Outlook Money
Making track of investments early is more important for Generation Z than making wealth. This involves securing financial stability and has challenges to it.
Starting investing early, allows one's money more time for acquiring compound interest and getting better returns on investments. The more money invested to better returns. Therefore, starting early is useful.
For one to choose an asset class from various investment options, it is very important for one to make clear financial goals.
1. Stocks (Equities)
For one to invest in equities, it offers the highest returns. However, risk is involved here, so Gen Z who wants to invest in equities, can do so by understanding the markets.
Mutual funds gather money from multiple investors, which is then invested in a range of diversified assets. Among the various types of mutual funds, Systematic Investment Plans (SIPs) have become particularly popular with new investors entering the market.
Fixed deposits (FDs) are a safe choice for conservative investors, offering guaranteed returns, though at lower interest rates than stocks or mutual funds. They are ideal for emergency funds or medium-term savings.