Five best retirement investment options for people in their 20s

Retirement investment: To experience the magic of compounding, people need to start their investment journey at an early age, the sooner, the better. The most common money mistake that individuals in their 20s make is delaying their investment decisions. It's good to make safe retirement plans in our 20s. Money experts say that to make retirement full of financial freedom, youth need to follow a systematic financial path. Instead of saving their money in bank accounts, they can invest it systematically to gain profits on the invested money.

Livemint spoke to money experts to know the various retirement investment options that people in their 20s can explore.

1) Mutual Funds

Mutual funds might be an effective retirement investing option for people in their twenties in India. Mutual funds provide diversification, expert management, and a variety of investment possibilities. “Consider investing in equities mutual funds, which aggregate investor cash to invest in a diverse range of stocks. Seek for funds with a proven track record and modest expense ratios. Equity mutual funds offer exposure to a diverse variety of Indian firms,” said Amit Gupta, MD, SAG Infotech.

2)Sovereign Gold Bonds

Gold has always been seen as an inflation hedge. Investing in gold may be part of a well-diversified retirement investment plan for Indians in their twenties. “Sovereign Gold Bonds are issued by the Indian government and are valued in kilos of gold. These bonds pay a set interest rate and provide tax advantages. SGBs can offer capital appreciation tied to gold prices,” said Ravi Singhal, CEO, ofGCL Broking.

3) REITs

In India, making investments in real estate may be a realistic choice for accumulating money as well as planning for retirement. “REITs are now a popular alternative for making investments in real estate despite owning actual buildings in India. REITs offer the option to engage in a diverse portfolio of income-generating real estate assets, and they often return rental income to investors as dividends,” said LC Mittal, Director, Motia Group.

4) Stocks
 

5) Fixed income securities

Fixed-income investments, like fixed deposits and bonds, play a unique role in diversification. It offers low volatility and steady income resulting in overall portfolio stability.

Sooraj Singh Gurjar, founder and MD, of Get Together Finance (GTF) said that there are several ways of investing money for the long term by buying different securities. Some of the securities that can be bought are

1)Equities of promising companies

2)Mutual funds with long-term returns

3)Dividend-paying stocks

4)Fixed income securities

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.