Best Investment strategies according to Age

An investment is an asset that is acquired with the intention of creating wealth and appreciation. As there is no one size that fits for all similarly there is no best investment strategy that best suits all. Everyone wants to know what is expected return on their investment that they make. 

What to invest in? How to invest? and What are the returns that you can expect? are the basic questions that investors want to know about an investment. Once these questions are answered the investor will make his decision on their investment. Earning good returns on investments will not happen overnight; it will take a lot of time, sometimes few months or years for the portfolio to grow. 

The general definition of investment is not about making your investment in the stock market. It is about the overall investment where you make your money invested in real estate, gold, machinery, skill development and various other forms of investment. The returns will be generated based on the investment and the underlying portfolio. 

Importance of Investment Strategy

If you start investing early in your life you will get the right returns at the right time when you need money. Age plays a predominant role in the investment and accordingly the investment companies provide policies. 

For example, if you are making an investment in the insurance instruments then the returns and benefits will be scaled according to the age. Lower the age, higher the benefits and vice versa. 

Financial planners can assist you in making the right investment according to your age. They assist you in navigating through the various events of your life and based on this you can make your investments. The biggest events which need a lot of your money would generally be expenses for education, marriage, first child and retirement. Considering these factors if you make your right investment at the right time and at the right age you can make a debt-free living. 

Click here to know Investment options for 60 citizens

Long Term Investment Strategy (20+ years)

When you start investing at an early age it will give you compounding returns. As Einstein said “Compounding is the Eight Wonder”. The investments made at an early age into compounding investments will give you higher results when you close your investment. 

The value of money increases over a period of time and the investments that you make at an early age will give huge benefits. By early investment you enter into the financial world at an early stage. A 20+ years investment time horizon is the financial advice of many financial planners.  

The portfolio of the investors investments of the 20+ years should be more into generating assets that will grow over a period of time with less risk and more returns. Real estate, equity investments and other leveraged investments should be the assets investments that you should focus more on. 

Many think that stock market investments are not good investments and hesitate to invest. The fact is even if the market is volatile you should invest your money in the stock market. When the stock prices are less you should invest, but this does not mean that you should invest in all the companies which are at low price. 

You need a good education of the stock indices, understanding of the market, good knowledge of the market instruments then you can decide on when and where to make your investments. 

Here are the investment tips that you can make your investment in the instruments. The investment allocation that you make should be according to your requirements. The following are the options in which you can make investments and get benefited.

1. Investing Index Funds

2. Investment in Real Estate Investment Trusts

3. Investments with help of Robo Advisors

4. Buying Fractional Shares of a Stock or ETF

5. Buying a Home

6. Investing for a retirement Plan

7. Paying off your Debts

8. Improving your investment Skills

It is not possible to make investments in all the above listed strategies. Also, it is not mandatory to have your investments in all the strategies. Even if you make your investments into three or four instruments you can be stable in your financial situation. You can grow your wealth and increase your investments by starting investing at an early age. But don’t forget to consider your risk appetite and set a balanced portfolio.

Medium Term Investments (5 to 19 years)

When you are thinking strategically about the future then you should make investments according to your goals. Generally the investments that you make should be that which will not lose their value in the future. If you are expecting returns on your investments in between five to less than 20 years you should start investing accordingly. 

If you want to buy a car, you can make investments from your savings to achieve the goal of buying a car. Similarly, if you want to buy gold you can make investments monthly to achieve your goal. Making recurring deposits or fixed deposits where you have a goal for higher education for your children, their marriage and future prospects. Below are some medium term investments like.

  1. Fund deposits
  2. Property investments 
  4. Retirement funds
  5. Growth investments

Medium term investments can be made into investments into mutual funds, bonds, stock indices, equity funds, unit linked funds, provident funds, fixed deposits, pension funds schemes, savings schemes, equity market instruments, investments into gold, real estate investments and others.

Click here to know about What type of investor are you?

Short term Investment (Less than 5 years)

Any investment activity which is less than 5 years where you are putting your investments and your goal is to achieve a short term goal. These investments are typically into investing in Treasury bills, government bonds, high returns savings bonds or accounts, bonds, futures, mutual funds, commodities, currencies, metals, stones, commercial papers, certificate of deposits, derivatives, Sukuk (Islamic bonds) and not limiting to others which are listed below.

  1. Recurring deposits
  2. Money markets
  3. Debt Instruments
  4. Mutual Funds
  5. Corporate deposits

Those who want to invest into the deposits should have an account. Based on the investment category the banks or financial institutions will provide documentation for the investments. Investment instruments are available for a period of 30 days or 60 days or 90 days the interest paid will depend on the underlying investments. 

Short term investments are quick and early result oriented where the investors want to get returns in a short period of time. You can make your investment and expecting high returns will depend on the risk factors associated with the investment. The goal of your investment is to make you financially independent. 


Having an investment plan will surely help you to make you know where your money is coming from and where you want to spend it. Think of your financial goal and make your investment strategy carefully. Invest your money into long term, medium term and short term investments. It will guide you to make right financial decisions from what you have invested. You can structure your invested money accordingly to achieve your dreams. 

Meet the author
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Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It’s a commercial mortgage banking company. He has a “Doctoral Degree in Commerce” and two master’s degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.



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