This is V Sridhar here a Specialist in Financial Planning. There is something called as FMPs from mutual funds where u can invest. FMPs r similar to Fixed Deposits. The current yield in this invstment is 9.25%. If the tenure is more than 1 yr then u pay tax on long term capital gains @ 20% post indexation. If we assume inflation of 5%, we pay ,0.85% as tax and hence our post tax return is 8.4%. Another advantage is that the tenure for FMP is short like just more than 1 yr to 3 yrs. Whereas in PPF there is a huge lock in
