WHEN SHOULD YOU START INVESTING?

Article by Balaji Rao D G

What most of us lack as investors is conviction, confidence, belief and trust that our money invested in equity by way of stocks or equity mutual funds can grow and offer wealth creation possibilities. This is a serious problem that leads to wash away a great opportunity to making our hard earned money to work for us.

The only ideal option to instill the required conviction, confidence, belief and trust before investing in equity related instruments is to start investing in the month and year a child is born in your house. Do you doubt that your child will grow and not become a self-dependent person over the next 25 years? Do you have any lack of trust that your child will not become a competent person in these years? Don’t you put every effort to ensure that your child grows and achieves the aspirations and ambitions? If the answer is that you don’t doubt any of the said aspects then you should definitely start investing the year your child is born.

As an investor your investment growing over these 25 years is as true as your child growing into becoming a responsible adult; yes, there is no doubt that you will be going through tough times as parents during this journey of your child growing up at different stages of this duration, but that’s quite common and acceptable isn’t it? Your investment too would go through such upheavals in these years in similar fashion.

At the end of 25 years you will surely feel a great sense of achievement and also accomplishment seeing your child grows into becoming a competent person. What makes you think that in these 25 years if you just stay invested and display the same patience and perseverance with your investment in equity would be a bad idea?

As you are investing in your child’s future and while your child grows to become 25 years you too would have grown old and you would love your investment too would grow to offer you a handsome return that leads to accumulate a healthy corpus.

An amount of Rs.1000 invested every month from Dec 1993 till Aug 2018 in each ofIndia’s two oldest private sector mutual fund schemes – Franklin India Bluechip Fund and Franklin India Prima Fund would have grown to become Rs.37.16 lakhs and Rs.80.89 lakhs respectively. A lump sum amount of Rs.1.00 lakh invested for the same period in these two funds would have made an investor to accumulate Rs.50 lakhs and Rs.95 lakhs respectively.

Mutual funds are a simple investing tool that requires just small amounts and goals, the rest would be the magic of equity market and power of compounding. Treat your investment as your child and you will not be disappointed.

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