Two schemes are good options for you. PPF and mutual funds fit into two classes of investments – fixed income and equity respectively. Besides these you can consider:
- Sovereign Gold Bonds to make up 5% to 10% of your portfolio. I invest in these myself as a hedge against inflation and any volatility in global markets. They provide some interest income, as well as liquidity and low investment costs.
- In fixed income, Sukanya Samriddhi Yojana is good, offering the highest return (higher than PPF) and tax exemption at redemption.
