Birla Sunlife - Grow My Money - Investing in Mutual Funds (MFs): Is it ever early?

There is nothing like ‘too early’ when it comes to create wealth. But there’s something called ‘too late’Having invested in an instrument like a bank account or a traditional saving instrument is a good way to invest your savings.However, if you aim capital growth and potential returns in the long run starting early is always a good step forward.An investor through mutual funds may aim that even when inflation erodes a commodity he may seek for minimizing future financial risks and maximizing financial security through mutual funds all the more pronounced.Mutual Fund, being an indirect investment, in a basket of funds, with help from a professional fund manager, allows for quantities to stay small and hence, aims to erode risks of market-volatility to a reasonable extent. Go for options based on the advice that your own risk appetite indicates as per a discussion with the fund advisor.Now, for the timing part, if you have heard of compound interest, you would comprehend quickly how starting early can help you grow even on a small base of money and even if you have a risk-aversion scale that does not allow you to invest big.Mutual funds seek money to grow at a compounded rate and hence probable interest augments every year.This possibly becomes more attention-grabbing when you know that inflation is working against you and yet, you either do not have money to invest or you would invest small to guard against market-turbulence.MFs often also allow you to invest your money every day instead of a fixed tenure and the beauty of compounding is that it seeks that even with a paltry sum; you can invest strikingly when it comes to smart investments.The sooner this process begins the better.Also, since it’s plausible to accommodate, and then grow, even small sums of money, you can start at any stage of life or career, no matter how young or tiny it may seem. The reality is to invest it with the right advice so you may consult your financial advisor before investing. That way starting early will not prove a burden to you, your lifestyle, your investment taste, your inclination towards risks; and at the same time; your money will be invested in itself.

[“Source-timesofindia”]