Rs.1Lakh Tax Investment options???

Hi,
I want to know the best investment option for 1L tax amount. If anybody can suggest the various channels/options for max returns it would be best.

I'm ready for a 3yrs lockin time but just in case i might want to pull out in an emergency.

Please advice.

Thanks,
Amrith

Welcome to Yahoo Answers. I believe, you are from India. You can invest a maximum of Rs.70,000 in PPF each year (lock in period 15 years, though you can withdraw some percentage after a couple of years). You can even invest some amount in Mutual Funds (some Mutual Funds investments are tax free - NOT ALL). It is better if you take a hint or two from investment consultant or a Chartered Accountant who would be able to guide to professionally and accurately.

The best optiopn is going for 3 top ranked tax saving mutual funds, if you are ready to take some risk. All other intruments are having more than 3 years lock in period. ULIPS are expensive dont prey to agents sweet words....

I feel you should invest in these :
1)Insurance-Pure Life Term is the best although Insurance Agents won't be too happy to sell those to u .
2)Shares of Good Companies
3)Mutual Funds
4)PPF .
Of course there are other options like NSC, Mediclaim ,Charity Donations etc .

You may divide 1 Lakhs into amounts of say 50% , 30% , 20 % into different categories so that you have both Money Growth as well as Safety + Liquidity options .

As Jaimon said, I also believe tax saving mutual funds are the best option(only 3 year lock in) .
Another one is traditional insurance policies (not Market linked) with good guaranteed bonus.
Then post office schemes but term(period of investment) is more (6 years).
Tax saving FDs with Bank (Before that check various FD rates of all the banks thro' net and select best one) (Term: 5 years)

Hi Amrith,
You may split 1 lakhs into 4 parts and invest in 4 top Tax Saving Mutual Funds. (for e.g., SBI Tax Gain, HDFC Tax Saver, etc.,). These tax saving funds would have a 3 years lock-in period and you may have to pay some amount of penalty for withdrawing funds within 3 years.

You may also invest in PPF or NSC. There again, you have a lock-in period > 3 years.