Haven't yet started Investing ?? Still Thinking ??
I have started this blog with the intention of sharing my views, my experiences which are directly or indirectly related to the financial world. I have been in these sector the last 15 years and it is one of my favorite sector. I will be providing lot of insights on Equity, Insurance, Mutual Funds, Banking and other financial points.
Things are pretty unusual and a bit complicated when you have decide about your savings. Well it’s the human mentality to think about a thousand times to decide where to invest. After all, its your hard earned money. You are undecided and look for various options of investment. You start looking here and there for advice. Go through various newspapers, magazines and even the TV shows. But you are still undecided. The question is when and where should I invest ? There is no doubt that you have to start savings and begin investing at an early age and that is when you start your first job.
WHEN SHOULD ONE START INVESTING ?
A fresher should always start to invest when he starts his first job and gets his first paycheque. The amount can be anything. One can start even with a small amount of Rs 500/- monthly which over a long period of time will grow into a good corpus. Now how do I make it a big corpus. Well the answer to this is, you can increase the investment amount by minimum 10% every year and be disciplined in your investment. By discipline, I mean you should continue your investment and not stop in between unless required. Discipline is very very important in Investing. Patience is also the key here. People don’t become billionaire or multi-billionaire in a day or week or even a months time. You have to wait to see your investment grow. So what should be the waiting time ? The waiting time must be at least minimum 5 years. If you can wait for more than 5 years, it will be icing on the cake. You will see your amount grow into a corpus and that too at a compounding yield. You need to have that patience of waiting for more years.
INVESTING IN MUTUAL FUNDS MONTHLY :
Now a new question arises where should I Invest ? There are many options. Be it Recurring deposit with Banks, Post offices, Small Saving schemes or even for that matter Bank Fixed deposits. But by investing in these schemes, How much will be the returns ? How much I will get ? All the above schemes mentioned above are traditional means of investing wherein the returns will be around 8 % in today’s time. The interest rates have drastically come down than what they used to be 5-6 years back. And also considering the rate of inflation (will be discussed in detail in another post), how much am I actually getting ? That is the question to be asked. But yes you have the right to ask since it is your hard earned money.
If you have just started working and this is your first job, you should started investing in Mutual funds through Systematic Investment Plans (SIP) at a very young age and that too for a longer period. Longer period ? Yes. The longer period must be for atleast 10 years. Start investing at any early age and increase your investment amount by 10% every year and see the result. You will definitely gain in the longer period of time. There are various category of funds which are available from various Mutual fund companies. They are Equity, Debt , Hybrid funds, Diversified funds, Thematic funds, Children investment funds. At a young age, You can start with Equity fund. We shall discuss in detail in my another post about the types of Mutual Funds.
So if you are thinking of starting investing, please don’t think much. Don’t delay …Start Investing now.