What are the Best Investment Opportunities For Young Adults

The journey of building wealth seems intimidating; especially at a young age. But starting early is the right thing to do. Although your ability towards investments will come with a limitation, the benefits that could be enjoyed over a period of time are glorious.

Most likely people start thinking of investments only in their advanced years. And that’s because, people in their 20s do not wish to spend a significant chunk of their earnings on something that would derive a return in their future. But hey, that’s the right approach.

Start early, build a stable investment portfolio, create an additional source of passive income and look forward to having a bright future.

Before we explore some of the best investment opportunities, let’s throw some light on why one must invest early.

Advantages of Investing Early:

• Enjoy long-term success
• Learn from mistakes and get a chance to correct them
• Riding out market volatility
• Enjoying compound interest
• Retire with a comfortable financial backup
• Enhanced capacity of risk appetite
• Lead a disciplined life

What are the Best Investment Opportunities for Young Adults?

• Mutual Funds

Investing in mutual funds is a good and safe option for those individuals who lack skills of management and planning. Mutual funds are a pool of securities that offer widely diversified holdings at a low cost. These funds are a go-to option for young adults as they are managed and supervised completely by a well-versed fund manager. A mutual fund investment offers diversification of an investment portfolio while striking a healthy balance between risks and returns.

In the UAE, mutual funds are an attractive option.

• National Bonds

National bonds are led by the Dubai bonds company and an initiation by the Dubai government with 50% ownership. The main objective of this investment option is to offer low-risk savings and provide the required security in the UAE. The risk-free alternative is designed to derive fixed income gains for young adults making it their most preferred option. The saving bond also offers safety, liquidity and better interest rates than banks.

One can have a minimum investment of AED 100 and then have additional top-ups when required. Also, this space is less volatile and a safe investment tool.

• Stocks

Though a stock investment comes with a risk appetite, one can surely earn big bucks if approached calculatedly along with thorough research.

Undeniably, the stock market has turned out to be the smartest way of investing money. Even if you don’t have a solid understanding of a company or a specific sector’s performance, you can wisely invest by taking expert help. It is critical to invest by hiring a professional whether you are a young investor or not. And that’s because, lack of understanding can cause a huge loss in this volatile market.

Dubai primarily has two stock exchanges. The Dubai Financial Market is the first stock exchange to have its own Initial Public Offerings back in 2006. The NASDAQ Dubai is another stock exchange that enlists international and domestic companies and is regulated by the Dubai Financial Services Authority.

• Real Estate

Inevitably, Dubai offers the best in class homes and super luxurious infrastructure. With the new law passed by the government, people across the world can now own property in the UAE. Most definitely, the place is an ultimate haven for real estate investment. And therefore, it is also considered as one the safest investment avenues for young adults. Apparently, one can hire some financial advisors to help suit their needs.

Investors can enjoy usufruct rights or leasehold rights for a property up to 99 years. This can hence prove to be one of the best passive income investments. Real estate is a great way to generate fixed and high income provided, planned strategically. Before making an investment some aspects of the property must be scrutinized thoroughly.

For instance property location- good amenities and connectivity around can help generate high value on resale and help in earning high rental yields. Valuation of the property is also a critical factor. It can be done accurately with the help of a property management company. Thirdly, it is important to realize the purpose of intent (short term or long term).

Get associated with a real estate specialist that can offer unparalleled experience, quality craftsmanship and uncompromised customer service.

• Gold investments

Precious metals like gold is considered as one of the best investment options as it acts as a hedge against inflation in the short term and long term. Study states that the gold rate has carried its value in the short-term and goes high in the long-term. Though compared to other short term investments, this one tends to be more liquid.

The gold market fluctuates on a daily basis. Therefore, one must keep a tab on the trends and analyze it thoroughly before making an investment decision.

• Structured Notes

A great way of diversifying an investment portfolio is by tapping a Structured Note. By doing so one can reap the benefits of underlying assets such as commodities, equities, bonds and currencies. Furthermore, a Structured Note is designed to offer a risk-rewarding experience. This option is well protected against market fluctuations, a performer and gives predictable results.

UAE- The vibrant city has a lot to offer to an investor of any age group. There are plenty of available options that can fit every budget and offer good returns at a minimal risk. Kicking off an investment journey can be intimidating, so get started by seeking expert help from the Best Investment Companies in Dubai. Proper guidance and a wealth of knowledge will help in making an informed decision.

*This is not financial advice.*