Last time a good friend of mine called up asking where to invest as she is getting some amount in December and haven't invested to save tax so far. The first thing that came to my mind was PPF account , keeping in mind the long term return she was looking for. I was excited to pitter patter out plans after plans, unable to hold my excitement and test my knowledge.
Some of them which i suggested in a quick haste are
This is perhaps the only investment where tax is not attracted even on the interest amount and hence totally Tax free. While one can have different views like short term investments, PPF is considered as a long term investment, particularly after your retirement
2) Life Insurance
One must is a Life insurance,be it at LIC or some other agencies. Whereas others are treated as investments, Life insurance is an Insurance and not an investment. One has to understand the difference between INSURANCE and INVESTMENT.
3) ULIP Linked Mutual funds
Currently market is down and if someone is looking for a long term investment, then ULIP linked Mutual funds are good investments. You will probably end up with more then 34% interest after 10-15 years time. But one should make sure to invest only the excess amount he has and not the earnings.
Rest are small investment plans that might come to mind...
Well i hope i was right in my decsions that was made in a matter of 5 minutes of trunk call.