Your 30s are an essential period of your adult life, where every major financial decision you make will go on to shape your and your family’...
Why do you need to consider investment plans in your 30s?
While savings are an essential aspect of financial well-being, the need for investments is just as important if not more. Planning for your financial future in your early adult years is key to leading a worry-free life later down the line, especially after you retire. Here are scenarios where going for investment options can be beneficial;
If you have long-term goals, such as buying a house or car, paying for your child’s higher education, etc., such investments can help achieve those objectives.
In our world of rising costs, building wealth can help you avoid the effects of inflation and market volatility.
After your retirement, it can help you provide a steady source of income so you can maintain your lifestyle and handle financial obligations properly.
It can help ensure the financial future of your loved ones and enjoy various income tax benefits.
List of best types of investment plans to consider in your 30s
There are various investment instruments available in the market, which can be a bit confusing to new investors. If you are in your 30s, here are some investment plans you can consider for yourself;
PPF
PPF stands for Public Provident Fund, which is a government-backed saving scheme that was created to promote an individual’s long-term financial security and stability in India. Due to it being backed by the government, it is quite safe and trustworthy. The investment tenure under the PPF scheme is 15 years (initial lock-in period) and can be extendable in 5-year blocks. PPF offers great returns on investments and an attractive rate of interest. The minimum deposit required to open a PPF account is INR 500 and you can enjoy tax benefits under Section 80C of the Income Tax Act of up to INR 1.5 lakhs each financial year.
NPS
NPS or National Pension Scheme is another government-backed investment scheme that you can consider in your 30s. It is a long-term investment plan focussed on retirement under PFRDA’s purview. It is open to employees in private, public and unorganised sectors, except the armed forces. It is ideal for individuals with a low-risk appetite. The minimum NPS contribution for account opening is INR 500 for tier I and INR 1000 for tier II accounts and you can enjoy tax benefits of up to INR 2 lakhs per financial year under Sections 80C and 80CCD.
ULIPs
Individuals in their 30s who are looking to gain the benefits of both a life insurance cover and an investment can consider ULIPs. It stands for Unit Linked Insurance Plans, where the premium you pay goes towards meeting two main financial goals, investment and building a life cover. It is one of the best types of investment plans for long-term investors with varying risk appetites, as it lets you choose from a variety of funds (higher-risk equity funds, lower-risk debt funds or a balance of both) along with the ability to fund switching.
FDs
If you are looking for low-risk investment plans with guaranteed returns on your investment, consider Fixed Deposits (FDs). Your 30s are a great time to start an FD, where you will need to deposit a lump sum amount for a specified period. In return, you will earn an interest on it at a fixed rate throughout the tenure, regardless of market fluctuations. At maturity, you can withdraw the invested amount alongside the earned interest.
Insurance
If you are an employee, chances are you already have health insurance that covers yourself and your dependents under your employer. Having good health insurance is essential and if you don’t have one even in your 30s, make sure to invest in one as fast as possible. Life is very unpredictable and medical emergencies can rise out of the blue. In our present world of rising healthcare costs, tackling such expenses from your pocket can be very difficult. This is where health insurance comes in handy, covering crucial medical expenses and letting you access medical care at affordable costs. Similarly, make sure to invest in life insurance plans to secure your family financially in the event of your unfortunate demise.
Conclusion:
These are some of the most essential and popular types of investment plans that everyone should consider. If you are in your 30s and are new to investing, make sure to give the options mentioned on this page a try. From high-risk, high-reward investment plans to long-term schemes with guaranteed benefits, there are a lot of choices for you to pick from.
