1. Perceive Your Threat Urge for food
Low Threat: In the event you want security, go for PPF, EPF, NSC, Tax-Saving Mounted Deposits, or Sukanya Samriddhi Yojana.
Average Threat: Think about ELSS (Fairness-Linked Financial savings Scheme) mutual funds, ULIPs, or NPS (Nationwide Pension System).
Excessive Threat: In the event you can deal with volatility, ELSS funds or market-linked insurance coverage provide development potential.
2. Think about Present Belongings
If you have already got debt-heavy investments (PPF, EPF, NSC), including ELSS can steadiness your portfolio with fairness publicity.
In the event you maintain substantial actual property or bodily belongings, investing in liquid, market-linked tax-saving choices is likely to be higher.
3. Align with Monetary Objectives
Quick-Time period (3-5 years): Keep away from lock-in heavy devices like PPF (15 years) and go for ELSS (3 years lock-in) or tax-saving FDs (5 years).
Medium-Time period (5-10 years): NPS, ULIPs, and NSC work nicely for medium-term wealth creation.
Lengthy-Time period (10+ years): PPF, EPF, NPS, and Sukanya Samriddhi Yojana go well with long-term wealth accumulation.
4. Consider Tax Advantages
Part 80C: ELSS, PPF, EPF, Life Insurance coverage, NSC, and so on. (Max ₹1.5 lakh deduction).
Part 80D: Medical insurance for self and household.
Part 80CCD(1B): Extra ₹50,000 deduction beneath NPS.
