It's not often you come across a scenario where you can ignore the instruments of eight percent set as public pension funds and post office systems to run your average monthly income of the portfolio.

The risk of transfer of each investor to choose between these options, since the second round of investment will not return to these products. And most of the time, interest rates of deposits used lethargic, and so, even if they miss by investing in them, no matter.

In 12-15 months, was a completely different and the Reserve Bank of India (RBI) is in no mood to lower your debt performance.

In addition to fixed deposits in banks and companies have self-development financial institutions joined the car to deliver double-digit returns on their systems. Investors have certainly never been so good on the debt market for a long time.

Interestingly, the scene is unlikely to change significantly in the near future as there are signs of a reduced rate of RBI. While interest rates were to pause at the beginning of 2012, they will probably be in the range of interest of seven percent until the first half of 2012 if current trends are any indication.

While assistance to low interest rates have reached a new high, higher than the number comfortable inflation do not support the cause. In fact, companies are likely to seek healthier ways to finance their needs and the trend has already begun.

On this basis, investors can continue to maintain their bias in favor of fixed instruments for short-term portfolio, like other asset classes do not always signal comfort. The equity remains unstable and can not be looked through a phased approach.

Merce has never been more risky, and even gold to invest in the light of the festive season, the change in the share and currency markets makes it more volatile. In fact, both gold and silver is everywhere in recent weeks, and do not offer comfort than ever before.

Investment funds have been a reflection of the trend and have been actively involved launching fixed maturity plans (FMP) at a frenetic pace. While PGF long-term performance may not seem attractive at first glance, appear to be due to low taxation.

Of course, the indexation of benefits may not be applicable to all plans due to new tax code, but the long-term capital gains tax makes it attractive compared to fixed deposits.

Even in the short term, the most important deposits of PAF are still many funds have been launched three months, work to capture the trend of short-term interest. Banks have always been less aggressive prices of short-term deposits, and therefore have not proved attractive to depositors in bulk.

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In addition to cash, investors can see the PAF short term, although they do not provide any comfort taxation. These products are ideal for those who are sitting on big gains from other investments such as property which is in itself a percentage difference in returns can operate in a few lakh rupees.

Source: [ET]