top of page
  • Writer's pictureGGI

5 lessons on how to invest in your 20's

Updated: Mar 29, 2022

A. Investing your money

1. Index Funds

Index funds are a type of mutual funds where the fund manager doesn't pick stocks, rather puts your money in large caps of an Index (eg- Nifty 50). This is done in the same proportion as the Index (eg- 5% of your money will be invested in HDFC if HDFC comprises 5% of Nifty 50)

Now, many will tell you to pick individual stocks. Please understand 2 things when investing your money-

-> You aren't a full-time trader (you are mostly a busy student/working professional). Anyway, research supports that most traders have loss-making portfolios in the medium-long term.

-> This is your hard-earned money and you can't afford to burn it in the excitement of becoming rich quickly.

We need to understand that your objective should be to beat inflation, relax and advance your career as your investment grows. And not to panic and check Zerodha every day!

2. Health Insurance

Insurance as a concept doesn't come naturally at a young age because we find it ludicrous to pay someone in advance for an unlikely event. But, once you realize that an unlikely event can ruin your life savings, insurance becomes a no-brainer!

I was unlucky on this lever because I became aware of this lever in my late 20s. The early you sign up, the better it is because of the less premium- the amount paid every year for the insurance.

B. Investing your time

3. Upskilling

Ever since I have been a child, I have been extremely curious about almost everything. Why do galaxies exist? How do revolutions take place? How can negotiations help us win wars?

It has helped me become better prepared not just for life but also on how to crack interviews, get promotions and start a business. So invest your time in quality learning from good sources.

4. Invest in Quality Peer Network

I have been blessed to rub shoulders with a few of the sharpest, kindest, and most inspirational people from Mckinsey, World Bank, Entrepreneurs, Wharton MBA admits in my 20s. Surrounding myself with them made me not just more aspirational but also brought out the best version in me.

Hence, finding communities where you can surround yourself with such quality peers, can be the best investment in your 20s.

C. Invest in your relationships

5. Invest Time with your parents

It's something people devalue in their 20s, especially from an investment standpoint.

I have been guilty of not finding enough time for my parents in my quest of achieving my goals, traveling the world. It was during the lockdown I realized how much my parents had missed having me home when I wasn't living with them!

I have been guilty of this mistake and hence I say parents are the only people in your entire life who will care about your benefit more than anyone else!

Investing isn't just about money and learning!

A major component of it is also about the relationships with your loved ones who look after your well-being till eternity!

If you are interested in learning about GGI's MBA Scholar program, you can learn here.


Author- Shatakshi Sharma, Cofounder Global Governance Initiative, Ex- BCG, Advisor, Tony Blair Institute

89 views0 comments


bottom of page