Rome was not built in a day, we all know about this. In the same way, all good things take time. Investing is also a discipline and starting early allows you to make most of your investments. Most of us wish to amass a fortune and become a millionaire. So, again the tip is starting early. If you start while you’re young, you’ll have a far better chance to become affluent and let your fortune compound as you become older. For many adults in their 20s, retiring early in their career is a dream. One has to make a retirement plan by managing their expenses, current and future.
Here are some investment strategies shared by market experts on how to invest while you are in your 20s and be really wealthy in your 30s.
1) Commercial real estate
Ankit Aggarwal, MD, Devika Group says as someone in your 20s looking to get wealthy in your 30s commercial real estate can be your ideal choice. “Commercial assets such as offices, retail, warehouses, and so on remain safe bets because they can generate recurring rental income. Commercial properties produce higher returns. Grade-A office space can easily provide an average yield of 6-7%,” said Ankit Aggarwal.
Retail units can provide yields of 8-9% and are a safe investment option. Therefore investment in commercial real estate can be your go-to choice for investing early, he added.
2) SIPs, or systematic investment plans
SIPs, or systematic investment plans, are the most effective way to see your investment double or triple in a short period of time. Amit Gupta, MD, SAG Infotech says that it is such an investment that it should begin at the age of 25 when a person begins earning. SIPs, when started early and maintained over time, can result in significant savings that would otherwise be difficult to achieve manually.
3) Public Provident Fund or PPF
Another viable option is PPF. PPF account is a Public Provident Fund account that pays you fixed interest over time with little risk and tax advantages. Furthermore, you receive full tax benefits on your PPF account, which means that your investment, interest, and lump sum received at maturity are all tax-free.
4) Crypto assets
Crypto assets are a promising investment for the future. Crypto has been on investors’ minds ever since Bitcoin started to skyrocket in value. Crypto investments can be risky.
Manoj Dalmia, Founder and Director-Proficient Equities Limited explains some basic principles which one can use and create a fortune while being invested in crypto.
Buy At Dips: If you believe cryptocurrencies are the future then you can start buying some visible coins that have market recognition. These can add huge value if accumulated at a low price.
Buy Cryptos with a purpose: Do not invest in purposeless coins. Invest in those who support a cause and can be sustainable in the future. Read the whitepapers on any cryptos you plan to invest, their utility, and how they are better than competitors. This is the best way to filter out the long-term winners from the losers. If you had invested ₹500 every Month in Bitcoin for 5 years, you'd get ₹70,967. As your current investment value by investing ₹30,000 which is 135% absolute returns which is approximately 18% CAGR.
5) Stock markets
The stock market is the best investment instrument, which can beat inflation with a good margin, and has a history of making people wealthy, who are consistent in their investments. Ravi Singhal, CEO, GCL says that if we look at the stock market benchmark Nifty50, it has given more than 14% CAGR in the last 20 years.
He further added that there are multiple ways to invest in the share market and get the maximum yield, like direct equity purchase, ETFs and Mutual Funds.
