Why should one consider investing in mutual funds?

Mutual funds are one of the most talked about investment instruments in the past years. Mutual fund investments can be made by anyone based on risk tolerance, goals, and cash flow. To begin your investment journey, you should start by opening a Demat account. You can start your first mutual fund investment online or offline through a mutual fund company or an intermediate. Select your mode of investment, either lumpsum or SIP. Once you do the payment, your orders for certain units of Mutual funds will be allocated to your account. It might feel scary to make your first step toward investing. Don’t worry. Contact an investment coach to get better ideas and strategies for maximizing your wealth and securing your future. Mutual funds are an investment product in which our invested money works for our future with comparatively fewer risks than equities. With a wide option of investment avenues and funds to choose from, one’s investments are to be made based on their goals and time frame. With hassle-free withdrawals, your invested amount is fairly liquid. But the most important factor of all is the fact that investing in mutual funds helps us stay financially strong.

Financial emergencies are something one cannot avoid. When considering a working professional who invests in a SIP regularly vs another professional who neglects the same citing reasons that aren’t avoidable emergencies, the possibility of regret for one during a financial emergency will always be strong with the latter.

In this case scenario, the invested professional has the option to withdraw his investments which have been compounding over the years and the un-invested professional has to go into debt to tackle the emergency. As always, debts are something that compounds negatively and digs in deep into your financials.

Mutual Funds have always been a tool to overcome such tricky situations. A true boon during financial distress.

That being said, Mutual funds investments are among the best ways to get started when it comes to investing. Let’s not regret our financial mismanagement later on - Start a SIP now!

How early can I start investing?

This is one famous question in the field of investments. You can start investing as young as you can. Starting investment at an early age can be very beneficial. For instance, when you start a SIP in your early 20s, you can have a solid corpus at the time of your retirement. A year's delay in your investment journey can significantly affect your corpus at the time of maturity. Hence, you are never too early to start your investment.

The power of compounding can provide you with big returns if you invest periodically and regularly. To explain in detail, if a person starts investing in a SIP of Rs. 5,000 at 12% returns, they will get a corpus of Rs. 50 lakhs at the age of 45.

If you delay your investment for just a year, ie, when you start your investment at the age of 26 in the same SIP, you will accumulate a corpus of Rs. 44 lakhs at the age of 45. This means that a year’s delay can cost you 6 lakhs. Hence, when you start earning a regular income, don’t think twice to start your investments.

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