For new age investors who are just starting their investment journey, it is imperative to understand different aspects of investing in mutual funds.
The best time to start investing is at the start of one’s career. As a young investor who has a long working life to invest, and the advantage of time to their side, there are several benefits of investing early as listed below:
Benefit from the power of compounding: The mutual fund returns get reinvested and thereby gets added and compounds your investment corpus.
Avail better risk-reward tradeoff: You can afford to take aggressive bets on equity mutual funds and due to the long duration, you can average out the cost of your investments.
Brings discipline: You can start with an SIP (Systematic Investment Plan) of any ticket size and invest consistently, bringing discipline to your investments.
Achieve your goals: You can achieve your long term goals such as pursuing higher studies, buying a house or a car, or even your retirement.