Your 20s is a crucial phase in life, it is a period when you have just started earning and you are looking for different ways to fulfill your personal desires while making an attempt to save. When it comes to saving, the sooner you start, the better will it be for you. Wealth only grows over a period of time and if you start investing early, you will be able to accumulate wealth. If you are in your 20s, here are the top five investment options for you.
Availing of life insurance is a mandatory investment option for every individual. It will cover for your life and will help you enjoy tax benefits. There are many term insurance plans that are suitable for your age. When you buy insurance at a young age, you enjoy a higher coverage at a lower premium amount. Term plans provide a cover for your life and ensure that your family is financially secure in the case of your absence.
Stocks are an equity in a company and they are volatile in nature but investors consider them as an ideal high-return investment option. You can get extremely high gains if you invest right. In order to invest in stocks, you need to have financial and economic knowledge and understand the movement of the equity market. Many brokerage firms can help you select the right stocks.
The oldest form of investment in India, gold has consistently increased in value. If you are not keen on investing into physical gold due to problems of storage, you can choose to invest in gold bonds, gold exchange-traded funds (ETFs) or even mutual funds. It is a good investment option if you are just starting out. You can also begin with buying gold coins for special occasions.
This is a low-risk investment option that generates consistent returns. It also helps save tax. Any amount invested in the provident fund is exempt up to INR 1.5 lakh under Section 80C of the Income Tax Act, 1961. You earn interest on the amount invested and it has a lock-in period of 15 years.
One of the top investment options currently, mutual funds will ensure that your wealth grows steadily over a period. You can choose to either invest a lump sum or opt for monthly systematic investments plans (SIPs). You get to choose the fund you want to invest in and you can also switch between funds if you think one is not performing well. There are various debt, equity, and hybrid mutual fund plans to choose from.
These are the top five investment options for those who are in their 20s. However, before you consider any other investment option, it is advisable to buy a term plan online. Nothing is as important as your life, which is highly uncertain. Secure the future of your family with the right term plan and then go for other investment options.