Best Investment Plans for Millennial in the UAE
Best investments in UAE are all about managing risks efficiently and not avoiding them. Most millennials have gradually developed a higher appetite for risks and are not satisfied with fixed sources of income. Exponentially increasing levels of income, better and easy access to equity and banking markets are some of the major contributing factors that have led to this transformation in the country.
UAE today is one of the most rapidly evolving economies globally. Within the past couple of decades economic and financial growth in the region has created various investment opportunities in UAE.
According to statistics more millennials in the UAE have started making investments in their early twenties which gives them enough time to build a corpus for their futures. The new generation is keen towards higher degrees of risk that yield better returns making them prone to financial mistakes that can lead to loss of capital.
If you are one of the millennials looking forward to investing your hard-earned savings into investment tools/products, here’s a list of best investment plans for millennials in the UAE.
ULIP (Unit Linked Insurance Plan)
ULIP or unit-linked investment plans offer several risks involving tools to choose from such as debt mutual funds, balanced funds or equity funds. ULIPs provide scope for wealth creation and accumulation along with extensive life coverage. These plans allow investors in Dubai and the UAE to maintain a balance in their investment portfolio by equally distributing their savings depending on their risk appetite. Considering all the factors and benefits that unit-linked plans offer they are one the best investment in UAE for millennials.
National bond is an organization that is led by the Dubai bond’s company. The company was initiated by the government of UAE under the assistance of the Investment Corporation of Dubai with an ownership of 50%. The company specializes in offering Sharia-compliant plans for investment in the UAE to offer low-risk saving options. The interest rates offered on the bonds is dynamic and keeps on changing annually.
Bonds in UAE work by utilizing investments by the people to make profits and later the profit is shared amongst the investors in the UAE. Although bonds involve volatility, they are one of the best investments in UAE.
IPO (Initial Public Offerings)
An IPO or initial public offering is an investment method by which a company offers its shares to the common public for the first time to gather capital. Companies and firms that execute IPO are newly incorporated companies that gather capital using the process.
A millennial can choose to invest in IPO by purchasing shares and later trading them with the motive to earn some profit. The process of IPO is carried out by newly formed companies which make it a bit of risk involving investment. However, IPO investments in UAE have made several millennial rich.
The easiest and least risk involving form of investment in UAE is life insurance. With increased standards of living most millennials don’t want their loved ones to suffer financially even when they are not around to look after them. Life insurance is one the best investment in UAE as it safeguards your family in case of any unfortunate eventuality. Moreover, life insurance plans are easy to opt for and provide peace of mind in the long run for investors in UAE.
Gold is one of the most selling precious metals of all time. Gold has a rich history interwoven in different cultures and traditions. Investors in UAE usually invest their savings in gold with the motive of diversifying their investment portfolio by future trading and derivatives.
Gold is one of those commodities that has managed to retain its value through all these years. Although gold is subject to volatility in prices when compared to other forms of financial investments in UAE it is the most effective haven that provides a hedge against inflation and drops in the value of currencies internationally.
Stocks are the most preferred form of investment not just in the UAE but globally. Stocks are affordable investment options that are meant for investors in UAE that do not belong to the high net worth segment.
Dubai stock exchange is the biggest stock exchange in the UAE. Investment in UAE particularly in the stock market involves a high degree of risks but at the same time offers huge returns. Millennials in the UAE should consider the stock as an investment option that is potentially quite profitable for all classes of people.
Wrapping it up!
The basic thumb rule of investment in UAE is creating a diverse investment portfolio that is capable to withstand harsh market phases and instability. Market-related investments are ideal for generating high returns in small periods contrary to which fixed-income investment options help in meeting long term goals by accumulating wealth.
A diverse financial portfolio is the key to create and maintain wealth in the long run.