Is life getting tough you as a young adult with financial responsibilities? In the process of financial independence, you must make cautious decisions so you can invest your well-earned money in the most appropriate way. Now that the possibilities are countless, picking the best investment options for young adults in India seems like an impossible task. But fear not! Firstly, let me initiate a discussion on some of the most suitable and everybody friendly best investment options in India.
5 Best Investment Options in India
This blog post aims to guide young working professionals in India on selecting suitable investment options to secure their financial future. In this post we will discuss, some of the best investment options in India.
1. Mutual Funds
Apart from having a diversified portfolio managed by professionals, mutual funds provide a good option for those who are just starting their investments. No matter what the deadline is; Either for short-term gains or for wealth accumulation, mutual funds are for appetite and financial goals. Do you know? By 2021, mutual funds had become the most preferred investment avenue among millennials, as evidenced by the assets under management (AUM) valued at approximately ₹34 trillion and above. That means most people have started understanding the importance of mutual funds in India.
Check out: Defining What is Mutual Fund and its types?
2. Equity-Linked Savings Scheme (ELSS)
While ELSS are a good means of saving tax under Section 80C of the Income Tax Act, they are also a great way to invest in equity markets. The lock-in period of ELSS is only three years compared to PPF or FD, giving ELSS the potential to outperform traditional tax-saving instruments. In short, sure enough, the data has shown that ELSS funds have generated average returns of around 12-15% over the long term.
3. National Pension System (NPS)
Planning for retirement may seem a long way off; However, starting early will have a positive impact on your well-being later in your working life. NPS represents the provision of high gross returns to young adults in the later stages by accumulating systematic contributions. Taking additional tax exemption of Rs. 50,000 under Section 80CCD(1B) additionally makes NPS a more attractive investment route. As we speak, NPS has over 1.4 crore subscribers, indicating its growing patronage among young white-collar professionals. In short, National Pension System (NPS) is one of the best long term investment plans in India.
4. Systematic Investment Plans (SIPs)
SIP provides investors an opportunity to be more disciplined with mutual funds by spreading their investments in equal appropriate amounts at regular intervals. This not only makes people more careful about market fluctuations but also creates rupee cost averaging which helps in reducing the sudden impact of market volatility. Investors hope that disciplined investing using SIP will provide a good chance of getting great returns in the long run. SIP can be the best option for long term investment plans in India. Definitely, SIPs look like the best investment options in India with steady incomes.
5. Direct Equity Investment
For those who do not mind the risk being taken in the hope of higher investment, investing directly in equities is the way to go. It's like an individual stock where you buy equity and therefore benefit from the company's performance. However, startup investing in stock market india is a risky game, and informed strategizing research and a diversified portfolio are essential to minimize the risks. Hence, for the last few decades – as per data – the average compound annual return of Bombay Stock Exchange's Sensex has been around 15%, proving the power of stocks when it comes to wealth accumulation.
Choose Kartikey Traders for all Your Financial Needs
Picking the best investment options for young adults in India seems like an impossible task. But fear not! At Kartikey Traders, we provide personalized investment solutions and different types of investment services by understanding your financial needs. So don't look further, contact us to get answers to all your finance related questions.
In addition, consider investing early and having a sound monetary approach can steer you toward your financial success. Either whether you choose to invest only in mutual funds, or ELSS, or NPS, also direct equity, or SIPs, the same principle holds: rooting your investment in your clearly defined financial goals and risk profile. Recall that compounding interest is indeed worth much more than its symbol, so begin investing now to accumulate the fruits of labor from it tomorrow. Happy investing!
Best Investment Options for Young Adults in India.