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12 Best Investment Options in India for everyone in their 20s

investment options india

The word Investment refers to any item or any asset purchased with the main purpose of generating income or appreciation. This item or asset is acquired today with the hope that it will generate income or profit in the future when it is sold. What is bought today helps to create wealth tomorrow. There are several investment options in India.

So the sooner you start investing in the various investment options in India, the better it is for your future.

And is there better time than the 20s to start doing so? College life is over and jobs are in the offing. With campus selection being the norm today, you can secure employment while you are still in your final year in college. So 20s are wonderful years to be in. With new found financial freedom and trying to be responsible at the same time is sometimes very confusing in both personal and professional fronts. All investment options in India are available for those in 20s.

So grab the opportunities as soon as you can and take advantage of early investment for a secured life in your old age. You can choose from the best investment options in India as listed below.

1. Stocks

According to Investopedia, a stock is a share in the ownership of a company. They are equity in any company. Despite the fact that stocks are very volatile in nature many investors consider them as good investment options in India. They can give you very high gains or very deep losses as they depend on how that particular stock or the company is performing in the market. There are brokerage firms which help you to select the right stocks for a small fee. You can do online trading too with the help of a mobile app or a web based trading platform. By taking risks you can make good money, but even if you don’t, with age on your side, you will learn from your mistakes and invest wisely. Choose the right stock as it is one of the best investment options in India now and see your investments grow upwards.

2. Bonds

A bond is a loan or a fixed income investment in which the investor loans funds to a corporate company or to Government is one of choosy investment options in India. This entity borrows the money from you for a definite period of time at a fixed or variable interest rate. After this period is over the entity pays the loan amount back to you with added interest. Buying and selling bonds is not easy as we do not have a market for it. But you can do so indirectly by investing in Debt Mutual Funds or directly through any of trading platforms in secondary market. You can also do so by investing in IPOs (initial public offers) but these are rare. There are tax-free bonds in which you can invest for a longer period of time. They are safer and offer you comparatively lesser returns but can be good investment options in India for everyone in their 20s.

3. Post Office Savings Schemes

This is one of selective investment options in India. You can invest in your nearby post office in their Monthly Income Scheme (MIS) account. The minimum amount for opening an account is Rs 1500 or multiples of Rs 1500 for a period of 5 years. You will get a monthly interest for the full term. You can withdraw the interest or put it in their Recurring Deposit account for the same period. There are other savings schemes like Time Deposit (TD), NSC (for tax saving purpose) and 15 years Public Provident Fund to choose from. The TD can be taken for 1, 2, 3 or 5 years. The interest is paid annually but is calculated quarterly and compounded. Post Office Savings Schemes are oldest, safest and one of the best investment options in India.

4. Investing in Gold

Gold is considered to be the oldest and the most wildly sought investment options in India as its value increases very quickly. Gold deposit scheme, Gold ETF, Gold Bars, Gold Mutual Funds provide good investment options in a short period of time. Buying a small gold coin during festivals is considered very auspicious even today. Even banks sell them at a specific time. You can keep it as an investment or make an ornament with it or sell it when necessary, thus establishing it as one of traditional investment options in India.

5. Mutual Funds

Mutual funds are the best investment options in India now. When you start investing in your 20s, you have the biggest advantage of the number of years left to see your wealth increase by leaps and bounds. You can choose to invest a lump some money at one go or select a Systematic Investment Plan (SIP) through your bank. If you see that you fund is not doing well in the market then you can switch over to a better fund. The tremendous increase in number of mutual funds and their popularity puts them on par with other top investment options in India.

6. Provident Fund

It is an ideal saving instrument and one of good investment options in India for the lower income workers who are in their 20s.  If you expect your tax payable during retirement will be more than what you are currently paying then this plan is ideally suited for you. Public Provident Fund (PPF) and Employees Provident Fund (EPF) come under this category. The invested amount is tax-free up to a limit of Rs. 1.5 lakhs under section 80 C and the withdrawn amount is exempted from income tax. It is one of very valued investment options in India with withdrawal facility before and after retirement.

7. Corporate Fixed Deposits

The Company Fixed Deposits is another of investment options in India and they hold some element of risk but give more interest than the bank FDs. They do not come under any insurance benefit nor are they controlled by the Reserve Bank of India. When you opt for investing in Company Fixed Deposits do so for a longer period of time for higher interest rates but the risk factor will be high too. This is very suitable investment options in India for those who aspire for high interest rates and can take some amount of risk.

8. Commodities

Commodities are raw materials used in commerce to make other products. They can be agricultural (coffee, wheat, corn) or energy (natural gas, crude oil) or metals (gold, silver, iron). You can invest in commodities through a futures contract. Gold can be purchased online for as less as Re 1 with the help of Paytm Gold. So these investment options in India can be considered.

In this kind of investment options in India, you can earn huge profits or incur heavy losses. So choose wisely. Saving in commodity market should be for a longer period of time to earn good returns. Have a diversified portfolio and invest a small part of your money in the commodity market. This is one of discriminatory investment options in India for those who are aware of the procedures.

9. Life Insurance Plans

This is one of mandatory investment options in India for life coverage. There are several life insurance plans that suit youngsters. Unit Linked Insurance Plan or ULIP is a combination of insurance and investment. It provides you with risk cover for your life and gives you the option to invest in stocks, mutual funds or bonds. Term life insurance is a good option at young age as the premium will be less for protection and coverage for high sum assured. Endowment life insurance plans will suit to fulfill one’s future goals like children education, marriage, wealth accumulation, retirement etc. So choosing the right insurance plan can be a good investment options in India in your 20s.

10. Real Estate

Real Estate provides good investment options in India if you can start doing so in your 20s. It will help you to get a steady income and long term financial security as its value increases exponentially with the passage of time. It will provide you with tax benefits and help to beat inflation. You can take loan to buy a property. In case if financial necessity, you can mortgage your property to meet your needs. This is one of choice investment options in India where there is invariably appreciation of capital investment amount.

11. Bank Fixed Deposits

This is another of investment options in India. When you deposit a certain sum in a bank for a particular tenure at a fixed rate of interest, it is called as Fixed Deposit or FD. It provides you with a higher rate of interest than what you get in a savings account until the maturity date. Even if the stock market crashes, your funds will remain secured in the bank. You can also get a loan against your FD. Bank FDs are one of safest investment options in India till date.

12. Initial Public Offering (IPO)

IPO is launched by a privately held company only once, at the beginning, to become a public company, giving opportunity to investors can be one of good investment options in India. An IPO is a type of public offering in which shares of a company is sold to the general public and to the institutional investors. If you can buy them during the launch it will be a great advantage to you. If an IPO is launched by a reputed company then its stock is likely to go up during listing. You can make decent money by selling your stock or can stay invested for a longer period of time to earn more. Before investing in IPOs, acquire a good knowledge about the company to avoid losses. This is one of speculative investment options in India.

To achieve financial security in your old age you think ahead of various investment options in India and learn to save more than to spend more. Be aggressive and take risks when you are in your 20s. At older age these investment options in India will give a different comprehension and caution to investors.

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