2. Investments in Corporate/Company Deposits/NCD’s

Corporate companies also provide fixed deposit schemes which can earn you good returns. These deposits are also accepted by financial institutions and Non-Banking Finance Companies (NBFCs). Apart from fixed deposits, the companies also provide Non-convertible debentures (NCD) with attractive interest rates.

Benefits of investing in Company Fixed Deposits are high interest, short-term deposits; lock-in period is only 6 months. No Income Tax is deducted at source if the interest income is up to 5, 000 in one financial year. Investment can be spread in more than one company, so that interest from one company does not exceed 5, 000.

3. Mutual Funds - Large Cap

Generally large cap mutual funds invest in blue chip companies for a long period of time. But these can also be invested for a short time frame like 3 years. Within this short period only little downside is probable in case of share market downtrend. Within last three years 10 to 13 percent yearly returns have been offered on large cap mutual funds.

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