance companies carry high rate of hidden charges for instance one of them is mortality charges which are clubbed in with the plan!!. and the end of ur term u will end up making 6-7% over your investment…but than thats good if you are looking for life insurance as a major aspect and also some tax benifit!! investment in bonds and govt securities can be a slow but stedy growth option… but the best way of investment is trading in share market with little amount and constant guidance!!! if u need help call on 9743192724 i will give u a brief of what u can do!! cheers