What investment advice would you give to a newly recruited bank clerk? In what proportions should I divide my total investment among FD, RD, insurance, PPF, SIP or any other options? From what amount should I start and how to increase?

Broadly speaking, investment assets are of two types:

1. Equity related: This has direct equity, equity mutual funds and SIP in such funds
2. Debt related (or Fixed Income): This covers FD, RD, PPF. Some insurance linked investment plans may also be considered here.

You must plan to invest as per your appetite for risk, investment horizon and arrive at an asset allocation. You can do a free risk profile here.

You must start investing as much as you can save. For a new recruit, it could be anywhere between 20% to even 50%. Increase this by atleast 10% every year OR shift 50% of your annual incremental into the investment.

The more you invest, the earlier you can meet your goals and achieve financial freedom!