You are indeed a millennial if you had been born between 1981 and 1994. This indicates that you are between the ages of 27 and 40 and have likely taken on more obligations in life, such as marrying and establishing a family. As a millennial, you’re more likely to be financially self-sufficient and capable of handling obligations.
You might want to pursue higher education, explore the world, or buy your ideal home, among other things. To achieve these objectives, you must first determine which plan options to invest in. Investing in the correct plan might give you profits that will enable you to effortlessly reach your financial objectives.
Following are some investment options for Millennials.
Insurance Plans with Units (ULIPs)
Start with ULIPs because they provide a wide range of risky & non-risky instruments to pick from, including equity funds, debt mutual funds, and balanced funds. You can also invest in debt funds if you are a cautious investor. You can profit from life insurance coverage in addition to wealth building. For the most part, ULIPs is the finest investment plan for millennials.
They also provide benefits such as tax-free withdrawals, liquidity structuring, low-cost availability, and ease of transferring across funds (to avoid market risk).
PPF stands for Public Provident Fund
It is significant to have a compounding of tax-free interest through PPFs for a 15-year tenure. Both the elder generation and millennials consider it as one of the greatest long-term investment ideas. It provides both stable interest income and tax-advantaged investment benefits.
Equity-Linked Savings Accounts (ELSAs) are a type of EL (ELSS Mutual Funds)
Working professionals consider ELSS to be the greatest investment option. Because it is different from other investment options, most millennials choose ELSS, which is a high-risk investment option compared to post office schemes. The distinction is that it is a diversified equities mutual fund that provides tax benefits of up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
National Pension System (NPS)
The Pension Fund Regulatory and Development Authority launched the NPS in 1999, and it is an exceptionally broad retirement plan, even for millennials. It is a wonderful mix of fixed deposits, stocks, corporate bonds, government bonds, and liquid funds, making it one of the finest investment options for millennials in 2022.
Plans for Life Insurance
Because the level of living has risen, the current generation does not want their dependents to suffer as a result, even if they are not present. Purchasing a life insurance policy is an investment that never goes out of style, and it is one of the finest investment options for millennials. You pay the premium, and your family can continue to live their lives as before. Your dependent family member can utilize the policy’s proceeds to cover future living expenses, marriage, and higher education.
Investment options for millennials early can assist you in aligning your goals with your shifting requirements and income. Start investing as soon as possible, as the longer you wait, the less time your money has to grow. This will allow you to celebrate life’s milestones while also ensuring that you are financially prepared for any eventuality.