Financial instruments such as mutual funds, stocks, fixed deposit, real estate, along with national pension scheme (NPS) and employees’ provident fund (EPF), are some of the most common avenues looked at by investors to have a smooth and financially safe retirement. EPF The employee has to make a minimum contribution of 12 per cent of his/her salary per month, which is matched by the employer towards EPS. However, the employee can voluntarily increase their share of the EPF contribution. These contributions are made towards the retirement fund of the employee. NPF NPS is not a mandatory contribution scheme, unlike EPF. An investor has to open an NPS account on their own, wherein the minimum contribution is set at Rs 500 in Tier I and Rs 1000 in Tier-II accounts. There is no investment limit set for NPS accounts. Experts say not investing in the right instrument could mean losing out on the potential returns of investment. Also, choosing one investment tool for such an important part of life can be confusing, hence, it’s better to understand these investment instruments properly before taking a decision.