Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

What are the Best Investment Options for Young Adults?

As a young adult, it is important to start investing early to secure a financially stable future. There are several investment options available, each with its own benefits and risks.

  • Jan 01, 1970

As a young adult, you start saving; you need to think about maximizing your savings. And the best way to do it is to invest in the best investment options. You must be cautious of wrong moves and understand your financial needs, both short-term and long-term.

Key takeaways

  • ULIPs are a great pick if you are looking for long-term investment options for young adults.
  • Investing at a young age can also help you develop good financial habits that will benefit you throughout your life.
  • Mutual funds are another investment option that offers diversification by pooling money from multiple investors to invest in a portfolio of stocks, bonds, or other assets.

As an individual, when you reach your mid-twenties and are now stepping into the professional world and a systematic 9-5 routine, you start taking on multiple responsibilities. This is the time when you start becoming independent and self-reliant. However, as you dwell on a more serious life, you realize the importance of dealing with finance and investment.

Therefore, you start taking your expenses and bills more seriously and cutting on them wherever possible. Unfortunately, however, most young adults do not get paid handsomely enough to live a lavish life in the starting years. Thus, all the seriousness leads to worry, increasing the importance of saving and creating wealth.

Once you understand your financial needs, you smartly decide which are the best investment options for young adults in India.

In this article, while sharing a list of the best investment options for youngsters, we will also briefly describe why the below-mentioned financial schemes are the best investment options for young adults in India.

Five Best Investment Options for Young Adults in India

Investing your money wisely is one of the smartest decisions you can make, especially when you are young and have time on your side. But with so many investment options available, it can be overwhelming to know where to start. That is why we have put together a comprehensive guide to the five best investment options for young adults in India.

The Indian Post Office Saving Schemes (Post Office Savings Scheme)

Trust is a critical factor when you are planning to invest. And as a young adult, the top priority is to have secured investment. Thus, the Post Office Savings Scheme is a trusted organization to park your money. Moreover, as the organization is completely government-backed, they offer absolute capital protection on various schemes and a competitive interest rate.

PPF (Public Provident Fund)

PPF is a long-term saving scheme devised by the central government of India. Apart from offering a high-interest rate, they are a great way to make tax-free savings. At maturity, the capital, Interest, and proceeds are all tax-free. This is why the PPF scheme is called an EEE benefit scheme. You can invest between ₹500 to ₹1.5 lakhs in one year. However, it is advised to invest the maximum amount at the beginning of the year to reap the maximum benefit of the PPF scheme.

RD (Recurring Deposit Account)

It is important to possess some emergency funds in your hands for immediate needs as a young adult. Recurring Deposits ensure that you have such funds for any emergency. Having an RD of 6 months or 1 year makes sure that you have disposable liquidity readily available and within reach. The thing that makes RDs one of the best investment options for young adults in India is that they offer a good interest rate of 6% to 7%, depending on the banks.

ULIPs (Unit-Linked Insurance Plans)

ULIPs are a great pick if you are looking for long-term investment options for young adults. Being an investment plan that also offers insurance coverage, Unit-linked insurance plans are those flexible modes of investment that allow young adults to invest as per their financial needs and risk tolerance capacity. From equity funds to debt funds or hybrid funds that are a combination of both, ULIPs help investors to earn a good return while offering protection against uncertainties through life insurance cover.

SIPs (Systematic Investment Plans)

The best part of SIPs is that they offer you a wide range of investment options and the ability to grow in sync with the market. While equity funds are popularly known for their high return potential but at the same time, many believe that it requires a large spare amount to be invested. However, SIPs are made for investing the smallest possible amount to larger sums according to your convenience.

Why Should You Start Investing When You are Young?

Investing is often thought of as something that older, more established individuals do. However, investing at a young age can have numerous benefits that can positively impact your financial future. Let us dive in and understand the reasons why you should start investing when you are young.

Compounding Interest

One of the most significant advantages of starting to invest at a young age is the power of compounding interest. Compound interest is the interest earned on both the principal and accumulated interest of your investment. The earlier you start investing, the longer your investments have to compound, resulting in significant long-term growth. Even a small amount of money invested regularly can grow significantly over time.

Time is on Your Side

When you start investing at a young age, you have something that older investors do not have: time. With more time, you can afford to take risks and ride out any market fluctuations. As you grow older, you may need to adjust your investment strategy to be more conservative as you approach retirement age. Starting early gives you the luxury of time to explore different types of investments and take more significant risks that can potentially lead to higher returns.

Develop Good Financial Habits

Investing at a young age can also help you develop good financial habits that will benefit you throughout your life. By starting to invest early, you will learn the importance of saving and budgeting. You will also develop discipline, patience, and long-term thinking, which will serve you well in all aspects of your financial life.

Higher Earning Potential

Starting to invest early can lead to higher earning potential over time. As your investments grow, you can reinvest your earnings to generate even more significant returns. Additionally, the money you earn from your investments can be used to start new ventures or invest in other opportunities that can increase your overall wealth.

Achieving Long-Term Goals

Early investment can assist you in achieving long-term financial objectives like home ownership, business startup, or early retirement. By starting early and consistently investing over time, you can accumulate wealth that can be used to achieve your dreams and aspirations. Investing can provide a solid foundation for your financial future, ensuring that you have the resources you need to accomplish your goals.

What are the Easiest Investments for Young People?

Investing is an essential tool for building wealth and securing a financially stable future. As a young person, it is crucial to start investing early to take advantage of compounding interest and allow time to work in your favor. However, with so many investment options available, it can be overwhelming to know where to begin.

Exchange-Traded Funds (ETFs)

Exchange-Traded Funds (ETFs) are investment funds that trade like stocks on an exchange. They offer diversification by investing in a basket of stocks or bonds, reducing the risk of investing in a single company. ETFs also typically have low fees and are easy to buy and sell. For young people who may not have the time or expertise to manage a portfolio of individual stocks or bonds, ETFs can be a great option.

Mutual Funds

Mutual funds are another investment option that offers diversification by pooling money from multiple investors to invest in a portfolio of stocks, bonds, or other assets. Mutual funds are managed by professional fund managers, making it an easy and convenient way to invest without needing to research individual companies or assets. Some mutual funds have higher fees than ETFs, so it is essential to compare fees and understand what you are paying for.

Wrapping Up

This list of best investment options is not exhaustive; however, the schemes mentioned above are amongst the most commonly opted plans for you as young adults. Remember, a prudently planned investment can not only help you use your hard-earned money wisely but also enable you to create more wealth for financial stability.

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Can ULIP Policy be Transferred?

Asset Allocations in ULIP - Know the Top Benefits

4 Benefits of ULIP Fund-Switching Feature

What are the Best Investment Options for Beginners or Amateur Investors in India?

Why are ULIPs One of the Best Tax Saving Instruments?

यूलिप के फायदे और नुकसान क्या हैं?

How to Plan Savings from Salary?

How to Use Recurring Investment Strategies to Build Wealth?

Importance of Portfolio Management

What is Direct Investment and its Types?

Important Questions You Must Ask Yourself When Buying a ULIP Plan

A Step-by-Step Guide: How To Make An Investment Plan?

How to Cancel ULIP Policy?

Is This The Right Time To Invest In ULIP? Why or Why Not?

8 Charges in ULIP That You Must Know

What Is Financial Planning?

How to Plan Your Child's Education - A Step-by-Step Guide

Best Investment Options to Cover Your Child's Education

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

How To Diversify Portfolio In 2023?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

What is Compound Interest, And How Do I Calculate it?

What are the Maturity Benefits in a ULIP Plan: Fund Value Sum Assured or Only Fund Value?

ULIPs Investment – A Boon or Bane?

How to Make Your Financial Portfolio?

What is a Savings Plan and What are is Benefits?

How Do One-Time Investment Plans Work?

What is the Importance of Saving Money?

What are Index Funds and How Do They Work

How to Fulfil Your Financial Goals in the Next 10 Years?

Investment Options for NRIs in India

ULIP Capital Gain Tax: Check Tax Norms for Capital Gain on ULIPs

What are Some of the Safest Investment Options in India?

ULIP Plan as a Gift

What is ULIP Renewal?

Which is a Better Investment - Mutual Funds Or ULIP?

Things to Know Before Buying an Endowment Plan

Can ULIP Help in Achieving Short-Term Financial Goals?

Why Are ULIPs Called Flexible Investments?

What are the Advantages and Disadvantages of ULIP?

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

Benefits of ULIP as a Child Insurance Plan

How to Manage Your Portfolio Like a Professional?

How to Start Saving Money in 10 Simple Ways?

How to Manage Inheritance Money?

What is SIP Calculator, And How Does it Work?

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

What is Equity Mutual Funds: Meaning, Types & Benefits

Learn About Safe Investments with High Returns in India

How Much Wealth Can You Create from ULIP in 10 years?

Successful Financial Planning for Urban Women

Corporate Bonds: Meaning, Types & Benefits

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

ULIPs: Suitable for all

How Does an Endowment Plan Work?

Customising investments to manage your wealth

Is the ULIP Policy Surrender Value Taxable?

Creating a second source of income with life insurance

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

Savings Plan for Grandchildren

Everything You Must Know About ULIP Riders

Why Should You Invest in Term Insurance And ULIP?

वित्तीय संपत्तियां और उनके प्रकार

Four Financial Lessons from The Vedas on Living Life to The Fullest

Planning Financial Goals and Objectives of Financial Planning

Top 5 Investment Options in 2022 for Healthy Returns

Investments Options to Buy a house in India

Safe Investment Options with High Returns for FY 2018-19

Difference Between Guaranteed Savings Plan and ULIP

How to Plan your Investment to Achieve Periodic Financial Goals?

ULIP Benefits You Can Avail from Early Investing

Building wealth through regular investing

What is the Time Value of Money (TVM)?

Why Should You Build an Emergency Fund?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Here's Why it's a Good Time to Explore ULIPs as an Investment

How To Invest Money In ULIP?

How to Calculate Your ULIP Returns?

Best Investment Options in India in 2022

Got a Salary Hike? Here’s How to Plan your investment further

6 Important Tips to Maximize Your Gains with ULIP Investments

Best One-Time Investment Plans in India

How Can ELSS Funds Help You Save Tax & Create Wealth?

What are the Best Investment Options For Females?

Why ULIP is Better Investment for Long-Term Wealth Creation?

Difference Between Passive and Active Investing

Best Investment Plans for Children - Secure Your Child's Future

Which are the Best ULIP Plans in India for Children?

Why Do You Need A ULIP Plan - All You Need To Know

ULIP vs FD - Which is Better and Why?

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

What is a Child Money Back Plan, and How Does it Work?

What are loyalty additions, and how do they work in a ULIP?

What are Tax-Deferred Savings Plans?

Which is Better – FD, Mutual Fund, SIP, or ULIP?

Different Types of Endowment Plans

How Is ULIP Different from Other Life Insurance Plans? Where Can I Invest - ELSS, ULIP, or PPF?

What is Money Management? Definition & Example

ULIP as an Investment for Your Child

How to Choose the Best ULIP Plans to Invest in 2022?

Are Gains from ULIP Sale Taxable?

What is ULIP Plan, and How Does it Work?

लॉयल्टी एडिशन क्या हैं, और वह यूलिप में कैसे काम करते हैं?

How To Track ULIP Performance?

Does Rupee Cost Averaging Work In Unit-Linked Insurance Plans?

Top 5 Principles That Need to be Followed for Wealth Creation

What are the Best Short-Term Investment Plans with High Returns?

Do You Know the Difference Between Savings and Investment?

Top 10 Investment Strategies to Create Wealth

Best Guaranteed Returns Investment Options to Meet your Financial Goals

यूलिप प्लान में परिपक्वता लाभ क्या हैं: फंड वैल्यू सम एश्योर्ड या ओनली फंड वैल्यू?

The lesser-known facts about ULIP policy that customers should be aware of?

Receiving regular payouts at various stages of life

8 Important Tips to Maximize Gains with ULIP Investments

How is the Compound Annual Growth Rate (CAGR) Calculated in ULIP?

How to Increase Net Worth Along with Family Protection

Factors Affecting Stock Markets

What are Mutual Funds?

Learn About Safe Investments with High Returns in India

यूलिप के फायदे (Benefits of ULIP in Hindi)

The Importance of Starting Early: Securing Your Child's Future with a Child Education Plan

Early Investing and the Power of Compounding

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

What are the Best Investment Options for Students in India?

Long Term Savings Plan - Best Savings Investment Plans in India

Top 10 Investment Plans Available in India

What is a Credit Score and How Can Insurance Help You Improve it?

What is ULIP and Its Benefits?

What's Better for Your Child's Education? Child Plans or Mutual Funds?

What is NAV in ULIP, and How is it calculated?

Why Should I Invest in ULIP?

Are Investment Returns Guaranteed in a ULIP?

Are Money Back Policies Helpful? A Complete Guide

Planning for Your Child's Higher Education? Explore These Investment Options

What are Financial Assets & their types?

Difference Between ULIP and Endowment Plan?

Short Term and Long Term ULIP Plans for Wealth Creation

Why Should Parents Invest in Endowment Plan?

Rate of Interest on Different Investment Plans in India

ULIP NAV Meaning & How is the Return Calculated in ULIP

Endowment Plan vs Fixed Deposit?