The way that millennials invest their money is very different from the way their parents did. Millennials tend to have a much larger risk appetite, and they look for innovative investment products and strategies that can offer them high returns. However, it's always wise to create a diversified risk pool for your investments, with a healthy mix of riskier investments like direct equity and traditional plans like fixed deposits with steady and assured returns.

Here are 10 options you can consider as a millennial while creating your investment strategy:

  1. Guaranteed Plans:
    • Irrespective of any major change in local, state, central government; global pandemics; or any other event, you are rest assured to get guaranteed returns
    • Inflation-beating returns
    • Not market-linked but guaranteed returns!
    • Tax-free returns between 8% and 9% per annum (presuming 30% tax bracket)
    • Triple tax exemption benefit – premium-payment, accumulation, and withdrawal phase exemptions
    • Your life is covered while you are invested
    • Guaranteed plans from companies like Future Generali India Life Insurance give additional bonuses between 4% and 8% per annum, subject to policy terms and conditions.
  2. Unit-Linked Insurance Plan (ULIP):
    • Investing in a ULIP, an insurance product, comes with the triple benefit – life cover, investment, and tax benefit.
    • You can simultaneously protect yourself or your family against unpredictable events and make returns on the equity market.
    • ULIPs do not come with a burden of paying 10% LTCG tax on gains exceeding Rs 1 lakh, whether the investment is short term or long term.
    • ULIPs allow fund switching without taxation or limitations.
    • ULIPs offer the flexibility to choose be like low-, medium-, or high-risk funds
    • The fund management charges of other products are of up to 2.25%, whereas ULIPs cannot charge more than 1.35% as fund management charges.
  3. Public Provident Fund:
    • One of the most traditional investment avenues, PPF nevertheless remains a great investment option for millennials.
    • While you may choose to extend your risk appetite through other avenues, PPF is always a good idea because of low risk and steady, assured returns on investment.
    • Contributions to PPF are tax deductible under Section 80C of the Income Tax Act.
  4. National Savings Certificate:
    • Another government-backed, low-risk investment option is the NSC.
    • With steady, fixed returns, you can begin with investing as little as Rs 100.
  5. Direct Equity:
    • If you’re a bit more of an experienced investor and have a good risk appetite, direct equity investment could be the way to go for you.
    • It is extremely susceptible to volatilities of the market, and therefore can be very high-risk investment.
    • But if you understand the markets well and know how to navigate them, then it could bring you higher returns than any other investment avenue.
  6. Your Own Business:
    • If you've always dreamed of starting your own venture, and have an idea that you think can really take off, you should consider investing in yourself!
    • Save up for a few years by working a corporate job and create a healthy corpus.
    • When the time comes to launch your business, you may not need to depend heavily on banks or venture capital firms to fund you, giving you the freedom to experiment with your idea.
  7. Life Insurance Products:
    • Life Insurance products like health insurance can help you fight any critical illness with top-quality treatment without worrying about finance.
    • Life insurance products like term insurance are must-haves for any millennial as in your absences your family will be financial secured.
    • Insurance products also come with great tax benefits, as premiums paid on insurance policies are tax deductible under Section 80C of the Income Tax Act.


To conclude, don’t waste time procrastinating, start investing now so that your investments start compounding over a period of time. Also, follow the idea of diversification of funds. To speak to our financial advisor, click here.