In today’s fast-paced world, it is important for people to start investing early to secure their financial future. With so many investment options available, it can be overwhelming to choose the right ones that align with your goals and risk tolerance. However, there are new-age investment tools that make investing more accessible and diverse for the younger generation.
Best tools for beginner investors
Let’s explore the best tools that can empower Gen Z to confidently start their investment journey.
HDFC Life Smart Protect Plan
Successful investments require patience and a long-term investment plan. HDFC Life Smart Protect Plan is an ULIP that addresses long-term saving needs and provides life cover. It is a preferred investment tool for retirement planning, wealth creation, and unforeseen expenses.
Gilt funds
Gilt funds are becoming popular among young investors because of their low-risk nature and stable returns. These funds primarily invest in government securities. It makes them safer than other debt instruments. With online platforms, people can easily invest in gilt funds with just a few clicks. It makes an ideal option for those who are risk-averse or new to investing.
ULIPs (Unit Linked Insurance Plans)
These have become a popular investment-cum-insurance product for people. They offer the benefits of wealth creation and life cover.HDFC Life Smart Protect Plan is a ULIP that provides long-term savings and financial protection for your loved ones.With features like fund switching and partial withdrawals. It offers flexibility and control over your investment portfolio. It makes it attractive for young investors seeking growth potential and risk mitigation.
Bonds
Bonds have traditionally been considered a conservative investment option. However, they can still be a valuable tool for people. Bonds provide a fixed income stream and are relatively low-risk compared to other investments.They can be a stable addition to an investment portfolio, especially for those who prefer a more cautious approach.
Mutual funds
Mutual funds are another investment option that can benefit the people. These funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets.They offer the advantage of professional management and can be a good way to start investing with a smaller amount of money.Mutual funds come in different types, such as equity funds, debt funds, and balanced funds, allowing investors to choose based on their risk tolerance and financial goals.
Public Provident Fund (PPF)
It is considered as one of the most dependable long-term investment choices in India.It provides appealing interest rates and tax advantages. Young individuals can initiate their investment in PPF at an early stage and benefit from the compounding effect over time. With the option to contribute as low as Rs. 500 annually, PPF is accessible to people from all income brackets. It makes an excellent option for young investors who aim to establish a stable financial future.
