Saving and investment is a long term goal
It is basically a life-time exercise to devise an effective savings plan through proper investment. A tax-saving investment strategy can aid you in building a lump sum provident fund account. Saving in a provident fund has enormous advantages. It is backed by the state and offers considerably high return. There are tax-exemptions on the interest earned and above all, its effective post-tax return is pretty handsome.
An individual who has just begun to build his career, this is an important prospective to start off with. A regular contribution can offer long-term dividends. During this time, person is likely to be burdened with lesser responsibilities. As such, he can indulge in a bit investment risk like the equity mutual fund. A lot of financial experts are also of the opinion that it works better if calculated investment is targeted at these equity linked savings schemes of the mutual funds.
A basic term-insurance life policy is perhaps the cheapest mechanism to earn the maximum profit from an insurance investment. Then, there are the Fixed Income Instruments. Although they are incomparable to the equity investment, they offer assured and safe returns for investments. As they are free from any market risks, the investor stands to receive a specified amount at a stipulated period. He gets to build a stable portfolio. These are particularly appropriate for investors who are who are nearing retirement.