There are various investment tools that you can choose from to fund your home purchase. Here's a look at key investment options preferred by young Indians
Proper and thorough financial planning is key to buying a home. If your finances are in place, then purchasing a home would be a smooth process. Today, the millennials are well-aware of this fact and thus have already set the course for their future home purchase.
Times Property spoke to a few of these young guns to understand which instruments they prefer for their down payment. Mutual funds and gold “As I am not the sole earning member of my family, I can afford to invest a large part of my salary. I prefer investing in mutual funds through systematic investment plans (SIPs) as they give market-linked returns and the portfolios are managed by experienced and qualified fund managers. The fact that mutual funds give better returns than Fixed Deposits (FDs) is an added advantage. I also invest a part of my salary in physical gold. My goal is to not keep money ideal in my savings account. So, if I end up with some extra savings, I either add them into my mutual fund portfolio as a lumpsum investment or buy gold. I also started learning about the stock market during the pandemic. I now spend around an hour every day to understand the market so that I can trade as well.” — Tejaswini Patil (24), Financial analyst, Mumbai
Counting on compounding and crypto “I am still young, and have a few years until I buy my house and start a family. Thus, I believe that I should make the most of compounding. The second age-related advantage I have is the fact that I have a larger risk appetite. I thus invest 60 per cent of my investable amount in index mutual funds pegged to Nifty and Sensex. 20 per cent of the amount goes into the individual stocks of companies with strong fundamentals. These stocks are from the FMCG, banking, and real estate sector because I believe these sectors have the potential to grow. Since I come from an IT background, I see promise in Web3 with high potential for DeFi, metaverse, and smart contracts. I thus invest the remaining 20 per cent in reliable cryptocurrencies.” — Abhishek Gangan (24), Software developer, Mumbai
Trust traditional instruments “This might sound a bit surprising but I am inclined towards the traditional ways of investments, such as FDs and gold. I invest in gold whenever I can and have also started FDs for a tenure of 10 years. They are low risk and the amount is assured. It gives me a clear idea about how much money I currently have and will have at maturity, which helps me plan my purchase with precision. With the combined returns from my FDs and gold investments, I am sure I’ll be able to save enough corpus to buy my house.” — Sagar Devsani (27), Graphic designer, Telangana
A bit of everything for diversification “I have been working for close to a year now and have just started my investment journey. I believe that diversification is the key and I ensure that I have a balanced portfolio. I have started investing a bit in gold, and the stock market. I am planning to start my mutual fund SIPs and FDs soon, so that I balance out my risks. I am also keen on buying an insurance policy so that it acts as my investment as well as risk cover.” — Shreya Gupta (23), Media professional, Uttar Pradesh
Source - Times Property
