If you are in your 30s, there are so many things that you can do, as you have an advantage with age and hence time. For example, your ability to take risk is far higher than somebody in his 40s and 50s.
1) A demat account
If you are in your 30s, it is just the right time to save money by investing in shares. Over a period of time, shares have given the best returns to investors. Your ability to take risk is far higher than most others.
It is also the right time, when your ability to get returns by holding for long term would help. For example, if you are 32-33 years of age, you can buy blue chip quality stocks and easily hold for 10-15 years to multiply your returns.
Tax free dividends on shares and long term capital gains holding period of just 1 year, make they very attractive. Of course, you should seek help for the purpose.
2) Public Provident Fund Account
You just should not miss this. The lock-in period of 15 years in the Public Provident Fund is just right for a person in his 30s. Now, there are many reasons why you should have this account.
One is that it is among the few instruments in the country that offers you dual tax benefits.
You get tax benefits under SEC80C of the Income Tax Act and the interest income is exempted from tax.
3) Sukanya Samridhi Account
Not all individuals in their 30s can open this account. If you are a father in your 30s and have a daughter, this a must have account. The interest rates have been slashed recently, but, it is one of the finest investments in the country.
Presently, until June 30, interest rates on this instrument would be 8.6 per cent. The government will thereafter review the interest rates every quarter.
The interest income is tax free and the amount invested qualifies for tax benefits under Sec 80C of the Income Tax Act.
There is some amount of money that you should also invest in Unit Linked Insurance Plans.
This is because, you get a decent insurance coverage and also, if you opt for stock market related funds, you can get superior returns. Now, this among the few instruments in the country, which give you a tax benefit under Sec80C of the Income Tax Act and also the returns are tax free in the hands of the investors.
You also get a decent insurance coverage of 10 times the premium paid. Let us say that you are paying a premium of Rs 1 lakh annually. You can get an insurance coverage of Rs 10 lakhs. No medicals and stuff is needed.
5) Mutual Funds
An individual in his 30s, should also invest in mutual funds, though we cannot call it a mutual fund account. Depending on his ability to take risk, one can look at equity or debt dedicated funds.
If you are able to invest for a slightly longer term of 3-5 years, the concerned individual could get decent returns.