You have been given a sum of 10 lakhs. Explain at least 3 ways in which you will profitably invest the said amount.

A sum of money of the order of Rs. 10 lakhs (i.e. 1
million Indian rupees) can be invested a combination of one or more of the dozens of
available investment avenues. Some of the main of such avenues of investment
include:

• Fixed Deposits in bank. This can be for
  different maturity periods and with options to receive interest periodically or at
  maturity.


• Investment in government saving schemes such as
  National Saving Certificates.


• Fixed deposits in joint
  stock companies. These deposit generally give higher interest rates as compared to bank
  fixed deposits, but also carry a high risk of default in
  repayment.


• Buying debentures in joint stock companies.
  These carry lower interest rates as compared to company fixed deposits, but can be
  traded easily on the stock market. This also means that there can be gains or losses due
  to price fluctuations in the stock market.


• Buying shares
  in joint stock companies. The return on these depends very much on the correct choice of
  stocks and the timing of their sale and purchase. On average, a careful investor can
  expect to make higher profit than fixed deposits in joint stock
  companies.


• Buying shares of mutual funds. This is similar
  to buying shares. In his case with both returns as well as risks are lower as compared
  to shares.


• Investment in public provident fund (PPF).
  This requires opening of a PPF account in a bank. Maximum amount that can be deposited
  in the account is limited to rs 60,000 per
  year.


• Investment is special government scheme schemes
  open for senior citizens. These schemes generally offer higher returns as compared to
  fixed deposits in banks or other government bonds. The maximum amount that can be
  invested is limited to Rs. 10 lakhs.


• Investment in fixed
  assets like a house or land. Like share, this requires correct choice of the property
  purchased and the time of purchase.


• Investment in gold or
  some other precious commodity like silver or diamond. Among these gold and silver rank
  as investment with fairly good appreciation and easy to sell off as and when
  required.