Due to the increasing need for new age innovations and strategies, a majority of young investors are keen on trying their hands in the equity markets. These young investors who are termed as ‘millenials’ are very particular about the investment choices that they make. Unlike their parents, millennials do not prefer investment in traditional plans since they are high-risk bearers.
On the other hand, irrespective of the risk appetite, it is always the best to invest in the right type of investment plan. The best investment plan will not only garner high returns but also provide low costs on your funds. Due to the constant development in the technology itself, investors find it easier to select the appropriate plan that will suit their business need. So if you’re ready to sail on the high seas of investment, then check out these plans that are effective for your new venture:
List of investment options for millennials:
1. Unit Linked Insurance Plan (ULIP)
Whether you’re a young investor or a middle-aged one, opting for ULIPs is considered as an ideal choice. ULIPs attract a majority of investors due to its maximum gains and minimum costs. Additionally, its dual benefits of investment and insurance are what does the job of the investors. Investment in a ULIP plan not only promises the security of your family needs but also your equal participation of the investors in the equity markets.
2. National Savings Certificate (NSC)
An epitome of aging gracefully over the years is none other than the National Savings Certificate (NSC). Due to its popularity for providing fixed schemes of income, NSC is the most preferred investment option for every young millennial investor. Since it’s not possible for a lot of millennials to invest a considerable sum of amount altogether, NSC allows accumulation of Rs. 100, at the beginning of the policy.
3. Public Provident Fund (PPF)
Although a traditional means of investment, PPFs are the type which your father will undoubtedly approve immediately. Secured for its rightful benefits, PPFs are a must-have for every millennial. This is because of its low risks factor, tax savings benefits as well as a steady rate of interest on the invested funds. The excellent news about opting for a PPF policy is that the interest rate is fixed by the Government of India which makes it an ideal choice for long term investment.
4. Peer to Peer Lending System
It’s no secret that the millennials are tech-savvy. Keeping this in mind, peer to peer lending system has been introduced to safeguard their interests. A peer to peer lending is a platform allowed to young investors for borrowing and lending purpose. The prime reason for the introduction of this type of investment policy is to tone down the risks of investments. In addition to this, peer to peer lending system acts as a link between the lenders and the borrowers.
5. Fixed Deposit (FD)
If you’re looking for the best investment options that allow maximum safety and security, then see to it that you park all your savings in a fixed deposit. Any banking or a non-banking facility offers its investors with the benefits of a fixed deposit system. FDs are considered as an ideal choice for millennials as it provides financial stability, even in times of market fluctuations.
Since millennials tend to be impulsive in nature, do not give in to the first option that pops in your mind. Scrutinize all the other investment options, understand where to invest money, and only then finalize the best investment plan. The final plan that you decide to opt for should help with all your investment decision throughout the life of your policy.