HOW TO START SAVING, IF YOU WANT TO INVEST

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!