10 Best Investment Ideas for Millennials in 2024

Millennials, who came before Generation Z, have a unique way of handling their money. Studies show that millennials are less likely to save money than their parents and grandparents. Here are the best investment ideas for the millennials to save money.

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Right now, Generation Z is at a very important point in their journey to building great careers. These people are now the main source of income for many families, making up 70% of the total family income.

But along with this change, people are becoming more aware of how important it is to save money and spend it.

They don’t seem as interested in saving money for the future and instead seem to be drawn to a more selfish way of life. What if there was a way to get their attention and get them to think about money in a different way?

Best Investment Ideas for Millennials

Millennials have the opportunity to break away from traditional financial norms and embrace a world of investment possibilities. By exploring these investment ideas, they can set themselves on a path to financial success and secure their future. It’s time to unlock the potential of their hard-earned money and watch it grow.

1. Debt Funds

Debt funds invest in fixed-income assets such as treasury bills, corporate bonds, commercial papers, government securities, and a variety of other money market instruments.

All of these products have a predetermined maturity date and interest rate that the buyer can earn at maturity, thus the name fixed-income securities.

Market changes normally have no effect on the returns. As a result, debt securities are seen as low-risk investment options.

Here are some of the best debt funds:

IDFC Government Securities Fund
IDFC Government Securities Investment Plan Fund
ICICI Prudential Constant Maturity Gilt Fund
Nippon India Nivesh Lakshya Fund
DSP Government Securities Fund

2. Mutual Funds

Mutual funds are a financial vehicle that many investors are wary of. Despite the fact that these investment options are closely tied to market performance, their high rates of return should not be overlooked.

Mutual funds are typically the finest investment vehicles for those who desire to invest in the market but lack the necessary skills. Your funds will be managed by a fund manager who will invest in stocks and bonds of various firms in order to generate a profit.

3. Fixed Deposits

Fixed-income investments are the most common type of investment. Fixed deposits are one of the greatest investing options because of the guaranteed rate of return. Fixed deposits are suitable for people who are just starting out in their careers.

The only disadvantage of this investment strategy is its low rate of return. Fixed deposits are the most popular type of investment due to their flexibility and convenience of usage.

4. PPF

In India, public provident funds are regarded as the most secure long-term investment vehicles. The best thing about investing in public provident funds is that they are tax-free.

The minimum amount of time you must invest in a PPF is 15 years. However, if you need money, you can withdraw cash from your PPF after 6 years.

5. Gold

Gold is the investment with the lowest probability of losing value. Investing in gold may not sound as thrilling as many other options, but it could be the best decision for millennials.

You can buy gold jewelry based on your budget and fashion preferences and then store it safely in your locker. Gold’s value will rise with time, and you will profit from your investment.

6. Crypto

Despite the fact that cryptocurrencies are not regulated in India, millennials are the driving force behind the adoption of these new-age digital assets in the country.

According to experts, ease of access to crypto exchanges via mobile apps, as well as the active engagement of millennial role models such as Elon Musk, has further pushed millennials towards cryptocurrency.

7. National Pension System

To invest in NPS, you must first choose a fund manager and then choose between Active and Auto Choice. The active option allows you to diversify your investments across asset classes.

Based on your risk profile, Auto Choice does it for you (read age). E – Equities, C – Corporate debt, G – Government securities, and A – Alternative investment are the asset classes.

8. SIP

SIP in mutual funds allows you to invest a set amount of money in your preferred fund at regular intervals.

SIP is a sort of forced savings if you look closely. Your money accumulates and increases in an SIP at the same time.

9. Digital Lending

Digital lending via various online platforms has become one of millennials’ many new money-making activities. Millennials dominate both digital lending and borrowing on its platform.

It is one of the fastest-growing financial industries in India due to its technological prowess, platform simplicity, and resilience to market volatility.

10. Insurance

Life stage goals are one of the biggest motivators to invest in insurance or even start a retirement plan.

The penetration of health insurance is comparatively low, and you might want to start an investment journey to safeguard against health expenditure.

Conclusion

The truth is, that most Gen Z have a larger risk appetite, and they are not satisfied with fixed-income savings. No wonder they have shown much less interest in savings schemes. These can be some of the ideas to kick start an investing journey hassle-free.

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