The early 20s, life is full of fun and friends. Why it should not be, you have a good paying job and you have your freedom that’s all what matters, right.

At the end of every month, that wait for salary kills like anything. Enough of lecture now let us get to business. An individual should start investing from his/her early life. As most of the individuals do not discover this thing early and lose the power of compounding and starting early.

If you spend 2,000 less every month and start investing the same in a diversified mutual fund for just 10 years. Then you will see the power of compounding working for you.

Check this screenshot for a while.

With just 11% of yearly returns, you can almost double your money in 10 years and that too full tax-free. Do note that the returns taken into account are very nominal and one can also get 20% returns over time if his/her investments are planned wisely.

Do not worry too much about the stock market crash or erosion of your wealth. Long-termĀ investing always create wealth and rewards a lot. Short-term investmentsĀ are often volatile but if investments are planned at an early stage, it can create wonders for you.

Have look at 18 years Nifty 50 chart.

In the last 18 years, Nifty 50 has given a CAGR of 10.9% which is wonderful. We also had a stock market crash in 2008, still, it manages to give that wonderful returns.

One should remember this quote-

Read: Thinking to invest in MF, Open account with FundsIndia

Read: Top performing Mutual Funds from VRO, Crisil

Now some tips

  1. Save as much as you can from an early age.
  2. Start compounding your savings.
  3. Read a lot and invest in yourself.
  4. If your time permits read about basic elements of Investing.

Get these 2 books and I bet you will not regret buying them.

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