Investing right in the early stages of one’s career is crucial. Making informed decisions and putting money in safe options is important. But, many youngsters are apprehensive about investing for the fear of losing money. Let%u2019s see what experts have to say.
Jitendra Solanki, Registered Tax and Investment Specialist with SEBI says, %u201C To build a retirement corpus at an age of 50, one should start investing at an early age of 25…At this age, one would be earning, but the chances of having a huge amount of investment are less. Mutual fund SIP is the best option. You have to invest for a long time to fill the ocean drop by drop,%u201D according to livemint.com.
Also Read: Know how the new labour codes will affect your take-home salary
It is often seen that people plan their retirement at an age of 60 but if money is invested wisely in SIP, people can opt for early retirement with enough savings. Experts highlight the importance of SIP and also say that early investment is the key to long-term savings.
%u201C Investing Rs 26,000 at an age of 25 might not be easy. But if someone is adamant to achieve a Rs 10 crore investment goal when he or she turns 50, then they require sore financial discipline and commitment to the investment goal,%u201D Solanki told the website.
He further advised the investor to increase one%u2019s annual step-up rate by 15 %, rather than starting with Rs 26,000 monthly SIP.%u201D
Also Read: SBI’s new rules kick in from July 1. Read all about them
According to him, %u201C If an investor starts a SIP at 25 with the investment goal of Rs 10 crores assuming 12 % annual return and the annual set up rate is 15 %. Then the monthly SIP of Rs 14,750 will allow the investor to gain Rs 10.2 crore.%u201D
So, going by the expert view it is advisable to keep the annual step-up rate as high as possible.
