May 29, 2023

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Top Investment Options for Everyone in Their 20s

Top Investment Options for Everyone in Their 20s

You just finished college and started your first job. 20s is an interesting decade and with the newly found financial independence, investing may seem a long time away. However, investing from an early age ultimately proves very beneficial with the power of compounding. This allows you to accumulate additional returns on your income earned from your original investment, which can help build a sizeable corpus in the long term. 

Here are five investment options if you are in your 20s:

  1. Equities 

Investing in listed company stocks can allow you to earn higher returns. However, stock markets are volatile and have higher risks when compared to other options like fixed deposit (FD), mutual funds, and others. Nonetheless, it is a good investment option when you are younger and do not have too many responsibilities that allow you to take higher risks.

  1. Mutual funds (MFs)

MFs raise capital from multiple investors and the same is invested in various types of products, which includes fixed-income securities, stocks, and others. You can invest either a lump sum amount or opt for a systematic investment plan (SIP), which allows you to invest a smaller sum at regular intervals.

  1. Gold 

Traditionally, gold has been a popular investment option amongst Indians due to its increasing value. Today, you do not have to invest in physical gold as other options like gold mutual funds, deposit schemes, Sovereign Gold Bonds (SGB) and Exchange-Traded Funds (ETFs) are available.

  1. Fixed deposits

Historically only banks issued time deposits; however, today several non-banking finance companies (NBFCs) offer such deposits. Compared to bank deposits, company deposits offer higher fixed deposit interest rates, which help you to maximize the returns on investments. Although the risk may be a little more when you invest in company deposits, you can mitigate the same by investing in deposits that have a higher credit rating. You can apply for a fixed deposit online, which makes it quick, simple, and easy.

Mahindra Finance offers attractive interest rates on its deposit schemes. You can also choose different tenures based on your personal needs. You can visit the official website to check the FD eligibility norms and other terms and conditions.

  1. Insurance plans

Life is uncertain and having insurance coverage is important. You can choose from different types of insurance, which includes unit-linked insurance plans (ULIPs), endowment policies, term plans, and many more. Term plans allow you to procure higher coverage at an affordable premium while traditional policies can help you to achieve your financial goals at different stages in your life.

You can achieve financial stability by investing and starting early which has many benefits. Start your financial  planning and investment journey today.