PPFMutule fundInvestment in InsuranceNSC

Currently Mutual Funds are the best investment, considering the highest returns given by them, but it involves the highest risk also.Hence, its always beneficial, if you can devide your money into equity & debt funds, equally. Where equity will give you the high returns, if it works well, the debt funds will give you safe low returns.

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It depends what is your risk taking capacity?You should divide your investment into parts. One part to go for mutual fund for better returns, one part for investment in insurance for your safety and returns and one part in PPF .This may balance your fund.

1) PPF is good but you have to lock your funds for 15 years.2) Mutual funds are looking good since 2004 (BSE index was 3000 in 2004 and now it is 20,000.). But how long they will keep up in the risky market is doubtful. 3) Life insurance is good to some extant to keep the family in some what safe position. But the returns will be very very less. One practical example: After paying Rs.5,300 per year for 20 years, the final maturity was only Rs.2,30,000/-. Again in this you have unit linked insurance called ULIP. It is again a mutual fund like I said in S.No.24) NSC good with 6 years period. But for the same one, you can still go for a bank deposit which gives equal tax benefits with 5 years lock in period and slightly better interest.So you decide which one suits you.