The rules are simple:
- Keep 10-20% of your savings for short term emergency funds in fixed deposits that can earn you 7-8%
- Put about 30-40% in long term instruments like PPF which will give you tax free returns of 8%
- Invest the rest upto 50% in equity mutual funds
- Do NOT invest in insurance plans. Just buy a term plan and a health insurance to cover your risks.
This should allow you to have good savings plan for the next 10-15 years.