Divide investments like this
Every working person definitely has this thought in his mind that where and how to invest his money and if he has chosen SIP, EPF or NPS for investment on someone’s advice, then the biggest confusion is that how much fund to deposit in these three schemes according to age, so that his financial goal can be achieved. Let us first know about these three schemes and then understand the distribution of investment.
Systematic Investment Plan (SIP)
SIP is the easiest and flexible way to invest. In this you invest a little money every month, which becomes a big fund in the long run. Especially equity SIPs can give higher returns than inflation, hence it is the wisest option for the youth as they have long time horizon and ability to handle risk.
Employees Provident Fund (EPF)
EPF is a safe and reliable investment, which gives guaranteed returns. This is mandatory for every employed person. If you want, you can also add extra money to it. This is especially a good option for those who give more importance to the security of their money and stable returns.
National Pension System (NPS)
NPS is an investment specifically designed for retirement. In this, your money is invested in both equity and debt, which provides the right balance of risk and stability. Apart from this, there are good benefits of tax saving also. Making a large contribution to NPS is beneficial for middle-aged people as it gradually builds a strong retirement fund.
Divide your investments like this
However, you are free to invest in any scheme. Still, if your age is still between 20 to 30 years, then you can invest 6070% of your total investment in SIP. Apart from this, it will be necessary to contribute some funds in EPF and if you want, you can invest less in NPS. Apart from this, investors whose age is between 30-40 years. He can avail tax benefits by increasing the balance in SIP and EPF, as well as by increasing the contribution in NPS. Also, if you are near your retirement i.e. your age is more than 50 years, then you can invest 6070% in EPF and NPS and also focus on stability by reducing the SIP portion. By investing in these three, your portfolio will remain balanced. Because there will be growth from SIP, security from EPF and tax benefits from NPS.
(Disclaimer- TV9 Hindi does not advise investing in any fund or scheme. This news has been written for general information. Before investing, definitely take expert opinion.)