Investment Tips: These are 5 options that will give Gen Z big returns with small investments...

Gen Z is a generation that is highly digitally connected and financially literate. These young people want not only to earn money but also to grow it by investing wisely. Starting investments at an early age offers the tremendous benefits of compounding, allowing even small amounts of money to grow into substantial sums over time. But it's important to know which options are best for them, especially if they don't have a lot of money to invest.

Mutual Funds: The Magic of SIPs
Mutual fund SIPs (Systematic Investment Plans) are the easiest and most reliable option for Gen Z, especially if you don't have much knowledge of the stock market. You can start with just ₹500 per month.

Benefits
An average annual return of 12-15% can be achieved over the long term. Your money is invested in multiple investments, reducing risk. Experts manage your funds. You can easily withdraw your funds if needed.

Example:
If you do a ₹1,000 monthly SIP for 20 years and earn a 12% return, you can create a fund of approximately ₹9.19 lakh, while investing only ₹2.4 lakh.

Digital Gold – Safe and Easy
Today's youth don't like the hassle of old gold. Digital gold can be an excellent investment option.

Advantages:
You can buy 24-carat pure gold. You can start investing with just ₹100. There's no hassle of making charges. You don't need to worry too much about safety. You can also convert it to physical gold in the future if you wish. Furthermore, gold always beats inflation and provides stability to your portfolio.

Where to invest?
You can buy digital gold on platforms like PhonePe, Paytm, and Google Pay.

Public Provident Fund (PPF) – Guaranteed Returns
PPF is perfect for those seeking a long-term and safe investment. It can help build a substantial corpus over the long term.

Benefits
You can invest a minimum of ₹500 annually. However, larger returns will require a larger investment. The government sets the interest rate every quarter. Currently, it's 7.1%, which is better than many other schemes. Being classified as EEE, it saves you tax in three ways.

How to invest?
You can start this scheme by visiting a bank or post office.

P2P Lending (Peer-to-Peer Lending): Lend money directly
P2P lending is a new investment option where you lend money directly to others and earn interest.

What is it?
Through online platforms, you lend money to individuals or small businesses in need.

Advantages
Typically offers higher interest rates than bank FDs (up to 10-18%). Adds a new asset class to your investment portfolio.

Fixed Deposits (FDs): Safe and Stable
If you have a lump sum and don't want to take any risk on your investments, FDs are a good option. You deposit money in a bank or post office for a fixed period and earn fixed interest.

Advantages
Your money is completely safe (insured by DICGC up to ₹5 lakh). You know in advance how much interest you will earn. Market fluctuations don't affect it.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.