Seasoned investors often cite the main regret of not having started sooner. However, many of the young people don’t pay any attention to this topic. But given the benefits that these early investments can bring, it is important to give it a thought and start investing as soon as possible.
Early investment means growth of money in the best manner and attain the benefit of compounding. There are several lessons we can take from successful investors.
Most of them invest regular amounts of money on a regular basis, it doesn’t have to be a large amount. You can start by saving only Rs. 1000/month and turn this saving into investment by investing it in the suitable financial products available like Mutual Funds, retirement investment plans, gold bonds, SGB etc.
If we just put our savings under the pillow, then in any case it will not grow .Investing is always a contribution to a better tomorrow. To make our tomorrow better than today, it is important to start investing early by making an asset allocation investment strategy with experts.
Small streams make great rivers
For the majority of people, investing means that they need to have a large capital. But the truth is that you don’t need to have a lot of money to start investing. Today, any individual can invest with a small amount, thanks to SIPs SYSTEMATIC INVESTMENT PLAN which can be rightly quoted as SABSE IMPORTANT PLAN and Best Mutual Funds India.
It is also beneficial to start investing small amounts from an early age, rather than launching your investment as an investor with larger amounts at an advanced age.
These investments, although initially modest, can open the door to the realization of life projects, allow to calmly anticipate retirement or generate additional income.
“Invest early to take better advantage of compounding”
As quoted by Ace Investor “My wealth essentially comes from the combination of three things: living in America, luck, and compound interest”, said Warren Buffet.
Described as “The greatest force in the universe” by Albert Einstein, the mathematical formula for compound interest consists of evaluating the additional gains obtained through the reinvestment of capital and the returns obtained from a first investment.
This operation, reproduced over the years, makes it possible to obtain much larger returns without excessive effort.
Below is a comparative table of investments made at different ages for the same amounts up to the age of 60 in order to visualize the impact of compound interest and the vital role that number of years play in the growth of money so as to give better return.
Investment Started at Age
Investment Period(upto age 60)
Monthly Amount Invested (In Rs.)
We see that even by investing the same amounts per month, the investment made at the age of 20 years makes it possible to obtain the largest amount at age 60.
So, it can be said that “early investment needs to be an early habit” as it doesn’t only give you a larger sum with a small investment amount but it also helps you to keep a balance between your spending and savings.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully. This is just an approximate calculation with CAGR 10% and does not guarantees any confirmed return.