Investing Funda: The Early You Start the Better It Is

Investments in bonds, stocks, funds and Real Estate have become popular ways for many people to earn extra income, fulfil financial goals and to create a corpus. At a time when a person’s expenditure tends to exceed their regular income, it is crucial to adopt the habit of investing from an early age to meet one’s financial needs and to build a corpus for the future.

The reason why starting an early investment is better:

The following benefits highlight the importance of investing early:

  • Wealth Creation:In order to create wealth, a young investor has to realise the merit of beginning investmentsat an early age.When one starts investing early, they can easily create wealth by putting away a small sum of money on a regular basis and for a long period of time. This will not only help them create wealth but will also enable them to do it without putting a lot of pressure on their monthly budget.
  • Combat Inflation:Inflation is an economic factor that tends to hinder the process of investment significantly. During inflation, the purchasing power of an investor decreases while the cost of everything else keeps on increasing. Starting investment early helps to increase the purchasing power of money and also enables investors to tackle the blows of inflation in the market. A long-term investment plan with a higher rate of return usually proves effective against inflation.
  • Improve finance management: Starting investment early in life tend to infuse a healthy habit in the investors in terms of expenditure. Early investments help the investors familiarise themselves with the rules of the investment market which ultimately help them to simplify their budget and organise their savings better.
  • Strengthen Compounding Power: An investor can grow a solid corpus over the years by making regular investments and then continuously reinvesting the returns earned on the initial sum of investment. When an investor decides to start investing early in life this allows them to keep their money invested for a long period of time which ultimately helps them to strengthen the compounding effect on their invested sum.
  • Higher risk appetite: When an investor starts investing early in life they can put their money in investment tools that bring high returns and has a high-risk factor associated with them. The lack of major responsibilities and financial burden help them to take risky investment decisions which wouldn’t be viable for investors who want to put their money in such tools in the later part of their life.
  • Big retirement corpus: Starting investments earlier in life make it easier for young investors to build a solid retirement corpus with minimum savings.This move not only helps them to secure their retired future but also doesn’t put much pressure on their monthly budget.

The early you start investing the better is your chance to make the most of different market phases. To know more about the benefits of starting investment early and the best investment tools for young investors, contact our expert professional analysts and financial planners to plan your investments properly.

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Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not an indicator of future returns. Wealth Redefine is a AMFI registered Mutual Fund distributor – ARN - 167127

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