"Don't put all your eggs in one baskest". This is the common piece of advice that I am sure you've all heard before. And it is best applicable on term "Investment". Always try to diversify your investments, for example
If you have Rs 10,000 spare every month, so dont invest the whole amount in one investment product. Diversified it.
40% - Equity Mutual funds
20% - PPF
20% - Gold
10% - Pure Term Insurance
10% - Health Insurance for family
( Note : Above example is best for the peoples of age between 20 to 35 years. For different age group the diversification of portfolio must be different )
The best investment combination in India is,
PPF + Equity mutual funds + Term Insurance
and I always recomend to everyone that they must add this three investment products in their portfolios weather you are salaried or self employed.
