Warren Buffet began investing at 11 years old, yet he still believes he started too late. The fundamental reason for this is that things get. We have all heard about compounding interest in school, but it works like magic in investment. You accrue interest on the principal and the good with compound interest.

This means that the longer your investment is invested, the longer it has to compound. Even so, investing in your twenties is a good start because you don't have much debt, have fewer responsibilities, have a long time to invest, and are more prepared to take risks.

Top 10 Investment Strategies For Young People

Better possibilities for investing

Mutual Funds

Mutual Funds aggregate monies from diverse investors to form a pool of assets. This money is then used to buy stocks, bonds, financial instruments, and other assets. Because of this, it is ideal for first-time investors.

       Professionally Managed: A mutual fund's assets are divided and managed by the fund's employees. The investment is in capable, skilled, and experienced hands.

       Diversity: It allows you to invest in a wide range of companies, reducing your reliance on the performance of any single company.

       A wide range of options: You can engage in large-cap funds, mid-cap funds, technology funds, value discovery funds, and so on. So, if you're bullish on a specific industry, such as EVs (electric cars), you can buy mutual funds that make investments in that area.

Systematic Investment Plans (SIPs)

Mutual Funds provide SIPs as a sort of investing. It allows investors to invest a specified amount in a mutual fund regularly, such as once a month or every three months, rather than all at once. The installment payment is similar to a recurring deposit and might be as low as INR 500 per month.


Many young single people believe that life insurance is a waste of money. However, I believe it is also where people take out educational loans, loans for their small enterprises, loans to purchase a home, and other obligations. Even if something bad occurs to you, your debt will remain.

It will be difficult for your co-borrower, which is something you do not want. Your life insurance will cover all these expenses, so your loved ones will not have to worry about your debt. Insurance is a strategy to protect yourself from potential risks, and when you're younger, insurance firms offer you low rates.

Index mutual funds

Index funds follow a benchmark index, such as the Nifty50 or the BSE Sensex. When you support an index mutual fund, your cash is utilized to purchase shares in all the firms in that index. This results in a more diverse portfolio than if you had purchased individual equities.

Index funds are less risky than individual equities since they instantly diversify and attempt to hold the same stocks as the index they monitor. Several market indices have existed for quite some time. Here are several compelling reasons to invest in index funds.

       These funds have low costs since they are handled passively.

       They are opposed.

       They must replicate the index. Therefore there is no space for human bias or intuition.

       Simpler to deal with


When you buy stocks, you're buying a portion of the company. If you wish to invest in stocks again for the long term, you must be creative and conduct thorough research. Purchasing shares in a firm is not dangerous if you are well-versed in its operations.

It would allow you to buy stocks in your twenties because you could start investing in a tiny company. As the firm's value rises, so will the price of your shares. So, if you trust a specific industry or firm, you should watch how they do and invest at the appropriate time. You will grow with the company.


It is a digital asset that can be used for payment without the assistance of a financial system or monetary authority. Cryptocurrencies are created using encryption, making it safe for users to buy, sell, and exchange them.

 It features a decentralized structure, meaning power is not concentrated in one location.

       Because some cryptocurrencies, such as Bitcoin, are scarce, they are regarded as valuable assets, similar to gold. It's a secure system.

       There is no government in charge.

       The likelihood of making a mistake is low.

Non-Fungible Tokens (NFTs)

NFTs can represent any digital asset, such as real estate, films, or art jpegs. These files may be bought, managed, sold, and traded quickly and simply by converting them into "tokens" and safeguarding them on a blockchain. This also reduces fraud.

NFTs are used to tokenize physical items like works of art so that only one individual may own them. Art will not be copied as a result, and the artist will retain complete ownership. As a result, art becomes more valuable and difficult to find. This profession has a lot of space for growth and change; if you enjoy art, NFT is something you should look into.

Commodities Trading

Commodities can help investors diversify their portfolios beyond standard stocks and bonds. During market turbulence, some investors flock to commodities since commodity prices frequently move in the reverse way of stock prices. 

       To diversify your portfolio. Because commodities and stocks go in different directions, investing in things is a wonderful strategy to diversify your portfolio.

       It is a wise investment.

       With commodity market brokers, the trading margin is lower.

       Keep an eye on the inflation rate.

Debt Funds

Debt funds are professionally managed funds that generate income by lending to governments and corporations. The loan's length and the borrower's type impact the total risk of a Debt Fund.

The primary purpose for investing in debt funds is to benefit from continuous interest charges and capital growth. The persons who create debt instruments decide on the interest rate and the maturity date. As a result, they are recognized as fixed-income securities.

       They can spend for as little as one day or as much as three years.

       You will receive tax breaks.

       Better profits can be obtained with less risk than just a savings account.

Emergency Funds

Long-term investing and rescuing are fantastic, but you should always keep a safety fund. If something goes wrong, this fund will assist you. It is now preferable to deposit this money rather than hold it in cash. A savings or checking account will assist you in three ways:

       Your funds are secure.

       They'll make some money off of it.

       You can summon them whenever you need them.


The above investing options assists investors in developing the habit of putting money aside regularly. It's similar to an investment plan that improves with time.

You aren't required to worry about a market with SIP because you regularly spend money.

When you start SIPs, you don't have to worry about market timing because your money will appreciate through all market ups and downs. SIP information can be found on MoneyControl, ET Money, Tickertape, and others.