Benefit of Early Investing

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Investing at an early age is a welcome, if not a necessary habit. Earlier you invest, the richer you get as shown in many surveys. It instils financial independence and discipline. An early investment teaches the real difference between investments and savings. Age should never be a barrier to make an investment, as you are never too young to invest. Early investment also gives you a chance to take risk, and if loss incurs, have more time to make up for the loss in investment. Thus, early investments give more time to grow in value as probability of earning handsome returns at a young age gets enhanced due to high risk-taking ability. Those investing at a later stage in life get less time to recover his losses and so are conservative and avoid investments with risk.

With early age investments, one develops a habit of saving more, which is diverted towards investment. Early investments lead to compounding returns. Time value of money increases over a period of time which contributes towards generation of wealth. These investments made at an early age are hugely beneficial at the time of retirement. Compounding effect is also an effective tool against inflation. Investments at an early age gives you a secured future as investment made at an early age will help you get through tough times. And need for borrowing decreases drastically. Early age investment increases the probability of reaching financial stability at a young age.

Life after retirement is very challenging, so planning for retirement at an early age will lead to a happier life after retirement. Hence earlier you start, easier is to build wealth. So, investing at a young age is the best decision one can take for achieving future goals, wealth creation and retirement planning.

Views are personal: The author – Mr. Shagun Sutaria is a Mutual Fund Distributor from Ahmedabad.

Disclaimer: The views expressed are of the author and are personal. TAMPL may or may not subscribe to the same. The views expressed in this article / video are in no way trying to predict the markets or to time them. The views expressed are for information purpose only and do not construe to be any investment, legal or taxation advice. Any action taken by you on the basis of the information contained herein is your responsibility alone and Tata Asset Management will not be liable in any manner for the consequences of such action taken by you.

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