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9 Best Investment Opportunities For Everyone In Their 20s

When you are in your 20s, you are high on energy, you have just started out as a professional, and you have just started to get the taste of independence. When you are in your 20s, you have time in your favor. It is the best time to make some practical wealth-generating investments. Adequate investing in your 20’s will let you lead a financially secured life. Here is a list of lucrative investment options that you can choose to invest in and secure your future.


Gold is the most wildly sought after investment worldwide because it’s a tangible asset, and it can hedge against inflation. Gold’s value is known for increasing substantially over a long period of time. It has massive growth potential. You can invest in a number of ways. Some of the Gold investment options include Gold ETF, Gold Bars, Gold Mutual Funds, and the Gold Deposit Scheme. Gold is one of the best traditional investment options that you can count on.

Provident Fund

Provident fund is a secured long term investment.It is ideal for risk-averse investors. It brings  risk- free guaranteed returns. An advantage of investing in a Public Provident Fund is that it cannot be attached by the court order to pay off any of your creditors. You don’t have to strain your pocket to invest in a PPF you can invest a minimum of Rs.500 and a maximum of Rs.1, 50,000 in a year. The amount invested in the provident fund is tax-free up to a limit of Rs.1, 50,000 under Sec 80 C of the Income Tax Act. The withdrawal amount is also exempted from taxation. Even though it has a lock-in period of 15 years, it comes with convenient withdrawal options should you need it.


Even though life insurance is the last thing in your mind in your 20s, it is a very logical investment option, especially because when you buy life insurance in your 20s, it’s less expensive. You may argue that you are young and healthy you don’t need life insurance, well that’s all the more reason you should opt for it early on to reap maximum benefit at the lowest possible cost. Life insurance acts as a financial safety net for your loved ones. Apart from life insurance, you should also consider investing in a health insurance plan and a term insurance plan early on in life.

Bank Fixed Deposits

Bank Fixed Deposits are one of the safest investment options. It gives you a higher rate of return than what you get in a savings account till maturity. You can also avail a loan against an FD. Bank Fixed Deposits not only protect your capital but also offers you assured returns. The returns they offer are higher than other risk-free investment tools such as government bonds and treasury bills. Fixed Deposits are a regular source of income investment.  It is a liquid investment. Should you face a financial crisis, you can conveniently break your fixed deposits completely or partially. Fixed Deposits also give you the flexibility of choosing the tenure of the investment.

 Real Estate

The value of the real estate increases exponentially over the years. It is one of the best investment options; however, it demands a significant amount of upfront money. When people are in their 20’s, they usually have more money than they actually need. They are of the opinion that they are still too young to invest in real estate. Most real estate investors often wish that they had invested in real estate early in life.

The earlier you invest in it, the more you stand to gain. Investment in real estate  is a significant decision towards a financially secured future. Investing in Real estate in your 20s will help you build an early financial safety net.

Mutual Funds  

Mutual Funds’ Investments are one of the best investment options for people in their 20s. If you start investing in mutual funds in your 20s, then the greatest advantage you have is the number of years left to see your wealth fourfold. You can invest in mutual funds either through a Systematic Investment Plan (SIP) or a lump sum amount. Mutual funds let you invest in a variety of products as per your investment objectives and risk appetite . As compared to stocks, you need a smaller capital outlay to invest in mutual funds. Mutual funds help you with risk diversification. Mutual Funds are also highly liquid. Should you be faced with a financial crunch, you can sell it out in a hurry.


The demand for cryptocurrencies such as the Bitcoin,  Litecoin, and Ethereum is growing globally. Cryptocurrency is the future. They are extremely volatile. This is why they have tremendous profit potential. Hence even though you should invest in cryptocurrencies, you must take professional help in doing so. The Indian government is currently working on drafting the legal framework for facilitating the cryptocurrency transactions in the near future.

Post Office Savings Scheme

Post Office Savings Scheme is one of the most popular investment options in the country. They fetch good returns. Some of the Post Office Savings Schemes are Senior Citizen’s Savings Scheme (SCSS), Monthly Income Scheme (MIS), Public Provident Fund Account (PPF), Post Office Recurring Deposit Account (RD), Sukanya Samridhi Account (SSA), and National Savings Certificates (NSC). Post Office Savings Schemes are long-term investments and easy to invest in. Most of them come with tax rebates under section 80C of the Income Tax Act. The minimum investment amounts for Post Office Savings Scheme vary between Rs.20-Rs.1500.


Investment in stocks is one of the best ways to grow your wealth. If you invest in the stocks of stable companies, you will make commendable profits over time. Investment in different stocks will help you leverage the growth in different sectors of the economy. Some stocks also bring dividend income over and above the rise in the value of the stocks. You can make both short term and long term investments in the stock market. They are easy to buy and highly liquid investments.

If you start investing in your 20s, it will prove to be a financially prudent decision in the long run. You can choose to invest in any, as many or all the above investment options as per your requirement and financial needs.


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About the Author: Praveen Unnikrishnan

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