You haven't started investing as yet? - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

You haven't started investing as yet?

Jun 24, 2010

Life's a journey, not a destination. And so is investing. We study hard and work hard, so that we have ample money to save and invest for our future. But then there are many of us who just save, and never think of investing those savings. Some wait for the 'right time' to start investing. And then there are others who wait to save the 'right amount' of money before they start investing. But then, as you know, investing is a journey, not a destination. And the sooner you get on to this journey, the better it is for you. See the graph below. The annual return you require on your investments to reach a stated target increases as you grow older. Assume you start with Rs 250,000 investment when you are 25 years old. You can accumulate Rs 10 m when you turn 50 at an annual return of just 16%. But if you start with this amount (Rs 250,000) when you turn 30, your annual return has to be 20% to reach the Rs 10 m target by age 50. The target annual return shoots to 45% if you start at age 40!

So, what are you waiting for before starting to invest in stockmarkets?

If you are waiting for the 'right time', it is now!

Yes, we mean it! India is staring at years of strong economic growth and bull market. There is huge amount of domestic savings that is still to come to the stockmarkets. Just as a statistic, just around 4-5% of Indian households' financial savings are invested in equities. And this will definitely increase as the economy grows stronger and people see a rise in their disposable income and therefore risk taking capabilities.

So, if you catch the tide early, you can enjoy your ride up over the next 5 to 10 years.

Anyways, if you are waiting for the 'right amount' of money to start investing, you do not need to wait after all! Start small, and keep adding to your investments on a regular basis.

By investing the money slowly and steadily, you are able to better ensure you have money for your later years. And just because your later years are far away doesn't mean you should wait to invest. The best investments are the ones that take time to pay off.

So, what are you waiting for? If you haven't started investing as yet, start now!

Equitymaster requests your view! Post a comment on "You haven't started investing as yet?". Click here!

4 Responses to "You haven't started investing as yet?"

Amrita

Jul 7, 2010

pls reffer some low cost funds expecting good return

Like 

selladurai Subramaniam

Jun 26, 2010

Sir
Kindly guide me for good investments for my retire life. i have invested 2 lakh in the stock market and 1.5 lakh in mutual funds. I would like ti invest another 2 lakh and i am 55 year old.

Like 

rajasekaran

Jun 25, 2010

please guide for the investments. For one lakh rupees
mail me how we can distribute among the sectors/companies instead of recommending single share

raja

Like 

ramniwas sarda

Jun 24, 2010

please guide for the investments.

Like 
  
Equitymaster requests your view! Post a comment on "You haven't started investing as yet?". Click here!

More Views on News

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

ONGC to NMDC: Here are 5 Stocks Value Investors Should Closely Track (Views On News)

Nov 26, 2021

Before investing in value stocks, research the company and gain insight into why the market is discounting it.

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

Watch This Before You Buy NBFC Stocks (Fast Profits Daily)

Dec 3, 2021

My view on NBFC stocks.

Charlie Munger: This is "Even Crazier" than the Dotcom Era (Views On News)

Dec 3, 2021

Is the investing legend's pessimistic view on the stock markets justified?

More Views on News

Most Popular

Investing in Share Market

Looking for investing in share market A few things you must know about share market and different ways of investing in the s...

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Dec 3, 2021 (Close)

MARKET STATS