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Exit Guide

Choosing the right investment product

You can choose an investment product based on your risk profile and the time it can take to reach your goals.

 

For example, when it comes to tax-saving, there are four options.

  • Public Provident Fund (PPF),
  • Five Year Fixed Deposits,
  • Equity Linked Savings Scheme (ELSS),
  • National Savings Certificate (NSC)

However, the one that might be suitable for your goal depends on your risk-taking capacity. In the early years of investing, you have more years to retire. Therefore your risk-taking capacity is also higher.

Pro Tip

As you grow older, your capacity to take risks decreases.

In these years, you can choose investments like ELSS for tax savings.

Therefore, you can invest in less risky investments like PPF, FD or NSC during this life stage.

You can also combine your tax-saving goal with your retirement planning goal and stay invested for a longer-term. You can change your asset allocation at every life stage.

But what is asset allocation? 

Scroll to the next chapter to know.

Let us know what asset allocation is!

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