Millennials as a group is those who were born in the 80s and first half of the 90s, and are now at the cusp of entering a new life stage, where income growth coincides with growth in the family, as parents become older, bringing in additional responsibilities and expenses. The realisation dawns on them suddenly that one has to plan for financial goals not just in the near future — the next phone or the big post-pandemic road trip — but also for medium and long term — financial security for your spouse, building/buying your dream house, planning for kids’ education, or building a corpus to take the leap into your second career or venture a few years down the line.
In the early part of the financial year, it’s worth assessing which investments are likely to give you best impact over the long term. There is no standard answer here, as the investment options most suitablefor you, depends on your specific goals, risk appetite and preferences.
Some guidelines to keep in mind:
Hence, check these 5 boxes first:
With these guidelines in mind, one can evaluate the options for each category of long term investments. You could consider unit-linked plans, or diversified mutual funds for taking exposure to equity for long term. For safer, fixed income returns, you could consider guaranteed return insurance plans or specific government schemes/small savings schemes which also provide tax advantages.
While millennial is a broad category, make sure you understand your life stage and also your specific requirements before you choose the product that’s right for you. Whichever plan you choose, remember it’s for the long term. Staying committed to your investment goal and disciplined regular investing is most important in the long run.
The writer is Chief Digital and Strategy Officer at Canara HSBC OBC Life Insurance
DISCLAIMER: Views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.