Every working person wonders where and how to invest their money. If someone has suggested SIP, EPF, or NPS, the biggest confusion is how much money should be deposited in these three schemes based on age to achieve their financial goals. Let's first learn about these three schemes and then understand the distribution of investments.

Systematic Investment Plan (SIP)
SIP is the easiest and most flexible way to invest. In this, you invest a small amount every month, which accumulates over time. Equity SIPs, in particular, can provide returns that exceed inflation, making them the most prudent option for young people with a long-term horizon and risk tolerance.

Employee Provident Fund (EPF)
EPF is a safe and reliable investment that offers guaranteed returns. It is mandatory for every employed person. You can also add additional funds if you wish. This is a particularly good option for those who prioritize the safety of their money and stable returns.

National Pension System (NPS)
NPS is an investment specifically designed for retirement. Your money is invested in both equity and debt, providing a perfect balance of risk and stability. It also offers significant tax-saving benefits. For middle-aged individuals, making a larger contribution to NPS is beneficial as it gradually builds a strong retirement fund.

Distribute your investment this way
While you are free to invest in any scheme, if you are currently between 20 and 30 years of age, you can invest 60-70% of your total investment in SIPs. Additionally, you will need to contribute some funds to EPF, and you can invest less in NPS if you wish. Investors between the ages of 30 and 40 can benefit from tax benefits by balancing SIPs and EPF, as well as increasing their NPS contributions. Additionally, if you're nearing retirement, meaning you're over 50, you can invest 60% each in EPF and NPS, while reducing your SIP portion to focus on stability. Investing in all three will help balance your portfolio, as SIP provides growth, EPF provides security, and NPS provides tax benefits.

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