As a young person, you have a couple of advantages 1. Time on your side: you have 30-40 years of earning over which you can accumulate wealth 2. Ability to absorb volatility: since you are earning, you can handle fluctuations in the value of your investments. Gives you the ability to take risk. How should you invest: 1) Select investments with a realistic expectation of return: nothing is going to give you 50 or 100 % in a short time. Stock market gives about 16% over the long term and that’s the highest you can get from any financial investment. Look at some research here (How Long Is ‘Long Term’). 2) Don’t focus too much on tax saving: Most tax saving investments do not provide adequate return. 3) Avoid Insurance as an investment. 4) Start early to take advantage of compounding. Someone who starts investing at 25 and stops at 35 will have more money than someone who starts at 35 and invests until retirement! You can invest in relatively riskier instruments like mid-cap funds or small-cap funds for the major initial duration of your investment. This will ensure you get higher returns over the long duration that you have been invested in the market. And as you are approaching the retirement age or maturity, you need to ensure that your accumulated corpus limits its risk, and hence you gradually start transferring money in relatively low risk instruments like debt funds.