Do you want to grow your money without losing ?
Do you want to be a Millionaire ?
If your answer to the above questions are “YES”, then read through the blog.
I joined a company when i just finished my college. During 2007, the salary was less. Me along with other friends just joined as we dont want to be without job. After couple of years slowly the salary started increasing. As i didn’t had any commitments to fullfil, i turned towards investing.
Though i met with losses initially, i have started understanding the most important element of investing. Start immediately and continue for years till you achieve your goals. After 8 years, i was left with considerable bank amount to start my own business.
At the same time, i had my senior friend who had given constant encouragement in all these years. When i shared my corpus, he was happy that i was able to accumulate. He was sad that in his 10 years of experience he couldn’t save anything.
When to start ?
You will start investing only when you have goals. First step would be to list down goals. It can be for Business corpus, your kid’s education, your kid’s marriage, vacation etc.
So when you know that you have financial goals to achieve, then start now.
Systematic Investment Planning is a way to invest in mutual funds. Every month fix a date and then start pushing money from bank account to mutual funds. This is Systematic Investment planning or SIP.
In India, the monthly flow into mutual funds by the way of SIP has crossed 8000 crores by April 2019.
Consider investing SIP for 15 years for your kids education,
If you are starting to invest at the age of 25, the total invested amount is just 18 lakhs.
Corpus would have been in excess of 60 lakhs.
If you are starting to invest at the age of 30, the total invested amount is just 12 lakhs and the corpus will come down to 26 lakhs.
A drastic reduction in the accumulated corpus if you delay your investment by just 5 years.
Another scenario is you starting to invest from the age of 35. Nothing but you just have 5 years to accumulate for your child’s education. Now you have identified about Mutual fund and you are investing 40,000.
Your total invested amount itself is 24 lakhs. More than the first scenario. The surprising part is the corpus is just around 35 lakhs.
Why time period is important ?
More than investment amount, it is time period which is essential to make more money in mutual fund investment.
The reason is a compounding factor. Yes, 15% compounding for 15 years will be bigger than the 10 years period.
Let’s look at retirement corpus building over a period of 35 years,
If you are starting by the age of 25 and continue till you turn 60, the total invested about is 84 lakhs only and the corpus built will be a minimum of 11 crores.
Suppose if you start after 10 years, even with 50,000 as a monthly investment, you will end up with a minimum of 8.5 crores. Invested amount nearly doubled to 1.5 crores.
Suppose you are starting by the age of 45, you need to start investing 1 lakh per month and the total invested itself will be 1.84 crores. Even at 15% returns the corpus is just around 6 crores.
This simply signifies just start investing as soon as possible. If you are not able to provide time for the money to compound, you are losing your money.
“Money Needs Time to compound and create wealth“
SIP on monthly basis is the need of the hour with inflation, medical expenses, education inflation, lifestyle expenses, etc.
Contact us for better clarity and start investing immediately.