Why delay?

It’s always better to start investment in an early age to ensure long term benefits of the same. This is also because people can afford to take a high risk at an early age and they have long time duration to explore new fund policies and plans. The very first step towards your investment is to take help from an advisor or a good financial planner. 

Another very important point to take note of is that you need to decide and know how much to save. This can be decided on basis of your earnings and it is usually advisable to save around 10% of your income every month towards investment plans. Once you start saving, you will have a total of more than 30 – 35 years to save your money. After so many years of saving you can consider entering into mutual fund equity or go for a safe and better option that is SIP. There are various reasons why SIP is a preferred option is because it gives you the power of compounding. In SIP, you can put a certain amount every month.

When you are young and just started working, you tend to spend a large amount of money in a short time. The feeling of independence is something you have never experienced before and hence you spend a lot. However, it is only at this stage when you have to keep in mind that the earlier you begin to save, the better is it for your future. The simple way to achieve this objective is by opening a SIP. A SIP is putting aside a fixed amount of money every month and your plan is revised every now and then to make it more effective.

Furthermore, there are various types of mutual funds schemes– Growth Funds, Value Funds, Opportunities Fund, Contra Funds and Dividend Yield Fund. These are product labels for mutual funds. Each mutual fund is beneficial in its own way and you can opt for the one suitable for your product.

In addition, it is during the month of January – February when many people rush to invest in small schemes in order to claim tax rebate. However, this practice is not correct; to save more tax you need to invest for many years. This is called Lock-in clause.

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