Starting investment earlier has lots of benefits. In Investment, the earlier you start more you get and the less you struggle. Following are the benefits of investing early :
1. More Returns :
By investing earlier you get more time to save and invest. As early as you start you get more returns at your targeted age.
2. Compounding works better :
Compounding works very well if you give more time to your investment. For Example, if you invested Rs. 1.00 Lakhs for 20 years, you will get Rs. 9.64 Lakhs at the end of 20 years @ 12% p.a. If you invested Rs. 1.00 Lakhs for 30 years, you will get Rs. 29.95 Lakhs at the end of 30 years @ 12% p.a. You can see a massive difference in both the maturity amount. Now imagine, if you have invested Rs. 1.00 Lakh at the age of 20 and you need to withdraw this fund at the age of 60. What will be the amount at the end of 40 years?
3. You can take risks :
By investing earlier you can take some risk by investing in risker investment. For example, investing earlier in a small-cap equity fund will you handsome returns in a long time by staying invested for a longer time.
4. Secure your future :
Investing at an early age will secure your future. You can use this investment for your living after your retirement. You need not depend on anyone after retirement
These are some benefits of early investment
Post a Comment