According to some of the best financial experts in the country, it is important to diversify your investment portfolio and to invest in multiple schemes to reduce risks. By doing so, you can secure higher returns in the long run.

Fixed Deposits

When you invest in fixed deposits offered by non-banking financial institutions like Bajaj Finance, you get a higher rate of interest as compared to regular savings accounts. The interest varies anywhere between 4% and 7.25%. One of the major advantages of having fixed deposits is that they offer assured returns on the invested amount. Also, they provide flexibility in terms of tenure – they come with various tenure options ranging between 7 days to 10 years. You can thus choose to park your money in fixed deposits as per your requirement.

Public Provident Fund

If you are looking for a long-term investment scheme with higher returns, investing in public provident fund is a good option. It is backed by the Government of India, which offers safety with attractive interest rate and returns. Investors can invest any amount between Rs. 500 to 1,50,000 in a financial year. Investments in PPF are exempted from tax, making it one of the most popular tax saving plans for investors.

Employee Provident Fund

If you are an employee of a company, a substantial part of your monthly salary is contributed towards EPF i.e. Employee Provident Fund. It is mandatory for companies having more than 20 employees to deduct EPF from employee salaries. The Employees’ Provident Fund Organization, which falls under the Ministry of Labour and Employment regulates this fund. Both employer and employees contribute equally towards the employee’s EPF.  In the long term, this can turn out to be a good investment in terms of retirement planning.

National Pension Scheme

You can start investing in National Pension Scheme early in your life and receive the entire amount during your retirement to lead a comfortable life. In short, it is a voluntary, defined contribution retirement savings scheme. It inculcates the habit of saving for retirement amongst people, according to the Pension Fund Regulatory & Development Authority, the authority managing NPS operations. Individual savings, as per the approved investment guidelines, are diversified portfolios comprising government bonds, bills, corporate debentures and shares. These contributions grow and accumulate over years depending on the returns that you receive on your investments.

National Savings Certificates

National Savings Certificates are government-regulated certificates, that can be purchased from post-offices. NSCs offer attractive rate of interest of up to 8.8%. It can be initiated by investing a minimum amount of Rs.100, and there is no upper limit for the investment amount. NSCs have five-year maturity periods and are fixed income savings bond investment schemes. Most importantly, they can be pledged to banks for availing loans against securities. The NSC can be transferred from one individual to another, if the holder wants to.

Also Read :- Complete Guide to Investing