Most of us want to keep our money safe while choosing to invest in our long-term goals like child education and our own retirement. This is done primarily because everyone has told us that investments in equity markets are risky, and we really don’t want to take the risk with our important goals like education and retirement. While it looks like a prudent choice, but unknowingly we are making the wrong choice of investment products, like FDs, NSCs, PPF etc. Let us see three main reasons why in long-term goals, it makes perfect sense to take the risk. 

While we save throughout our life for our peaceful retirement, but when it comes to investing our retirement corpus, we choose many tax-inefficient products. This is mainly, due to lack of awareness about products to invest in, during our retired life. In this article we have proposed a mix of three type of investment products which will result in tax-efficient returns and will provide you better risk-adjusted returns in the long term. You may find it useful either for your own retirement corpus or for the investments of your retired parents.

Something as basic as lack of time can prevent a person from achieving his financial goals. We all have lot of commitments and the meager time left is for our loved ones.  Provident funds will only help you achieve half of your retirement goals. The return on FD bearing 7% interest provides 4.9% of returns after taxation, which when compared to rate of inflation of 5.7% is actually a negative return. We are not aware of the amount which we require to meet our financial goal. A personal financial advisor is what you need.