While the Indian economy powers ahead to overtake many developed countries in terms of GDP growth, Millennial and GenZ citizens continue to form the bedrock of our nation’s demographic dividend and remain critical to its future success. Being more inclined towards adopting technological advancements, both across consumption and investment-related themes, this young working population ought to consciously invest in building a healthy corpus that can sustain their improved standards of living. To do this, it is critical for them to start investing early and follow a robust investment strategy that compounds savings while offering adequate insurance protection. Let us look at top smart money investment avenues and important insurance products that should be considered when creating such a holistic strategy.
For young adults looking to start their investing journey, a good starting point is to first have a clear understanding of their current and future expenses. This includes taking into account monthly expenses, short-term expenses as well as longer-term milestones that need to be planned for. After considering inflation rates, one can arrive at the future value of money needed to fulfil these needs and aspirations, thereby helping with how much corpus is required to sufficiently meet them in the due course of time.
In order to meet non-discretionary expenses, it is always suggested to invest in savings instruments like fixed and recurring deposits, especially since they can be easily liquidated in times of need. Additionally, tax-efficient saving instruments like the Public Provident Fund (PPF), National Savings Certificate (NSC) and their like should be explored for saving up for future expenses like a child’s higher
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