Ways to Invest your Money

It’s a new year for the corporate industries and the private sectors but at the same time it’s a new year for the investors who are likely to spend their surplus income in some or the other effective high return schemes.

There are many ways where investments can be made. Following are some of the sources where one can allocate its capital:

Investments in Bank Fixed Deposits (FD)

The term Fixed Deposit refers to a savings account or certificate of deposit that pays a fixed rate of interest until a given maturity date. Funds placed in a Fixed Deposit usually cannot be withdrawn prior to maturity or they can perhaps only be withdrawn with advanced notice and/or by having a penalty assessed.

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.

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 option

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

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.

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.

Investments can also be made on the resources like Equity, Public Provident Fund (PPF), Non Resident Ordinary (NRO) funds, National Saving Certificate (NSC), etc.

The year is crucial so is your money. Hence invest it smartly and spend it easily.