Being young is probably the best part of our lives, as we are brimming with energy and there’s plenty to explore and look forward to. However, when it comes to investments, not many youngsters are sure about what to do. Youngsters are often too busy with their careers, friends, parties, and their dreams and aspirations to think about investments. Thankfully, the advantage that youngsters have is that they have time on their side. They can afford a few years of indulgence. And when they finally get a bit serious about investments, they can also afford to choose investments that carry moderate to high risks. Most youngsters don’t have any immediate financial responsibilities, so they can put their money in high-risk, high-return investment options. For better understanding, let’s briefly discuss 8 great investment ideas for youngsters.
This is the most prominent investment option available for youngsters. Young people like challenges and excitement, something that they can derive from equity investments. Day trading in equities is like a roller-coaster ride and it can provide the adrenaline rush youngsters are looking for. Another great thing about intraday equity investments is the potential for huge profits. Youngsters like the idea of booking instant profits in intraday equity trading. Certainly, there can be losses too, but youngsters can easily bear such losses. Equity investments can also be done from a long-term perspective, with the goal to achieve returns of around 10-20 percent every year. Equity investment is among the options that provide returns higher than the rate of inflation.
Youngsters who don’t have time to play the stock market on their own can place their money with fund managers through mutual funds. For high-risk, high-returns, youngsters can choose equity-based mutual funds. Youngsters who are looking for security can opt for balanced debt, money market or fixed income mutual funds. Industry-specific mutual funds are also available and these focus on investments in a specific industry. Mutual funds provide adequate returns that are better than conventional investments such as fixed deposits. Another great thing about mutual funds is that you can start with small amounts and continue to grow your investments.
Buying property is no longer the cumbersome and long-drawn process it used to be. Today, it’s possible to book a property online with just a few clicks. Moreover, home loans are readily available, providing finance up to 100 percent of the price of the property. These positive changes have made real estate investments a preferred option for youngsters. Real estate investment is among the options that give returns higher than the rate of inflation. If you buy a property, you can earn rental income from it. The value of the property will also continue to increase every year. Real estate investment can thus give you the twin benefits of regular income and value appreciation. Real estate investments are probably the most secure and profitable in the long term.
Youngsters can invest in physical gold coins or bullion Exchange Traded Fund (ETF). Gold prices have seen significant ups and downs over the years, but they remain adequately profitable in the long term. Gold investments work as an effective hedge against investments risks, which is why it can be useful for young investors. Youngsters who are investing in high-risk options such as equities can include gold in their portfolio to balance their overall risk. Another thing about gold is that it shines more during economic downturns when other investment options start to lose their luster. As such, gold investment can be an effective backup against economic shocks.
Buying cryptocurrency has become hugely popular among youngsters due to the ease of trading and the potential for higher returns. Cryptocurrencies have a certain allure and glamour to them, which attracts young investors. Even though there have been some scams and the RBI has also banned banks and digital wallets from trading in cryptocurrency, experts feel that cryptocurrencies will survive these negative trends. Experts believe that these are temporary setbacks and new rules may be evolved in the future to allow trading in cryptocurrency in India. Even with the RBI ban, investors have the option to transfer their holdings to an international cryptocurrency exchange and get the money remitted from there.
With their appetite for high-risk investments, youngsters can invest in a startup. There are many peer-to-peer crowd-funding organizations that allow people to invest their money in startups. It is also possible that someone in your social or professional circle may have started a new business and may be looking for funds. Many startups have evolved into successful companies, so there’s potential for high returns. On the flip side, if the business fails, you might lose most or all of your investment.
For youngsters with interest in art, buying paintings and other art pieces can be a great investment option. If you purchase the right art, its value will continue to increase over the years. You can take pride in your personal art collection and be assured that your investments are continuously growing in monetary terms. It is also possible to rent your art collection to art galleries or for special exhibitions. This way, you can earn rental income on your art collection.
This is among the easiest investment options for youngsters. Fixed deposits are available at both banks and post offices. Bank fixed deposits can be done and managed online, which works great for youngsters. At the post office, investors can choose options such as term deposits, recurring deposit account, NSC (National Savings Certificates), and KisanVikasPatra (KVP). Fixed deposits can be a good option for youngsters who may not have time to pursue high-risk investments. Fixed deposits also work as an effective hedge against high-risk investment options.
The sooner you start investing, the better it will be for your financial future. By starting early, you can truly harness the power of compounding and long-term value appreciation. For example, if you start investing in equities or real estate at age 25, you will have substantial wealth by the time you retire. With some wise investment decisions in your youth, you can secure a prosperous and fulfilling life for yourself and your loved ones.