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With millennials and technology coming together, more and more Indians are bringing a change in their investment patterns. There are many more options available today as compared to the traditional ones like insurance, real estate, and FDs, and the young are not shy to explore them. 

In your 20’s, you have a huge tenure for your investment portfolio to grow and hence if you follow the basics to the tee, your investment portfolio can reap multiple benefits in the long run. Here are some steps for you to follow:

Start with SIPs

SIPs are very popular with the younger generation. If you are in your 20s, investing in a SIP is just the thing for you. SIPs are well suited because you can invest with as little as INR 500 a month. Money is a bit tight in your early adulthood and so small investment opportunities such as SIPs help. You also get the benefit of compounded interest as you can stay invested for a longer period of time when you begin the investment early on in life.

Insure yourself

It is the best decision to buy your insurance policy in your 20s as at this stage you get the plan at a lower rate. You can get a life insurance plan at a throw-away price and stay covered till you are 60 years old (or more). This is a long-term move as buying the same policy 10 years later will cost you a lot more money.

The same holds true for health insurance. As a fit and healthy 20-something-year-old, you may not even think of health insurance. However, even a small bike accident can leave you poorer by lakhs of rupees. Get a health insurance policy now and keep your money and health covered and also get the plan at a lower rate.

Invest to beat inflation

As a 20-something-year-old, you would typically not have too many family responsibilities. Also, your risk-taking capacities would be higher. This is why you should look to invest in products that help beat inflation in the long run. 

Remember, what you can buy today with INR 100, will cost you a lot more in a decade’s time, when you will also have a family to look after. So, look to invest some of your money in gold bonds, commodities, and real estate. These are investments that help you to beat inflation and get higher yields when you are older.

Diversify your investments 

The key to maintaining any successful financial portfolio is to diversify the investments. It is simpler for younger adults to diversify their investments because of several reasons. 

First and foremost, if you are in your 20s you have better access to technology. You can easily research and find out about the various investment platforms. In fact, you can invest according to your risk appetite as well. For a higher risk appetite, you can venture into direct equity or equity mutual funds, gold, etc. and for a lower risk appetite, you can opt for fixed income instruments such as fixed deposits, post office saving schemes, etc. 

Ensure you have a good mix of investments as that spreads out the risk. Along with that, it allows you to become a disciplined and serious investor too. This would help you create a healthy investment portfolio for yourself.

Explore new products

Along with the evergreen investment products, it is a good idea to keep yourself updated with the newer investment opportunities as well. Make use of your risk-taking capacity and explore areas such as cryptocurrency and CDS (credit default swap). These are still in their nascent stages and for a young and tech-savvy person who is serious about financial matters, such investments may bring in excellent results. 

Summing It Up
For most of you who are in your 20s, it is the first as well as the best time to make investing a priority. However, eagerness is not enough to make you a successful investor. There has to be the right balance between intelligent and aggressive investments. 

Disclaimer: Investment in securities and other investment products is subject to market risks; read all the related terms and documents carefully before investing.