Studies have shown that if people don’t start investing early, they seldom get around to it. The good news is that close to 7 in 10 investors start investing by age 35.
“Start small,” says Franklin. “Inactivity is very costly.” The key to good investment portfolio growth is not to invest all your cash reserves at once but instead, start investing them slowly over the course of a year or two. Then, mitigate the risk by selecting a diversified portfolio of investments that will offer the potential for not only capital appreciation but also provide growing investment yields. It’s small steps like these that will reap big investing rewards over your lifetime.
Time value of money. The time value of money, a key concept in finance, is the increase in the amount of money because of interest earned over time. Basically, the earlier a person starts to invest, the greater the chance is for the money to grow and for interest to compound.
The most important long-term goal is saving for retirement. After saving for retirement, you can earmark extra money for other goals like Child Education, Child Marriage and buying Home.
Reach long-term goals by being a disciplined saver and investor. Consider the time value of money. Starting to invest when you’re in your 20s will produce a larger nest egg than if you start saving at age 30 or later — but it’s never too late to start.
Here is the checklist to find out where you stand:
To build wealth using Mutual Funds: Set practical financial goals, stay invested for long periods, using SIP for disciplined way of investment and get power of compounding which would create wealth on long term.
Everyone’s priorities are different. Take our advice and we would help to customize it to your own unique situation.