If you are looking to invest in India, do you sometimes wonder where to start?

Do you think India with its mature capital market, relatively control free economy and backed by professional banking services offers diversified investment options?

The first step is to assess your personal need for liquidity, capacity to take risks and the returns you are looking for.

As a safe long term option you can look at investing in PPF (Public Provident Fund) or picking one of many insurance policies on offer. The minimum amount that you can invest in a PPF account is Rs. 500 and you can invest up to Rs. 70,000 in one financial year. All banks provide this facility and PPF is a safe and painless way to save long term. It comes in handy as a tax saving tool too.

Both Mutual Funds and Equity investments are attractive as they offer good return potential. Though one can do this online, it is recommended that you go with a broker to help you decide. It will save you the time and get you better returns. See if you can spot someone your family knows back home and use their services.

While on Mutual Funds – remember that here too we can have both short term and medium term possibilities. The debt and equity funds will fit the medium term needs.

As an NRI, you can subscribe to new issues of shares and convertible/nonconvertible debentures by Indian companies. However, to buy in the secondary market you need to go through the Portfolio Investment scheme offered by Banks.

If you are looking to making a bigger investment, remember that NRIs are permitted to invest in partnerships or proprietary concerns in India. You can also invest in Indian schools and colleges. Investments in real estate would also be a smart choice, as property rates in India are on the rise.

If you are risk averse, then another option will be Fixed Deposits in Banks, which are very safe and yield up to 7% interest annually.

The options are many but please ensure compliance with related regulations while making investments and do monitor your portfolio regularly.