Best Investment Options For Young Adults In India
10
Many young people think that the '20s is for fun but the reality is that this time period is the best to learn & grow in your life.
Young people should understand the power of investing as early as their 20s.
20's, 30's Etc are very important to shape someone's life so here we will focus on different types of aggressive investing.
Being very young you can bear all types of risks like low, medium, and high.
I am assuming that you earn around ₹20,000 per month by taking this into consideration we will proceed with our article.
This age is the first step in your financial journey. In this article, we will tell you about the best stocks to invest in in your 20s and many more.
To exemplify this, let’s look at how much a minimal monthly investment of 5000 INR growing at 10% per annum becomes in different time spans.
As can be seen from the above table, the longer the time frame the higher the returns. Does this ring a bell yet on why you must start investing early in your 20s? Hope it does.
Now that you have understood why starting your investment journey early in your 20s helps, let’s look at the different possible investment options that one can consider investing in:
| S.N | How To Invest Money In Your 20s In India |
| 1. | Health |
| 2. | Personality |
| 3. | Education |
| 4. | Make Best Use Of Your Resources |
| 5. | Debt Free Life |
| 6. | Mutual Funds |
| 7. | Cryptocurrency |
| 8. | Fixed Deposit |
| 9. | Gold |
| 10. | Stocks |
1. Health
Sleep at least for 6 hours and talk to your loved ones to remain mentally fit. Also, take Health insurance if you feel the need.
Watch this video to know the best health insurance for your age.
2. Personality
Personality includes your mental, physical, intellectual, and spiritual appearance.
Have good health & take care of your skin, clothing style, and shoes.
Watch this video to entirely change your personality.
3. Education
Education includes your academics, general knowledge, current affairs, finance knowledge, your carrier knowledge.
You should study for at least 5 hours on these topics to become a knowledgeable person. You can take the help of books, YouTube, and Newspapers to full fill the need for this.
Watch this video if you feel that you need a little more clarity.
4. Make Best Use Of Your Resources
Whatever resources you have you should try to make maximum benefit out of it.
For example, if you have a Credit card then you should know how to use it to generate money.
If you have a room or anything which you don't require then you can give it for rent.
5. Debt-Free Life
Never & ever take a loan even if you have a bad time. But if you are taking a loan then make sure to pay it back as fast as possible.
You can take a loan with the lowest interest only in those situations where you think that you can get some benefit from this.
Watch this video to know more about it.
6. Mutual Funds
Mutual Fund is essentially money pooled in by a large number of investors and managed by a professional fund manager. It is a trust that collects money from a number of investors sharing a common investment objective.
The money is invested in equities, bonds, and other financial instruments. Every investor holds a portion of the total holdings of the fund.
Mutual funds are a great option for investors in their early 20s as they are easy to research and buy. While most mutual funds demand a minimum lump sum investment of Rs. 1000 to Rs. 10,000, investors can invest as low as Rs.
100 per month by starting a SIP in these funds. High-risk Mutual funds have the potential of giving annualized returns as high as 30-35%. Mutual funds also qualify for tax deductions under section 80C.
Here are some of the best Mutual Funds which one can invest in:
ICICI Prudential Focused Bluechip Equity Fund
Aditya Birla Sun Life Small & Midcap Fund
Tata Equity PE Fund
HDFC Monthly Income Plan – MTP
L&T Tax Advantage Fund
7. Cryptocurrency
One of the most popular but fairly parlous investment options gaining instigation is investing in cryptocurrencies. Cryptocurrencies have the eventuality of furnishing advanced returns in a fairly shorter time period. BITCOIN is the buzzword these days and further and further investors are taking a dive into investing in it.
Cryptocurrencies simply put are digital currencies that use cryptography for security and sequestration. The security is grounded around the Blockchain technology which is nothing but participated digital checks arranged in blocks linked with each other in the form of a chain and made available in the participated network.
Given the fact that encyclopedically interbank deals are fairly clumsy where exchange rates need to be taken into account hence leading to advanced sale costs. Cryptocurrencies break this problem since they have the same rate accepted encyclopedically and make deals important faster than the current process. Hence, cryptocurrencies surely find operation in making deals briskly and lightly in the future both for bigger businesses and people who have the need to travel to other countries on a regular base.
Before you invest in cryptocurrencies it's important to understand the significance of the same and read about the different systems. Bitcoin is presently the most popular and the largest in terms of request capitalization followed by Ethereum and Binance Coin.
Investing in cryptocurrencies in the 20s is substantial for the high threat takers who have some quantum of plutocrats left after making other investments. It needs to be kept in mind that cryptocurrency prices are largely unpredictable and hence one should only invest that redundant plutocrat which they're willing to lose in case effects don't go as planned.
8. Fixed Deposit
Fixed Deposits are a good venue to grow savings with utmost safety. One can deposit a lump sum quantum with their bank/ financier and choose a term as per convenience. On completion of the term, the deposit starts earning interest throughout the chosen duration as per the interest rate at which you locked in your deposit.
It's always good to have a short-term saving scheme as an exigency fund. For case, keeping an RD of 6 months to 1 time can insure that you always have disposable cash within reach. utmost banks offer 6- 7 interest rates.
FDs and RDs are safe investment options and one can start to invest in these instruments in their early 20s if they're looking for no-threat investment options, also furnishing an occasion to withdraw their plutocrat in times of need.
9. Gold
People in India absolutely love investing in precious essence like Gold and tableware as they've been an important asked commodity for periods. Gold is a unique asset largely liquid yet scarce. It's frequently used as an investment to alleviate losses in times of request stress and also as a barricade against affectation and currency threats.
As an investment Gold is most preferred as compared to tableware, given that tableware prices are always under a constant shadow of the Gold request.
To put the effects into perspective, let’s look at the price of 10 grams of Gold in the time 2000 as compared to the price of the same volume of Gold in 2021. In the time 2000, the price of 10g of 24K Gold cost as low as 4400 INR while the price of the same volume in 2021 presently is close to,000 INR, a total gain of 1036 in 21 times (CAGR of12.27).
As you can see then, Gold is a fairly smarter option to invest in as compared to fixed deposits in a Bank (7) or some low-threat collective finances (8- 10).
Hence one can surely consider investing in Gold from the early times in their 20s if they're looking for a safe and fairly liquid option furnishing decent periodic returns. Of course storehouse pitfalls and pitfalls of theft always live when investing in Gold, hence one must be conservative and plan out the storehouse and safety aspects before they start investing in Gold.
10. Stocks
For illustration, a biotech incipiency that only has one academic product in development and no history of deals carries further threat than a so-called “ blue chip ” stock similar as Coca- Cola, which has further than a century of history and harmonious tip payments.
At the same time, unsafe stocks also offer potentially lesser returns.
Conclusion
So in this article, I have mentioned about top 10 ways by which you can make your 20's investments fruitful.
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Finance