But interest rates appear to be topping out, so here's a chance to lock into long-term (three year) money at 10.5-11
per cent, which will fetch you about 7 per cent, post tax.
If you think you can do without the money for a longer time, say four years, you could opt for longer term deposits.
FMP today is a four letter word but fixed maturity plans have given good returns in the past. I would like to think there are responsible fund managers who would not invest the money in sub-standard paper or in paper issued by real estate firms.
Perhaps one could wait a while for the liquidity situation to improve and then buy into an FMP.
The returns are better than those on fixed deposits, especially if the paper has a maturity of more than a year because there are
tax benefits to be had.
Again, stay with reputed fund houses.
Finally, since Diwali is here, do buy some gold. It's always a good investment. And if you still have money left over, go party!
Image: A file photo of 2005 shows workers putting up an outdoor advertisement for a finance company in Mumbai. | Photograph: Indranil Mukherjee/AFP/Getty Images
Also read: These Wall St bosses took home over $1 bn!
Powered by 
| Live updates on money.rediff.com |
|
Advertisement
