Instruments that Millennials should Invest In!

Invest In

   People work hard to earn money but saving money in right form is a skill. Not many people have that skill to save money for the future which is adequate for them. People tend to save money in Saving Bank Account which give them very less interest which they think they have earned. But actual earning is what you earn above the rate of Inflation. For e.g. if rate of inflation is 5% and you earn 6% interest the real earning will be only 1%. Time value of Money plays an important factor as Re 1 earned today is not same as Re 1 earned tomorrow.

Here are the instruments which can help you to grow your wealth –

·Mutual Funds –

  1. A mutual fund is a company which pools money from various investors all around and invest their money in Equity, Debt, Securities, Bonds, etc.
  2. It is the most popular choice among various investor as you can diversify your funds to various sectors. Mutual fund provides many schemes to the investor such as Equity Scheme, Debt Scheme, Hybrid Scheme, Balance Funds, etc.
  3. Also, we get an option to for Systematic Investment Plan (SIP) where in you set a date each month and can invest to that fund directly.


·Public Provident Fund (PPF) –

  1. Public Provident Fund is a scheme popular among young investor who wants to earn high and stable but there is a lock in period of 15 Years.
  2. An investor can start the PPF account by minimum investment of Rs 500 p.a. to maximum of Rs 1.5 Lakhs p.a.
  3. Also, Deduction under Section 80C is available for PPF holders, which can help them to save Tax.


·Government Securities –

  1. Government Securities (G-Sec) is an instrument issued by the Central Government or State Government which is tradable in market. G-Sec is available for Short term like Treasury Bills or for Long term like Government Bonds.
  2. G-Sec is very much secured as there are no chances of default in payment, that is why they are called as risk-free instruments.


·Life Insurance Scheme –

  1. Life Insurance is a contract between the Life Insurance company and Policy Holder with Insurance coverage over the life of the policy holder with timely Premium payment.
  2. Life Insurance give the death benefit to the person named as beneficiary in the Policy upon policy holders death.
  3. Tax Exemption under Section 10(10D) is available upon maturity of the Policy with certain conditions.
  4. Premium paid for Life Insurance Policy is also allowed as Deduction under Section 80C.

·Medical Insurance –

  1. In today’s time healthcare cost has become very costly. Often people don’t take Medical Insurance and have to pay from lifetime savings.
  2. Medical Insurance will provide safety for future medical expenses for payment of premium over the life of the policy.
  3. Deduction under Section 80D is available up to Rs 25,000/- for Self, Spouse, Children and Parents. An additional Rs 25,000/- is available if parents are above 60 Years of age.

These are the various instrument available for Millennials to secure the future in terms of time value of money and can have a good savings when they retire.



-Akash Girish Doshi

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