1) Emergency Fund

This is a fund which you set aside in bank fixed deposits or liquid funds for any emergency purpose. This fund will help you to manage finances without breaking your long-term investments.

2) Health Cover

Check with the employer about your health cover, whether the amount is sufficient, whether it covers your family members etc. Otherwise go ahead and take a health policy.

3) Equity Mutual funds

Most of the investment in this mutual funds will be towards equities. These funds should be considered for medium to long term investments to fetch better returns. They generally tend to beat returns from bank fixed deposits in the long term.

4) Stocks

This is the best time to start investing in equities and understand how it works. One can start making investments in small amounts and increase the same. Equities are known to give better returns in long term when compared to other risky instruments.

5) Tax Saving Instruments

Tax saving instruments help you save tax and earn returns on the investments. One can consider investments in PPF, ELSS, tax saving fixed deposit depending on the return.

6) SIPs

Systematic investment plans(SIP) are an excellent means by which you can start investing small, fixed sums of money at regular intervals. SIP uses the concept of rupee cost averaging.

You can invest systematically every month, and it works like a recurring fixed deposit. The onyl difference is that in an SIP you put money through mutual funds in equities or debt.