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Updated: Mar 22, 2021

“Successful investing is about managing risk, not avoiding it”, said Benjamin Graham

Before you invest, it’s important to be as informed as possible about securities and markets. Further, you must stay informed and monitor your portfolio. This report tells you what millennials need to know about markets and securities, and provides some basic suggestions on choosing an investment.


A financial investment is an asset that you put money into with the hope that it will grow or appreciate into a larger sum of money.

Investments are the core of all economic successes of the millennial. India has the highest millennial (18-35 years of age) population in the world. In India, millennials are 34% (at 440 million) of the country’s total population. With majority of them being in full time employment have been found to be investing more in comparison to students and others.

The millennials face enormous challenges in the present scenario, some purely attributed to their lifestyle requirements and other related to outside environment.

As stated above that prudent investments are the key to economic success; the major benefits of making investments can be summarized as under;

  1. Investing puts the money to work.

  2. Investing can help you reach your financial goals

  3. You can save money on taxes

  4. When you invest at a younger age, time is on your side

  5. Compounding is a “miracle of mathematics” and it lets you earn more than simple interest would.

  6. There are many investment vehicles. Each has its own unique characteristics.Choose wisely.




A cash bank deposit is the simplest, most easily understandable investment asset—and the safest. Not only does it give investors precise knowledge of the interest they’ll earn, but it also guarantees they’ll get their capital back. However, money is locked up for a period of time and there are potential early withdrawal penalties involved.


Slightly higher on the risk ladder, bonds are debt instruments in which investors effectively loan money to a company or agency (the issuer), in exchange for periodic interest payments, plus the return of the bond’s face amount, once the bond matures.


An equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and firms in anticipation of income from dividends and capital gains.

Fixed Deposits

Fixed deposit or FD is a type of term deposit that gives you a fixed rate of interest until maturity. By investing in FDs you can save and earn money at the same time. It also offers a higher rate of interest compared to a regular savings account.


Shares of stock let investors participate in the company’s success via increases in the stock’s price and through dividends. Shareholders have a claim on the company’s assets in the event of liquidation (that is, the company going bankrupt) but do not own the assets.


Annuities are often used as retirement planning investments. In the accumulation phase, you invest money into the annuity; once you reach the annuitization phase, you collect payments. Lottery winnings and personal injury lawsuit judgments are often awarded as annuities.

Mutual Funds

A mutual fund is a pooled investment vehicle managed by an investment manager, exposing investors to a basket of stocks, bonds or other investment vehicles, as described in a fund’s prospectus. Mutual funds can make distributions in the form of dividends, interest and capital gains.

Exchange Traded Funds (ETFs)

Exchange-traded funds (ETFs) have become quite popular since their introduction back in the mid-1990s. ETFs are similar to mutual funds, but they trade throughout the day, on a stock exchange, just like shares of stock. Unlike mutual funds, which are valued at the end of each trading day, ETF values fluctuate intra-day.


In nutshell, the Do’s and Don’ts , i.e, the investment mantras for millennials in my opinion are as under;


  1. Investing early to experience the power of compounding

  2. Periodical monitoring

  3. Invest for long term

  4. Diversify across various asset class

  5. Perform due diligence

  6. Balance your debt


  1. Speed investing

  2. Deceitful investing

  3. Emotional investing

  4. Get-rich-schemes

Final Word

The challenges faced by Millennials are unlike those experienced by older generations. In the coming decades of global economic uncertainty, preparing for the future is critical. Implementing the principles for financial security early in one’s working career and having the discipline to stay the course will enable Millennials to achieve financial independence and avoid the harsher effects of an expanding Information Age.


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