Only when you start investing early can you retire at the right time with a substantial fortune. Gone are the days when a singular financial instrument was the primary investment for most people. However, with a wealth of options like Systematic Investment Plans, Mutual Funds(MF), life insurance policies, and other instruments available today, individuals find themselves in a fix for the right mix.

After all, not every instrument is ideal for people of all ages. This article helps you discover the suitable financial instruments to invest in when you are in your 20s, 30s, and 40s.

Finance checklist for investors in their 20s

Here is what your ideal investment checklist should look like when you’re in your 20s:

MFs through Systematic Investment Plans

If you want to invest small but earn big, MFs are your go-to. However, for a person in their 20s who has just started earning, investing a lump sum in MFs might not be possible. But, that doesn’t mean you can’t leverage this high-return financial instrument. Invest in Mutual Funds through SIPs, which require a nominal monthly deposit of a few thousand rupees. 

Public Provident Fund (PPF)

Think of the PPF as a long-term investment – something you can utilize when you retire. You can deposit a maximum of Rs. 1.5 lakhs per annum and earn an interest return of 7.10% compounded annually. You can also avail of tax benefits on PPF under Section 80C of the ITA. The instrument allows partial withdrawals once the initial 5-year lock-in period is over.

Life Insurance

In your 20s, a life insurance policy comes at ridiculously low premiums with high coverage. The same benefit won’t apply to you as you grow older. So, invest in one at the right time, which is the 20s.

Additional Read: Five reasons why your 20s are the best time to start investing

Finance checklist for investors in their 30s

Here is what your ideal investment checklist should look like when you’re in your 30s:

Equity Funds

By the time you are in your 30s, you end up accumulating a considerable amount of wealth and will continue to do so for several more years if you keep working. Moreover, considering you’re still young, you can stomach calculated risk to multiply your funds manifold. This is why investing in equity funds like MFs, shares, stocks, and ELSS (Equity Linked Savings Scheme) makes sense. While it’s hard to calculate the exact return on shares and stocks, you can calculate the return on MFs by using an online mutual fund return calculator.

Sovereign Gold Bonds (SGBs), Digital Gold, and PPFs

Through SGBs, you can own more gold than your wearing capacity, that too, without paying making charges. What’s more, you earn an additional interest rate of 2.50% plus the appreciation value of actual gold. There is a lock-in period of 5 years, after which you can withdraw funds. However, if you let the bond stay till maturity, which is 8 years, you pay zero capital gains tax on it.

If investing in physical gold is not what you want, you can even invest in digital gold wherein the gold can be purchased online. It will then be securely stored in insured vaults by the seller on your behalf. You can request doorstep delivery of gold, invest an amount as low as Re. 1, use it as collateral, or exchange it for jewellery, coins, or bullions.

In addition to SGBs, continue investing in PPFs as they act as your long-term safe investment with low to medium return. 

Fixed deposits and debt funds

Invest in a deluge of low-risk and return funds, like fixed deposits, debt funds, and RBI savings bonds. These provide you with capital protection as well as liquidity in case of a financial emergency. Also, several people in their mid or late 30s take home loans, which is when they use FDs to make down payments.

Finance checklist for investors in their 40s

Here is what your ideal investment checklist should look like when you’re in your 40s:


Even in your 40s, you must keep a part of your earnings out for high return investments. Sure, the chunk for low risk and return investments would be bigger for this age bracket. But, MFs are a fairly safe investment depending on the type you invest in and promises high returns. An MF return calculator can help you calculate the earnings from a specific MF. Use it before applying.  

Additional Read: What kinds of investors should opt for mutual funds?  

FDs and other long-term savings instruments

By continuing your investments in fixed deposits, and dedicated retirements funds, you create a substantial corpus. Many people by their late 40s already start consolidating their earnings by investing them in safe savings instruments to retire early. 

Education plans for children

Your 40s are ideal for setting up an education fund for your kids. Quality higher education comes at a cost, but paying for it becomes easier if you set some money aside for this on time. Also, consider MFs here that are specially curated for helping you pay for your child’s higher education. You can calculate the return on these MFs with the help of an online mutual fund calculator.

Final thoughts

If you are looking for a financial mentor to help you create the right portfolio depending on your age, turn to Tata Capital Moneyfy. With us, you can achieve your financial goals hassle-free.

Whether you want to invest in mutual funds, SIPs, insurance, NPS or any other financial tool, check out to Tata Capital Moneyfy App.

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