10 Investing Mantras for Youngsters

1. 10 Investing Mantras for Youngsters – Ajmera x-change

2. Millennial make for almost half of our working population while two-third individuals are less than 35 years old • Greater awareness about investing in mutual funds and good stock market advice is essential for this section of the society • Actively participating in stock markets and mutual funds should be high on the agenda of youngsters when it comes to managing and growing wealth

3. Basics of Investing Process • It makes sense to learn the basics of the investing process at the early phase of your working life because it helps in minimizing errors and leads to the much needed clarity of thoughts over a period of time • One needs to get acquainted with concepts like time value of money, various investing avenues and the relationship between risks and returns • As a young person with plenty of working life ahead, one has to take a stock of career goals and the long term life goals as well • This will make it easier for you to plan your investing journey. Get hold of a good investment advisor as early as possible.

4. Think About Future Expenses • Please be aware that your future expenses would be on the rise as time goes by. • This is because the time value of money would be on a decline because of inflation. • In an emerging economy like India, moderate inflation would always ensure that prices rise across all spectrums over a period of time. • Investing in stock market or mutual funds will help you save money to protect you from the inflation

5. Consider Family Circumstances • This is a critical and often sidelined area when it comes to personal finance by the millennial. • Think about increasing family responsibilities and also keep in mind rising medical costs in the future. • This becomes much more important when it comes to decisions like buying a house. • Streamlining your investments after giving the much needed thought to your family needs and expectations would help you in finalizing the ideal plan for your finances.  

6. Use Mutual Funds to Your Advantage • A mutual fund (MF) is a fund of funds i.e. your money is combined with the money from other investors, and allows you to buy part of a pool of investments. • A mutual fund makes it easier for investors to diversify than through ownership of individual stocks or bonds. • You can make mutual fund investment in a significant manner when it comes to investing for a particular goal.

7. Learn to Invest in Yourself • When you are young and just starting your career, there are plenty of ways through which you can gear up for further growth in life. • Keep striving for excellence in all walks of life and keep on investing yourself by learning new skills and understanding technologies that can help you progress in an efficient manner. 

8. Systematic Investment Planning • Systematic investment planning or SIP is a widely used option by investors now as it helps in reducing volatility. • SIP is a financial planning tool that helps you to create wealth, by investing small sums of money every month, over a period of time. • Investing at an early stage of life lets you enjoy the benefits of cost averaging and compounding over a period of time.

9. Thank you