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The Best Investments for Young People

In today’s world everybody wants to make quick money, everybody wants high returns with low investment. Right now, the equity market is at all time high, and at some point in the future, it will pull back. Before investing in stock market you need to have up to date knowledge about it. If you’re a young investor and don’t want to see an immediate declinein your portfolio or don’t want take bigger risk, now’s a good time to consider short term investment options. Short term investments typically don’t see the growth of longer term investments, but that’s because they are designed with safety and a short amount of time in mind.

On the other hand, if you want to plan your long term investment at your 20s then we have short listed best investment options which one can choose as per the risk appetite:

Stock Market:

After the correction in stock markets, valuation looks reasonable. Easiest investments to handle in terms of investing and liquidating.One of the main advantages of equity investments is that small amounts can be spread across various small, mid and large cap stocks or mutual funds and hence you can design and get a portfolio suiting your risk profile and return expectations

Mutual fund:

Those who want to invest in equities but don’t want to take higher risk generally choose to invest in mutual funds. One of the best investment options is a mutual fund for a long time by SIP where one can invest on monthly basis. A young on can easily start investing through SIP starting from Rs.500 per month.

Gold ETF:

In India, Gold is one of traditional and evergreen product almost everyone would love to invest. It would be difficult to invest in gold for young once so they can invest in Gold ETFs (Exchange traded funds) where you can purchase a share of gold and enjoy the gains.

IPO (Initial Public Offerings):

IPOs is opportunity as it happens only once in every company. It gives very attractive returns if it is launched by reputed company.Selecting best companies would lead to lower risk and high returns. Maximum investment per lot would be approximately Rs.15,000.

Saving for Retirement:

For young one the greatest financial asset would be time. Investors who have money should start planning for retirement because they have more time and options to invest in. Historical data clearly says that stocks and real estate are the two fast growing assets where one can invest and stay invested for long term.

 

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