What is the golden rule about investing? Investing is all about selecting the right options at the right time!
Yes, if you have just started to work and taking home a decent salary, getting started with an investment option when you are in your 20s should be the best thing to happen to you!
It’s because when you are in your 20s, there are not many responsibilities on your shoulders compared to when you move in your 30s and 40s. Hence, you can easily keep around 30-50% of your income towards investments. Also, your risk appetite is higher when you have just begun making money.
In the same context, let’s provide you five good investment plans for salaried people like you who are in their 20s.
- The fixed deposit schemes of NBFCs
Although banks and non-banking finance companies (NBFCs) both offer FDs, a Company Fixed Deposit can give you a higher return on your investment at a rate of 7.85%. What’s more, the investment is one-time, and its ROI is unaffected by market fluctuations. It means that there is a surety of getting what you kept your money! You can also withdraw the money if you face an urgent need, and also avail a loan against it if you don’t want to break it. Company fixed deposit schemes also offer flexible tenor to assist your needs and affordability. ICRA’s CRISIL’s safety ratings further make FDs a formidable investment option.
- Public Provident Fund (PPF)
Public Provident Funds or PPFs are another lucrative investment option whose interest rate could go as high as 7.8% and are safe! The deposits in a PPF plan is made on a monthly basis. As a result, it’s good for salaried class individuals or people in their 20s. You need to know that PPF does not offer liquidity like fixed deposits as you can withdraw it only after maturity which is fixed at 15 years.
- Real estate
Real estate may need you investing some money in flat or other property. Real estate investments provide amazing liquidity as you can sell off a flat, make some profits and purchase a new one. You can also lease out a property or rent it out and manage the money out of it for your monthly spending. If you have enough money, investing in real estate is a great idea, and you should not miss it!
Also Check: Fixed Deposit Vs Real Estates – Where to Invest
- Post Office Monthly Income Scheme (POMIS)
Did you know that investing in a Post Office Monthly Income Scheme can land you an interest rate as high as 7.8%? Yes, it’s a one-time investment, and you can open many schemes at different post office branches. You can’t withdraw the amount until the maturity of the fund, and even if you do it, you may be charged 2-3%. The tenor of the scheme is five years and could be extended further by three years after the maturity.
- Recurring deposits (RDs)
Recurring deposits can offer you interest rates in the range of 6.5-8%. You need to invest a fixed amount on a monthly basis and you are provided interest on it. You can begin investing with as low as Rs.500 per month with a tenor beginning six months. The benefit of this scheme is that it offers liquidity as you can break it and get your money back instantly.
The Bottom Line
Don’t wait for the ‘right’ time to come to begin an investment for your future! There is nothing called the right time; the right time is ‘now’ when you are in the 20s as that’s when the investment will reap you greater rewards! Go ahead and start investing today!
Also Read: Complete Guide to Investing
