Articles 558 views January 3, 2020

Top 10 Investment Plans for Millennials

As a millennial, you are just starting your career. This is a great time, to begin with, your investments as all investments done early on in life reap higher benefits. Most millennials are single and free of familial responsibilities. As a result, fixing the money is easier as they don’t have to worry about providing for a family just yet. This apart, many investments such as insurance, are available at lower costs to people who are young and healthy. Take a look at this article to know more about the top 10 investment plans for millennials in 2020.

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The Top 10 Investment Plans for Millennials in 2020

Here are the best options for youngsters looking to invest their money:

1. Term life insurance

Life insurance is of great importance to everyone. This is why you too need to invest in a good life insurance product. A good option for you is the term life insurance plans. A term plan offers high coverage at a low cost. As a youngster who does not have a family and is healthy will get the plan at an extremely low rate. Make full use of your age and buy a term life cover now and keep it active till you are 60 or 70 years old. You will need a term cover later, so might as well buy it now when the price is low.

2. Health insurance

Just like life insurance, health insurance is also a major requirement in everyone’s life. You need health insurance even if you are young and healthy. Here too, you get the plan at a low cost when you are fit. Invest in a good health insurance plan and keep your health and your wealth simultaneously. Compare the options and find a suitable health plan that matches your budget.

3. ULIP

A ULIP or a unit-linked insurance plan is a type of life insurance that combines insurance and investments. A part of the premium you pay is safely tucked into a life fund and paid to your family if you die. The other part is invested in the markets. The latter earns dividends and makes your wealth grow. You can choose the funds to invest in, depending on how much risk you want to take. A ULIP is a great beginner’s tool to start with investments.

4. Pension Plan

As a millennial, you are too young to even think about your retirement, right? Wrong! This is actually the most appropriate time to start saving for your retirement years. When you begin early, you can build up your corpus in a relaxed manner, over many years. In the process, you can also find a diligent savings scheme, a tax saving option and a very good way to secure your future. The options under this category include the National Pension Scheme or the retirement life insurance plans.

5. Public Provident Fund

The Public Provident Fund, or PPF as it is better known, is a post office savings scheme in India. It features in the list of the top 10 investment plans for millennials in 2020 because it offers multiple benefits. To begin with, a PPF allows you to make small investments and build up a large corpus. It also offers a healthy rate of interest which further accelerates your wealth. And finally, it helps you to save tax under Section 80 C of the Indian Income Tax Act.

6. Mutual Funds

Mutual funds are excellent savings options for everyone, including the millennials. You can get very high returns when you invest in a mutual fund. However, you should be very careful when investing and understand the risks involved. Careless investments can lead to huge losses, so be careful of the risks before you invest in a mutual fund.

7. Fixed Deposits

Fixed deposits are safer options. You should definitely lock away some portion of your money in a fixed deposit. Choose a proper duration and watch your money grow in a secure and risk-free manner.

8. Gold

If you have some cash lying idle, invest in gold, as gold prices are guaranteed to rise over time. You can buy gold bars or gold ornaments.

9. Education fund

If you plan to study in the future, start building a fund and investing small amounts of money into it regularly.

10. Real Estate

It is always a good idea to pay EMIs than to pay rent. Get a house of your own as early on as possible as that is, undoubtedly, one of the best investment options available to you.

Keep these interest investment options in mind and use your money wisely. You can choose a few or all of these options, depending on what your financial health is and also upon your risk-taking capabilities. The list of the top 10 investment plans for millennials in 2020 is comprehensive and of great use.