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 Few Investment Options in India which assure safe and satisfactory returns.

1. Investments in Bank Fixed Deposits (FD)

Fixed Deposit or FD is accrues 9.25% of annual returns for non-senior citizen, 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, current rate of return is average 10% annual.

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 Public Provident Fund (PPF)

Like NSC, Public Provident Fund (PPF) is also supported by the Indian government. An investment of minimum ` 500 and maximum INR. 100,000 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 nationalized 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%.

4. Investments in Stock Market

Indian Stock market is very fluctuating. A smart portfolio positioned for long-term growth includes strong stocks from different industries. Before investing in stock market one should be prepared to assume risk equivalent to sum invested in the 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.

5. 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. One should select mutual fund schemes based on all or some of the following criteria: Long term and Short Term Performance Consistency in Returns Performance during bullish and bearish phases Fund Managers performance with the fund's operations A simple way to select a mutual fund scheme to invest in is to select a 5 star or 4 star rated fund from one of the following rating agencies: ICRA Ratings Value Research Online Moneycontrol

6. 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.

7. 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.

8. Investments in Equity
Private equity is a type of asset consisting of equity securities in private companies that are not publicly traded on stock exchange. A private equity investment will generally be made by a private equity firm, a venture capital firm or an angel investor. 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. As ranked by the PEI 300, the 10 largest private equity firms in the world are: 1.TPG Capital 2.Goldman Sachs Principal Investment Area 3.The Carlyle Group 4.Kohlberg Kravis Roberts 5.The Blackstone Group 6.Apollo Global Management 7.Bain Capital 8.CVC Capital Partners 9.First Reserve Corporation 10.Hellman & Friedman

9. 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.

10. Investment in Debentures

A debenture is a document that either creates a debt or acknowledges it, and it is a debt without collateral. In corporate finance, the term is used for a medium- to long-term debt instrument used by large companies to borrow money. In some countries the term is used interchangeably with bond, loan stock or note. A debenture is thus like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company's capital structure, it does not become share capital.[1] Senior debentures get paid before subordinate debentures, and there are varying rates of risk and payoff for these categories. Convertible debentures, which are convertible bonds or bonds that can be converted into equity shares of the issuing company after a predetermined period of time. "Convertibility" is a feature that corporations may add to the bonds they issue to make them more attractive to buyers. In other words, it is a special feature that a corporate bond

may carry. As a result of the advantage a buyer gets from the ability to convert, convertible bonds typically have lower interest rates than non-convertible corporate bonds
Non Convertible Debenture

(NCD in short) is a low to moderate risk debt instrument issued by companies, for a fixed maturity period at a fixed rate of interest. NCDs cannot be converted into equity of the issuing company unlike convertible debentures which can be converted into equity of the issuing company at a future date.
Debentures versus Bonds

Technically speaking, bonds and debentures dont have much of a difference. Fixed income instrument issued by the Government and Government run institutions are known as bonds. The ones issued by companies are called debentures.
Debentures versus Fixed Deposits

Fixed deposits, whether company or bank, are non-transferable and thus not influenced by changes in interest rates. They cannot be sold unlike NCDs which could be listed on a stock exchange and thus be sold. Where NCDs can be secured, corporate FDs are unsecured and bank FDs are secured up to Rs. 1Lakh.
Key Features and Benefits of NCD Issuance and trading:

NCDs are issued and traded in demat form. Returns: NCDs are ideal for conservative investors who seek higher returns but are risk averse. Returns are generally in the range of 11 to 12%, depending upon the company. Safety: NCDs are relatively safer than company FDs. They possess low to moderate amounts of risk depending upon the company. NCDs could be secured or unsecured. Secured NCDs are secured against the assets of the company. In other words, in case of a default, these investors will be paid back first, by selling some of the assets of the company. In case of unsecured NCDs, there is no security for repayment of principal or interest. Liquidity: Investors could liquidate NCDs by either selling it on the stock exchange or by exercising the Call or Put Option. Tax Implication: There is no Tax Deducted at Source (TDS) on NCD investments. However for NRI investors, there is a TDS deduction. The interest income of an NCD is taxed at normal rates and is included under Income from other sources. They are also subject to capital gains tax when sold at the stock exchange. 11. Post office Post office monthly income Scheme is specially made for the purpose of providing regular pension to the investors. It offers 8% per annum, paid on monthly basis. Maximum limit for investment is Rs. 4.5 lakh and maturity period is 6 years. It can be prematurely enchased after 1 year but before 3 years at the discount of 2% and after 3 years at the discount of 1%. The option is not available for NRIs Investment.

12. National Savings Certificate (NSC)

National Savings Certificate is an Investment alternative developed by Government of India with an intention to induce persons to a saving habit and to develop National Savings. National Savings Certificate is issued through Post Offices; they are the nodal agency which makes it available to the common public. National Saving Certificates in India is ranked as highly secured in the class of Investments. It is an Investment which has Tax Advantage while (i) Investing, (ii) during the life and (iii) at the time of maturity of the Investment. The enactments of parliament which governs National Saving Certificates in India are The Post Office National Savings Certificates Ordinance, 1944, National Savings Scheme, 1992 and NSC (VIII) Issue Rules, 1989.

Features of NSC Saving Certificate:

National Savings Certificate is available in denominations of 100, 500, 1000 and 10000. This means that, an investment in NSC India can be done even with Rs. 100/-. There is no upper Limit to invest in National Savings Certificate. This means you can invest in NSC India any amount of money as there is no ceiling limit for investment. The maturity period of NSC India is 6 years. The Rate of Interest on NSC India is 8% p.a. cumulated half yearly. Pre closure is available for National Savings Certificate after the completion of 3 years. On payment of nominal fees, National Savings Certificate can be transferred to any person. Transfer from one branch to another is also possible.

Advantages of National Saving Certificate

National Saving Certificates in India are Highly Secured Investment, since it is secured by Govt. of India. National Savings Certificate has a guaranteed rate of return of 8% p.a. (cumulated half yearly) National Saving Certificates in India are easily available from all post offices, in denominations of Rs. 100/The principal amount which is invested in NSC India is eligible for tax benefit under 80C Interest which accrues all through the life of National Savings Certificate will be deemed to be re invested, and therefore Accrued interest on NSC will also be considered as invested in National Savings Certificate and therefore the interest accrued will be eligible for benefit under 80C.

The interest received at the time of maturity from National Saving Certificates in India will not be subjected to TDS. NSC India Deposits will not be considered as assets U/s 2 (ea) of Wealth Tax Act 1957.

How to Start an NSC?

Following are the conditions to purchase a National Saving Certificates in India:

Should be an Indian Resident Should be an Individual or Trust

If you satisfy the above two conditions, then you may approach your nearest Indian Post Office and make a requisition for the same. Investment in NSC India can be made in the name of Single Holder, Joint name or in the name of Minor Child.

13. Unit Linked Insurance Plan

A unit-linked insurance plan (ULIP) is a type of life insurance where the cash value of a policy varies according to the current net asset value of the underlying investment assets. It allows protection and flexibility in investment, which are not present in other types of life insurance such as whole life policies. The premium paid is used to purchase units in investment assets chosen by the policyholder. In India investments in ULIP are covered under Section 80C of IT Act. However, the concept of having an investment is governed by the Insurance Regulatory and Development Authority (IRDA).

ULIPs are available in 3 broad variants listed below:

1. Aggressive ULIPs - Invest up to 100% of their corpus in equities. 2. Balanced ULIPs - Invest up to 60% of their corpus in equities and balance in debt market. 3. Conservative ULIPs - Invest up to 100% of their corpus in debt instruments and the money market instruments. Individuals are free to decide where they want to invest their money. For example, individuals with an appetite for risk can invest their entire money in equities while conservative individuals have the option to park their money in balanced or conservative ULIPs.