I have just started my investment journey. What kind of schemes should I not miss in my portfolio?

Dear Sir, I have recently started my investment journey. Please let me know if there are any must-haves in the portfolio.

Swati

Reply by Rajiv Bajaj, Chairman & MD, BajajCapital

Five must-have schemes for every person who is planning to lead a disciplined and resilient life full of confidence are:

1. Mutual Fund SIPs (Systematic Investment Plans): Investing in Mutual Fund SIPs allows you to systematically invest a fixed amount at regular intervals into diversified funds. This strategy helps in wealth accumulation over time through the power of compounding.

2. Public Provident Fund (PPF): PPF is a long-term investment option with attractive tax benefits. It offers a fixed interest rate and is considered a safe avenue for building a retirement corpus or long-term savings.

3. National Pension System (NPS): NPS is a voluntary, defined contribution retirement savings scheme designed to provide regular income after retirement. It offers tax benefits and flexibility in choosing investment options based on risk appetite.

4. Health Insurance Policy: A comprehensive health insurance policy is crucial to safeguard against unforeseen medical expenses. It covers hospitalisation costs and provides financial security during health emergencies.

5. Term Plan (Life Insurance): A suitable term insurance plan provides financial protection to your family in case of your unfortunate demise. It ensures that your loved ones are financially secure and can maintain their lifestyle even in your absence.

By incorporating these financial instruments into your planning, you can establish a strong foundation for financial stability, long-term wealth creation, and peace of mind.

(Views expressed by the investment expert are his/her own. E-mail us your investment queries at askmoneytoday@intoday.com. We will get your queries answered by our panel of experts.)