Buying a term plan, selecting mutual funds and starting a PPF account – these are just some of the measures you can take to make the right investments in 2018.

As human beings, we constantly crave financial security and love from our dear ones. We are content with having regular meals, sufficient bank balance to pay for the household needs and a roof over our heads. But this financial security is never a matter of luck. You have to work towards creating a sound financial corpus for yourself and your loved ones. For this, you need to make good investments so that your current income can translate into future wealth.

However, there are many investment options in the market and many of them seem feasible to you. The rule of thumb when it comes to investments is to never put all your eggs in one basket. What this means is that you should never allocate all your resources to just one asset class – if it fails, then you end up losing all your money. For this reason, your investments portfolio must show diversification, so that risk is mitigated and your money gains in value over time.

We present the 5 best investment options for you to start with in the year 2018 –

• Term insurance. Buying a term plan is the simplest and most effective method of protecting your loved ones’ future goals in your absence. Term plans in India are amongst the fastest growing insurance segment, with buyers realising their value in helping to safeguard their families’ future needs in the absence of a regular income. Get your financial portfolio on the right track by buying a term plan in 2018, taking care to study all plan features properly before signing up for it online.

• Mutual funds. After buying a term plan online, it is now time to turn your attention to mutual funds. In recent months, the economy is showing signs of stability and even revival in some sectors. Accordingly, the market is responding cautiously but bullishly – thus making it the right time to invest in high grade companies in India. You should buy equity mutual funds over a 20-year period to gain sufficient capital appreciation and also mitigate risks. The best part about investing in mutual funds is that they can be as inexpensive as you wish, while also providing a variety of investment options and high flexibility as per your risk appetite.

• Real estate. Real estate is always a good investment option in India. It is considered an appreciating asset, with hardly an occasion for prices to crash unless there is a massive downturn in the economy. You can buy a house this year, or invest in commercial property. Whether you buy property or land to use for yourself or not, the value of the investment appreciates every year. Besides, real estate is quite liquid in India – you can monetise it by borrowing a loan against it, or renting it out or even selling it in times of financial need. Consider buying real estate in areas where public infrastructure (such as major highways, or tech cities, or even airports) is planned for high appreciation in the future.

• PPF. For years now, legions of Indians have reposed their faith in the PPF (Public Provident Fund) as a fail-safe investment option. If you don’t have a PPF account yet, this could be the year that you finally open one. The PPF invests your money similar to a RD (Recurring Deposit) for a period of 15 years. You can pay as little as Rs 500 per year in the PPF. Meanwhile, there is a partial withdrawal facility after 7 years, while the invested sum matures at 15 years and is returned to you with the interest payable on it. Just like a fixed or recurring deposit, the interest payable does not change on the PPF throughout the tenure of the account, despite rate changes in the market.

• Children’s education plan. Your children are precious to you, and their future scholastic ambitions can be realised with your financial help. At the same time, you cannot ignore the fact that higher education in India and abroad is prohibitively expensive. Your savings might not be enough to help you pay for your child’s higher education. It is advisable to invest in a suitable children’s education plan that pays for education or any other costs that you might incur in the upkeep of your children in the future.

There are myriad investment options you can explore in India, but starting off with the ones we’ve listed above can help you build a good financial portfolio for the year 2018.