Best Investment Options in India for Young Age Adults ((20 to 30 Years) in 2022-2023
Here we will understand Best Investment Options in India for Young Age Adults ((20 to 30 Years) in 2022-2023.
How to Select Best Investment Options in India for Young Age Adults (20 to 30 Years) in 2022-2023
It is important to understand that investment into different instruments or asset classes should be based on your age, Investment Goals (long or short term), liabilities and so on. There are multiple Investment Options with High Returns to choose from but one should keep these points in mind before they start investing.
Based on the above point, let us discuss the best investment options in India for young age adults of age group 20s to 30s and how much one should allocate into Gold, Equity and Fixed Assets.
Thumb Rule of Investment Allocation
(100 – Your Age = Investment Allocation)
Meaning, if you are in the age group 20-30’s then you need to allocate 70% (100-30 = 70) of your investment into Equity (Direct Stocks, Mutual Funds, etc) and 30% into Debt (Bank FD, Bonds, etc).
Also, consider investing 10-15% in Gold through Gold SIP and in case you have a long term goal then you should invest in Gold through SGB (Sovereign Gold Bonds) vehicle.
Learn:
- Best Investment Options for Senior Citizens
- Portfolio Vs Age – Portfolio and Age Relationship
- Diversified Portfolio – Why?
Best investment options in India for Young Age Adults of Age 30 to 30 Years
| S. No | Investment Option | Action | |
| 1. | Term Insurance | : | Buy a term insurance to get benefit of low premium when you start early at young age and to cover yourself against some of the liabilities like Marriage, Child, Home Loan, etc. |
| 2. | Fixed Assets | : | PPF (savings for your retirement) and NPS (for extra tax saving advantage) where PPF has a lock-in period of 15 years but it has its own long term benefits as well. |
| 3. | GOLD | : | Consider investing in “SBI MF Direct Plan” through SGB vehicle. |
| 4. | Direct Equity | : | Equity exposure is a must at young age for long term investment goals. |
| 5. | SIP Mutual Fund | : | Investment in Mutual Fund is not the same for all age groups. So let us have a look at some of the top most and best performing mutual funds you can choose to invest in to get the highest return on your investment. |
| 5.a. | PGIM India Flexi Cap Fund, Direct Growth (Earlier known as PGIM India Diversified Equity Fund) : An open ended dynamic equity scheme investing across large cap, mid cap, small cap stocks. | ||
| 5.b. | Mirae Asset Emerging Bluechip Fund, Direct Growth : An open-ended equity scheme investing in both large cap and mid cap stocks. | ||
| 5.c. | Kotak Emerging Equity Fund, Direct Growth : An Open-ended equity scheme that predominantly invests in Mid Cap companies that have potential to shine in the future. | ||
| 5.d. | SBI Small Cap Fund, Direct Growth : Aims to provide investors with opportunities for long-term growth in capital by investing predominantly in a well-diversified basket of equity stocks of small cap companies. | ||
| 5.e. | SBI Banking and Financial Services Fund, Direct Growth : Investors who have advanced knowledge of macro trends and prefer to take selective bets for higher returns compared to other Equity funds. At the same time, these investors should also be ready for the possibility of moderate to high losses in their investments even though the overall market is performing better. | ||
Learn:
- How to Save Money?
- How Much Money to Invest in Stocks and Mutual Fund
- For How Long Should I Invest in Stocks or Mutual Fund
Age Wise Investment Portfolio Table
| Age | Investment Portfolio | |
| Above 60 | : | » 40% in Stocks and Mutual Funds » 10% in Cash » 50% in Fixed Income |
| 50 to 60 | : | » 50% in Stocks and Mutual Funds » 10% in Cash » 40% in Fixed Income |
| 40 to 50 | : | » 60% in Stocks and Mutual Funds » 10% in Cash » 30% in Fixed Income |
| 30 to 40 | : | » 70% in Stocks and Mutual Funds » 10% in Cash » 20% in Fixed Income |
| Below 30 | : | » 80% in Stocks and Mutual Funds » 10% in Cash » 10% in Fixed Income |
Investment FAQs
What is Investment and its Types?
I have already Explained it Here: Types of Investment
What are the 4 Types of Investments?
4 Types of Investment are:
- Growth Investments: These are long-terms investments for capital appreciation. Examples - Growth Stocks, Real Estate Property.
- Defensive Investments: These are Low Risk Regular Income Generating Investments. Example - Cash Investments and Fixed Interest Investments.
- Cash Investments: Defensive Investment. Examples - Savings Bank Bank A/Cs, Term Deposits.
- Fixed Interest Investments: Defensive Investment. Examples - Government Bonds.
Stock Market Sectors - 4 Major Sectors and 11 Sub Sectors
How do I invest my Money?
- Decide on the Type of Investment you want to make - Growth (Long-Term Stocks or Real Estate) or Defensive (Cash or Interest Investment).
- In order to Invest in Real Estate Property, you will need huge finance.
- For Investment in Growth Stocks, you will need a Demat Account with a Trading Account linked with a Bank Savings A/C.
- For Cash Investment open a Bank FD to earn Interest.
- For Fixed Interest Investment, buy Bonds.
How do Beginners Invest?
Beginners can start with Low-Risk Investment Options such as Mutual Funds via SIP or Cash Investment such as Bank FD. Once they gain knowledge and experience, they can shift to much complex Growth Investment Options.
What is Difference Between Savings and Investment
| Savings | Investment |
| It the money you set aside from your income for some particular goal like - Emergency, Education for Children, buying a car, tour or travel etc. No Risk, Less Growth. | Putting your money at a place to allow it to grow and provide returns. Returns can be used for bigger financial goals like - Buying a house, higher education for children etc. High Risk, High Return. |
Types of Investments Based on Risk Profile
| Low Risk | Medium Risk | High Risk |
| Less-Risk, Less-Returns. Examples - Govt. and Corporate Bonds, Treasury Notes, Bank FD. | Moderate-Risk, Moderate-Return. Examples - Preferred and Utility Stocks, Income Mutual Funds. | High-Risk, High-Returns. Examples - Equity Investment, Mutual Funds, ULIPs.etc. |
Life Stages and Investment Plans
- First Job: This is First Stage and START of investment journey for Beginners. Since, you have limited income and savings, you need an affordable Investment Plan that does not require Lump Sum Money. Few good Investment Options for People with First Job are - SIP in MFs, ELSS (equity-linked savings scheme), ULIPs and Term Insurance.
- Marriage: This is the second stage of life. You need to focus of family planning, healthcare and other long-term goals. Few good Investment Option for people in this very important stage of life are - Personal and Family Health Insurance, PPF (Public Provident Fund), ULIP (Unit Linked Insurance Plan) and NPS (National Pension Scheme)
- Child Birth, Buying a House, Children Education: This stage of life demands long-terms Investments to make life secure. Few good Investment Options in this Stage are - ULIPs and Savings Plans.
- Retirement: This is the 4Th stage of Life and Investment. You cannot take high risks. Investment must be safe and secure. Few good options are - Money Back Plans, Bank FD, Immediate Annuity Plans and Unit-linked Retirement Plans.
Learn:
- Portfolio Vs Age – Portfolio and Age Relationship
- Best Investment Options for Senior Citizens
- Best Investment Options in India for Young Age Adults
Conclusion & Disclaimer:
So, what are the Best Investment Options in India for Young Age Adults between the age group of 20 to 30 Years?
Well, the answer is fairly simple. There are so many options to choose from but the one mentioned above are considered to be the best and safest and much more reliable when compared to other instruments available in the market.
Keep this in mind: Do not invest in any instrument or asset class for a long term but do your own analysis before investing.
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Also Read:
- Introduction to Stock Market in India
- Types of Investors in Stock Market
- How to Open Demat Account in India?
- Types of Orders in Stock Market in India
- What is Investment Club?
- How to Pick Best Stocks to Buy in India
- When to Buy or Sell Stocks
- Why Invest in Textile Stocks in India?
- Digital Gold Investment
- Mutual Fund SIP Investment @ Rs. 100 Per Month
- Fixed Deposit vs Savings Account – Which is Better Option?
- Top 10 Investment Banks in the World
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