Skip to main content

Investing early and for long term to buid bigger corpus

 

Systematic planning and a disciplined life have proven to be the formula for success. How can it be different with your money?



   For many young professionals, it is never an easy task to deal with money. While many find it difficult to generate surplus, those who have the luxury of extra earnings are too worried about its safety. In fact, it is only a small percentage that is willing to take the risk element and experiment to build a corpus.


   Now, why should a young professional turn young investor when he has decades ahead of him to make money?


   The answer is simple. What is begun early always ends up good. Whether it is during student life or professional life, those who plan their days and years well are likely to end up on the winning side. It is not very different with money. To begin with, young professionals who begin taking their incomes and expenses seriously are likely to end up with a bigger corpus than those who take up the task a few years later. Even a saving of Rs 1,000 a month can make an investor worth crores over a period of 30 years.


   In the whole process of investing, the decision to save is probably the easiest thing to do. The choice of investment product is much more challenging as a fresh investor is driven more by the need to protect his savings. Not surprising considering that it would be difficult for the investor to look at the long-term picture. In fact, many fresh investors would hate the thought of thinking long-term when there are so many expenditure options for the earnings in the short term. More often than not, keeping the money intact without diluting its value would be the prime criteria. In a nutshell, most young investors are likely to think the 25-year-old professional.


   While putting aside money in a fixed instrument like a fixed deposit is nothing new or wrong, young professionals can afford to look at aggressive options since they have the luxury of time on their hand. Property, commodities, and equity are some of those options which help in building wealth. While property requires a larger commitment (in terms of amount), commodities and equity are more volatile. While they pose the challenge of good understanding and risk-taking abilities, they have the potential to offer better returns over the long term.


   In this context, you should also look at the option of saving on a regular basis as wealth creation is a long term process. If the recurring deposits and monthly contributions to public provident fund were the preferred options in the 1980s and 1990s, systematic investment plans (SIPs) have been the much talked-about options in the last decade. While the former allows wealth creation without much risk, the latter has the ability to beat inflation over the long term.


   Irrespective of the choice of product, investors who think of saving and investing at an early stage in life are sure to be winners.

 

Popular posts from this blog

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...

Different types of Mutual Funds

You may not be comfortable investing in the stock market. It might not seem like your cup of tea. But you can start by investing in Mutual Funds. Many first-time investors invest in Mutual Funds. This is because they do not know how to invest in individual securities. Basic information on Mutual Funds People invest their money in stocks, bonds, and other securities through Mutual Funds. Each Fund has different schemes with specific objectives. Professional Fund Managers look after these schemes. Your Fund Manager could help you invest in a scheme that suits your financial goal. Functioning of Mutual Funds You could make money through Mutual Funds in different ways. A single Mutual Fund could hold many different stocks, bonds, and debentures. This minimizes the risk by spreading out your investment. You could earn dividends from stocks and interest from bonds. You could also earn capital by selling securities when their price increases. Usually, you could choose to sell your share any t...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now