Investing is all about picking the right options at the right time.

When you invest at a young age, say, in your 20s, you don’t have as many responsibilities and can pool in 30% to 50% of your earnings in investments. Secondly, since you have just begun to earn, you can also invest in risky options for the promise of higher earnings. Keeping these factors in mind, here are some options that you can invest in when you’re in your 20s.

The flexible company fixed deposits:

These FD (Fixed Deposits) offer an interest rate of starting from 7% on your deposit. Once you retire, you can take advantage of a senior citizen FD and boost the interest rate to 8% or even more.

These deposits are one-time deposits, but, you can open multiple FDs to make the most of your money.

They are highly flexible and can be prematurely withdrawn any time you require the funds. So, if the need arises, you can rest assured that you have access to your money.

You can also select the tenor of your choice and restrict the FD to a short-, medium-, or long-term investment.

7 awesome reasons to invest in Fixed Deposits-1

They also have an option of choosing between cumulative and non-cumulative FDs. This is related to how the interested is calculated and compounded. When you are in your 20s, it is best to choose cumulative FDs. Calculate your Fixed Deposit maturity amount with the help of Bajaj Finance FD Calculator.


Read about whether you should invest in FD or PPF


Public Provident Fund (PPF):

PPF offers you an interest rate that goes up to 7.8%. It is considered to be an extremely safe investment option.

The deposits in PPF are small amounts made on a monthly basis. Hence, they are ideal for salaried individuals and those in their 20s, who are starting out in their career.

PPF if doesn’t offer you liquidity. The deposited amount can only be withdrawn at the lapse of the tenor, which is fixed at 15 years.

Real estate:

Real estate investment involves investing a sum of money into a flat or any other property.

It offers you incredible liquidity as real estate can be bought or sold any time without any restrictions. You can also lease the property and supplement your monthly income.

The tenor for this option is flexible and depends entirely on your requirements. You can exit the investment by selling the property when you feel that it is profitable.

Other forms of real estate investment include investing in real estate projects by purchasing securities in the market.

It is a good idea to invest in property when you are young and enjoy it’s high value as your get older.

Post Office Monthly Income Scheme (POMIS):

Investing in POMIS can offer you an interest rate that goes up to 7.8%. This investment requires a one-time deposit, but you can start several schemes at different post office branches.

The plan is not liquid as the amount in this investment option cannot be withdrawn prematurely. If you choose to make a premature withdrawal, you will be penalised at the rate of 2%–3%.

The tenor for this option is five years and you can extend it by another three years.

Recurring deposits:

Recurring deposits offer you an interest rate that goes up to a substantial 7.5%–8%.

This option involves depositing a sum of money on a monthly basis. Hence it is ideal for salaried individuals from 20-25 years of age who are looking to get into the habit of investing regularly. This deposit gives you the option of steering clear of investing a large sum. You can invest a sum as nominal as Rs.1,000 each month.

The tenor flexible and is usually decided at the time of investment.

The invested amount can be accessed at the end of the tenor which ranges from 6 months to 10 years.

Learn more about low risk, high return investments here

Building a good investment portfolio at a young age is the key to ensuring that you can live a comfortable life once you retire. Once you understand how you should invest your money, the results can guarantee you stable income. This income can be used to finance your daily living expenses, your children’s education and your own healthcare costs once you retire. So, retire without any stress or worry.

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