Parents are the first from whom the child learns how the world works, what friendship is, why it is important to study, how to save, spend and invest, so that there is enough not only for lunch in the school cafeteria, but also for a bicycle or dream prefix. The first idea of how to handle money is formed by the fact that a child is watching adults. The issue of financial literacy is becoming a matter of real practice.
Youth is the right time to accumulate assets to face future uncertainties. The development of middle class social life today has resulted in the lifestyle of some people being very consumptive. This makes the awareness to invest increasingly low, especially among young people.
Many young people who are in their 20s still think that starting an investment requires large capital and will be done later when they have income and there is the rest of that income.
In fact, setting aside money to save or invest at a young age is a necessity today. At a young age or when we are still productive is a good time to collect assets.
Currently, modern investment instruments have developed with relatively low initial investment capital, such as SIP, one of the types of Mutual Fund Schemes.
Of course, having savings in the form of assets can help us face uncertainty in the future. In addition, there are some basic reasons why we should start investing at a young age. Want to know what are the reasons that underlie us to invest from a young age? Here’s the review:
1. Have plenty of time to invest
The earlier you start investing, the more time for funds or investments you have to develop so that your wealth in the future has the potential to be even greater.
2. Age affects the level of risk profile
A young investor who is included in the productive age has the ability to choose high-risk or aggressive investments, such as stock investment instruments, commodity trading in India, initial public offering stocks, or investment in mutual funds Indiaso that the potential profits to be obtained will be even greater. In investing, the higher the risk, the higher the profit (high risk, high return).
Meanwhile, those who have entered the retirement age will tend to avoid risk (conservative) in investing and choose low-risk investment instruments, such as deposits, investment in pension plans or money market mutual funds. The potential profit to be obtained is also small and directly proportional to the relatively low risk.
3. Have more time to study
Young investors have a longer time to learn about investing. So if we experience failure in investing, there is still a lot of time to learn again.
Investing at a young age will also give you a lot of experience to learn how to invest well because each investment product has different characteristics in terms of providing benefits and risks.
4. Have the ability to be able to adapt to technological developments
The development of technology today has grown quite rapidly. The average young investor in their 20s is very familiar with technological advances, such as online trading, social media, and mobile applications that can be the basis of knowledge in investing.
Currently, several Investment Services Companies have started to provide online -based investment platforms such as RKFS which is a Leading Brokerage Firm in India for stocks and investment instruments and provides financial advisory services.