22 May 2023
Millennials in the present century are characterised to be tech-smart and intelligent. But as investors, they are blessed with one trait that is of significant importance in an investment journey. Time!
Young individuals have a long investment horizon, and they should use the extended time endowed to them optimally to fulfil long-term financial objectives, as this will help override high inflation, global instability or any unfavourable scenarios in the future.
Here are three tips to consider for millennials and younger people looking to invest in the future.
Save before spending:
Youngsters should consciously try to utilise every penny they earn to achieve a goal. It is generally not wise to squander away your income for short-lived pleasures. One should make investments similar to the case of nurturing a tree. The tree will start bearing fruits with careful planning, patience, and the right ingredients. Similarly, youngsters must see the investment journey as a process to create long-term wealth. Savings should begin once earnings start, irrespective of the level of income. Today, investment vehicles like mutual funds offer options where investors can invest as low as Rs 100 to begin their investment journey. Every grain of fodder will help your investment tree to grow and bear the desired results.
Have clearly defined financial goals
Investing without purpose is like undertaking a road trip without a map. Investments should preferably be aligned with your financial goals like marriage, children, education, business, holidays and even retirement so that you can make informed decisions on how much to invest, where to support, and the time required to invest.
Consider seeking help from a financial expert
As a freshman in the world of investing, it is natural that you don’t understand all the risks and benefits associated with investments. It can be tricky if one is not careful with one’s investment decision, so it is better not to tread on this road alone. Generally, Investment advisors and fund managers have the required skills and knowledge about finances and investing. The various challenging economic scenarios they face while dealing in this domain helps them get equipped with relevant tools and experience to tackle risks from uncertainties while creating opportunities for optimal results by picking out the suitable investment strategy.
Remember, if you invest early, it will give you the ability to experience life fully.
These materials are not intended for distribution to or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. The distribution of this document in certain jurisdictions may be restricted or totally prohibited, and accordingly, persons who come into possession of this document are required to inform themselves about and observe any such restrictions. Investors may make an investment decision/decision after necessary due diligence, understanding the risk appetite and as per the financial objectives.
Mutual Fund investments are subject to market risks; read all scheme-related documents carefully.