I am a newbie as far as investment decisions are concerned. I will put a more detailed question later. Right now, I need to declare my investments for this financial year in advance. I will certainly invest the entire Rs. 1 lac in some of the following -
- Life Insurance Premium*
- NSC / Accrued Interest / Postal Savings*
- Public Provident Fund*
- ULIP / Mutual Funds*
- Pension Plan
- Fixed Deposit for 5 years
- Senior Citizen Saving Scheme 2004
- Post Office Time Deposit Account and some more things not relevant to me...
Above are the options available where a maximum investment of Rs. 1 lac will be considered for tax deductions. Once, completely utilised this, a further Rs. 20000 can be invested in Infrastructure bonds.
Note - I have not yet decided what percentage exactly I will be investing in them. Regarding this I will ask a question later.
What I would like to know is whether infrastructure bonds would be a good choice, as compared to any of the above, considering my profile, as given below. If better, I may consider investing in them, instead of investing the complete Rs. 1 lac in the above.
I am not sure how much of the following info is relevant here, but still -
- I live in India. I am 24 and a Software Engineer, working since 3 years.
- I am unmarried and have no dependents on my salary as such... I am the only son. My father has his pension and that has been so far enough for their general expenses (including my mother - a housewife). Currently I am not sending them any monthly sum for their expenses.
- I don't have a habit of accounting my expenses, but over these last 3 years, since I got my first job, my annual salary has increased from around 1.2 lacs per annum to 7.5 lacs per annum (Cost to Company) and right now I have a balance of around Rs. 1 lac in my salary account. This is the same account I use to make investments (take money from). Hope that gives an idea about my expenses.
Over the last two years, I have invested on the following -
Last year -
- National Savings Certificates - Rs. 625000
- Life Insurance - yearly premium - Rs. 25000
Previous to last year -
- National Savings Certificates - Around Rs. 30000
I would like to make sure I make the most out of the opportunities available to me, to grow my money, without taking bad paths :) ...