Five Investment Beginnings This New Year

Christmas, the festival of joy and New Year 2020 are around the corner. It’s a special time of the year when the atmosphere is vibrant and filled with happiness. Seasonal delicacies, gifts, new clothes and New Year’s resolutions are some of the things associated with this festival. After all, it’s the perfect time to bring about some positive changes and try new things. Our country is filled with many young investors who wait for the New Year to venture into the market. If you’re considering making investments in 2020, then here are some lucrative options that you can consider.

Index Funds

Index funds replicate the stock market index (like the S&P CNX Nifty or the BSE Sensex) by investing in those exact stocks that comprise the market index. For example, if you opt for the Nifty index fund, then your money would be invested in the 50 companies that constitute the Nifty, in equal proportions. One of the main advantages of index funds is that their cost is generally lower in comparison to other funds.

Gold ETF

New Year is the perfect time to buy precious gems and metals. Another reason for seriously considering this option is that gold is a great tool to counter inflation. The Gold Exchange Traded Fund (ETF) is quite similar to open-ended mutual funds. Your money is invested in standard gold bullion with the gold purity being assured. In this option, you could also consider investing in small denominations of gold.


Unit Linked Insurance Plans or ULIPs will provide you with life cover while also helping you invest your money in equity, debt or hybrid funds. Apart from the added life protection, a ULIP is also a good idea since you can enjoy ULIP benefits under Section 80C of the Income Tax Act as well.

Company Fixed Deposits

If you want to add to your New Year bonus, you could consider investing in fixed deposits floated by your company. Companies normally float deposits to boost their operations by raising capital. However, unlike bank fixed deposits, company fixed deposits are unsecured instruments. One of the key features of this option is that it offers an impressive interest rate ranging from 9% to 14% per annum.

Children’s Education Plans

These plans are offered by insurance companies and are designed to help you cover your child’s education costs. It’s beneficial for parents as it assures a fixed sum. Children’s education plans are also known for providing tax benefits.

Now that you know the various options, you can celebrate the New Year by making smart investments and growing your money.