Do you remember your childhood days? You used to ask your parents about something and they used to promise for some future date, like if you will score some good marks, you will get what you want. You might have felt, let me grow up. When I will start earning, I will fulfill all my desires with my income.
Now the journey of earning has already started. The moment you start earning, your spending plan is ready. There is no need to think much. Infect lifestyle and peer pressure does not let you get free out of this race.
But you heard from a friend or a financial advisor about starting early for investments. You wondered why? Well, because you will never find the right time to save and invest. You will always have to cultivate this habit. But do you have questions like many others that why starting early?
Answer to your question is power of compounding. This simply means, you save regularly and also reinvest all your profit or gain out of your investments. For example, you start an SIP of Rs. 5000/- at the age of 25 and keep it for next 30 years, your accumulated corpus would be more than 1.5 Crores at 12% YoY compounding interest.
Of course you will not have a smooth ride all the time, but there will be times giving you advantage of holding your investment for the long term. But if you delay the same SIP by 5 years, then your corpus would be less by around 68 lakh!
So early, save regularly and invest in Mutual Fund via SIP!
To know more about Mutual Fund & SIP or to invest in the same, you can contact us at 9879956949 or email us at hardik@niveshplanner.com.