Remember those good old days when you could comfortably rake in double-digit returns by parking your hard-earned surplus in all those predictable avenues-PPF, NSC, postal savings schemes, and bank deposits? If you do recall those times, perhaps it's now time to reminisce about them with dollops of nostalgia. For, those years are pretty much history. It isn't as if all those options have flown out of the window. They're very much around. The difference is that the returns from them are no more assured and predictable. What's more, the tax breaks, which earlier were one of the major drivers for your investment decisions, have reduced, if not disappeared altogether.

The various stories in this personal investing package will, besides opening your eyes to attractive opportunities, emphasise a new reality: that no longer can you afford to sit tight on your portfolio for four-to-five years, and take the returns for granted. That's because those returns are now linked to the market. So if interest rates climb, you should be in a position to reallocate your portfolio. You may argue that the chances of rates moving appear remote, given the mindset of the policy makers-which resulted in interest rates dropping 3 per cent last year itself. But what if inflation climbs tomorrow? What if oil prices continue to rise (they've already gone up $4 in the past six months)? What if the economy turns around? ''Investors don't seem to understand this, but a floating rate regime could also result in an increase. That's why I'd advise you to retain the option of churning your portfolio at regular intervals-you should have the flexibility to reallocate 50 per cent annually,'' explains Milind Barve, Managing Director, HDFC Mutual Fund.

So, with tax breaks disappearing and the interest on your small savings sinking-the latest 0.5 per cent cut is being viewed by the working class as yet another rusty nail in their frugal coffin-the message from the Finance Minister's pulpit is loud and clear: a little risk won't hurt you; venture out on Dalal Street.

Now if you feel that you've played enough with the fire of the equity markets, and refuse to get burned once again, we can empathise. Numerous scams over the years have ground investor confidence into the dust, and making money from stocks is justifiably perceived to be the purview of cosy coteries. Yet, small investors too should take a share of the blame, as many put their hard-earned money where somebody else's mouth was. Tips culled via Chinese Whispers are hardly the way to go about playing the stockmarket. Even if the tip holds some water, do you have the financial backbone to ride the possible volatility over the longer term? A.K. Sridhar, General Manager, Department of Funds Management, Unit Trust of India, says that the ''sudden'' risks associated with the markets have reduced. ''But the small investor shouldn't be in the markets if he doesn't have the wherewithal-at least a Rs 10 lakh surplus, a house and the knowledge.'' Barve adds that ''financial literacy'' in the country is low. ''Investors don't understand the risks that come with equity.''

If, however, you are mindful of the risks, there is money to made in equity, as our features on mutual funds (See Page 42) and stock picks (See Page 36) will tell you. If you feel you have the stomach for equity but not the head for research and the time for monitoring, head straight for a mutual fund, and let its managers do the hard work for you.

Equities may appear attractive today, but that doesn't mean you park your entire surplus in these high-risk instruments, even if you take the mutual fund route. So buy stock in accordance with your age, quantum of funds at hand, and requirements. If your investible put-away is under Rs 5 lakh, well that's hardly a stash and our advice would be to maintain a safe distance from equity. If you do have the money, but little expertise, a vanilla diversified fund would be your best bet. Sectoral funds may promise higher returns but remember that by selecting an industry, you are absorbing some of the risk which would be on the fund manager's shoulders.

Your traditional savings instruments may appear less attractive today, but as our story on fixed income instruments (See Page 54) will tell you, by building a balanced portfolio of PPF, postal savings, bank deposits, along with a mutual fund, you could still take home returns that your spouse won't sneeze at. And earmark a part of your surplus for an old-time darling that fell out of favour in the mid-nineties, real estate. As our story points out, prices are close to bottoming out, and the soft-interest regime will come to your rescue when borrowing to buy a house.

Ranting about Yashwant Sinha's anti-savings budgetary proposals won't go a long way in growing your surplus. Returns may not be guaranteed any more, but they're still there for the taking. Think about it-not about this story but your investment strategy.