Investment: SIP alone won't create a perfect portfolio. If you want to secure your future, consider these 6 investments..

Top Investment List: Often, people start investing with SIPs, thinking that this will secure their lives. However, if you truly want to secure your financial future, relying solely on SIPs can be a mistake. SIPs are certainly a good option, but they are not the only option.

Smart investors always diversify their portfolios, i.e., they invest in different investment options to minimize risk and provide balanced returns. If you want to truly strengthen and secure your portfolio, you should invest in SIPs along with other options to build a strong financial foundation in the long run, with tax benefits and stable returns.

1. Public Provident Fund (PPF) – Safe and tax-free option

If you want guaranteed returns and good profits, you can invest in PPF. This scheme matures in 15 years. Currently, it offers 7.1% interest, along with the benefit of compounding. You can invest a minimum of ₹500 to a maximum of ₹1.5 lakh annually in this scheme. Investing in PPF also provides tax benefits under Section 80C of the Income Tax Act. This scheme can provide you with better returns in the long term.

Tips
The earlier you start investing, the better.

The lock-in period is typically 15 years.

This is a risk-resistant option if your profile is secure.

2. Voluntary Provident Fund (VPF) – Expanding Employee Savings

If you are employed, VPF is a very good option and should definitely be included in your portfolio. It is an extension of the Employee Provident Fund (EPF), where employees can make additional contributions from their salary. There is no limit on salary deductions in VPF. If an employee wishes, they can contribute up to 100% of their basic salary. The interest rate on this scheme is better than that of many other schemes. Currently, it is offering 8.25% interest.

Benefits
Tax savings (under 80C) + high interest rate.
No risk like equity
Better returns in the long term

3. National Pension System (NPS) – Market-Linked Pension Alternative

The National Pension System is a contributory pension scheme run by the government. Under this scheme, you are required to invest for a long period during your working life. At the age of 60, you can take a portion of your corpus as a lump sum retirement fund, while investing the remaining portion in an annuity to secure a pension. Under NPS, your funds are invested in equity, debt, and government securities, which are expected to yield returns of 9-12%.

Why is this important?

Tax benefits: Up to ₹1.5 lakh under Section 80C and additional deductions under Section 80CCD.

A source of monthly income after retirement.

Investment in the market has the potential to generate good returns over the long term.

4. Gold – Inflation-Hard Hedge and Diversifier

Gold has been a preferred investment option for years, not just recently. It serves as a great companion in times of emergency. Gold has generated significant long-term returns in India. Nowadays, it can be purchased both physically and digitally.

Why invest?
Acts as a hedge against inflation and market volatility.
A preferred investment for both traditional and modern investors.
A good balancer for equity and debt portfolios.
A companion in emergencies.

5. Fixed Deposit (FD) – A Safe and Simple Option

Apart from all these options, an FD is a must-have in your portfolio. It offers guaranteed returns and keeps your money safe. If you suddenly need money, you don't need to touch any other investment; you can simply break the FD and meet your financial needs.

Why Choose It?
Secure Investment
Liquidity
Short-Term Goals

6. Insurance: Not Just Life Cover, An Essential Financial Tool

Many people consider insurance an expense, but in reality, it is the most important part of your family's financial security. Term insurance provides financial security for your family, while health insurance protects your savings and safeguards your family in case of a health emergency. ULIPs and endowment plans offer both investment and security. By choosing the right insurance plan, you can reap all three benefits: tax benefits, coverage, and long-term growth.

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