Between
now and the end of your income-earning era, a lot can and will happen. You
might lose our job(s), witness an appraisal or a pay cut, move or become
disabled and unable to work. Strategising about the income you earn
now to create plans for your future is one of the best things that you can do
with your hard-earned money.
Saving
means taking a break from the paycheck-to-paycheck cycle or allowing yourself
for a big purchase down the road, like a vacation, vehicle, or house.
Surprisingly, living paycheck-to-paycheck cycle, isn't something that happens
to just those individuals with lower incomes, but to anyone unable to create a
budget and follow it, and to make savings goals and reach them.
Here’s
what you should know to start investing:
1. Start investing as soon as you can
Investing
while you are still young is one of the best ways to see significant returns on
your investments. Thanks to the power of compounding, where returns work to
make more returns on their own, the earlier you start, the more and better
returns you reap.
2. Decide on the investment amount
To decide on the investment amount you must have a flair idea about your
investment goals, investment horizon and risk appetite. For instance, an
investor with high risk profile and a long-term investment horizon might
consider investing in
mutual funds with a greater exposure to equity securities.
3. Open an investment account
Opening an investment account is quite easy. Just visit to your nearest bank
branch and seek for a relationship manager who will walk you through the
process of account opening process. Just submit your KYC (Know Your Customer)
details and you are good to go.
4. Understand your options
There are various types of investment options available to an investor. If you are
looking to create wealth over time you might consider mutual fund investments. There are various benefits of mutual funds
enjoyed by the investors in whole. Tax exempt, inflation-beating returns, higher
dividend, are few of the benefits depending on the type of mutual fund chosen.
5.
Choose
the best mutual fund
schemes for your strategy
After understanding your options, choose the best investment haven for your
portfolio. You can choose to invest
in mutual funds online via a Systematic Investment Plan (SIP).
SIP investments allow investors to invest as low as Rs500 per month.
Lay out a plan. An
investment plan will help you to realise your goals and the best way to achieve
them. Always remember to account inflation as they have the potential to hamper
your returns drastically. Seek the help of a professional who can guide you
through the entire process of investing. Remember, it’s never too late. Happy
investing!
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