I would suggest following avenues for investing your family's capital :
1) If there is any senior citizen in the family, go for Senior Citizen Saving Scheme...this is a scheme of Govt of India and the money is secured.This is the best scheme and most secured for your mother who I guess must be a senior citizen ( above 60 years age ) You can put Rs 15 L max in this and it pays 8.7 % as of now.
2) Look for short term liquid funds or bond funds of some good mutual funds...they have no equity risk.The returns after tax are better than bank FDs. Spread the amount in 2-3 funds.
3) Invest small amounts of 2-3 L each in Non Convertible Debentures of some good companies...currently Shriram Transport Finance is having a NCD issue open.
4) Invest in some good companies FDs ...like Bajaj Finance, Shriram Transport Finance etc...put small amount 2-3 L in each , dont put big amount so that the risk is spread....they are safe and they pay 9.25-9.5 % pa
5) Govt bonds are also good but they will have low returns....I have invested only in Capital Gains Tax saving bonds which pay only 6 % pa....other bonds I have never invested.
Smart_trade
1) If there is any senior citizen in the family, go for Senior Citizen Saving Scheme...this is a scheme of Govt of India and the money is secured.This is the best scheme and most secured for your mother who I guess must be a senior citizen ( above 60 years age ) You can put Rs 15 L max in this and it pays 8.7 % as of now.
2) Look for short term liquid funds or bond funds of some good mutual funds...they have no equity risk.The returns after tax are better than bank FDs. Spread the amount in 2-3 funds.
3) Invest small amounts of 2-3 L each in Non Convertible Debentures of some good companies...currently Shriram Transport Finance is having a NCD issue open.
4) Invest in some good companies FDs ...like Bajaj Finance, Shriram Transport Finance etc...put small amount 2-3 L in each , dont put big amount so that the risk is spread....they are safe and they pay 9.25-9.5 % pa
5) Govt bonds are also good but they will have low returns....I have invested only in Capital Gains Tax saving bonds which pay only 6 % pa....other bonds I have never invested.
Smart_trade
Thanks a lot for detailed reply.I will look into those options.
What about Post office saving schemes? I have seen 5 year TERM DEPOSIT GIVES SOME 7.8% return..I want to know the deposits with post office time deposits Are safe? I mean is our principal amount is safe & who gives gurantee of principal & intrest in post office schemes?I am more intrested in saving of capital than return of capital..Protection of capital is more important , even supreme
thanks
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