I am 22 years old and I have just started working as an event organiser. I live in Chandigarh and I earn ₹40,000 per month. I have always read that it’s better to start investing at an early age. Where should I invest? Which mutual should I choose to start with? My risk appetite is moderate. I do not have any goals as such for now. I just want to save to create the maximum wealth.
By Raghvendra Nath, MD, Ladderup Wealth Management
I can say that you have taken the right decision to invest at an early age as investing early will allow to develop a disciplined spending habit and you will have time which is one of the scarcest resource in today’s world. Investing this early will make you compound your money and help you accumulate sufficient wealth.
Given your age, the best investment options are equities. Over the short term, equity investments tend to be volatile in nature however, if you have time on your side and your investment horizon is long, in that case they are the most beautiful instruments to capture growth.
The best way to capture this upside in equity is through equity-oriented mutual funds. Mutual funds are managed by the best minds in the industry and are the most liquid and transparent instruments. Mutual funds come in various categories however taking your risk appetite into consideration, you can invest 70% of investments in large cap equity mutual funds and rest 30% in the midcap mutual funds, and this will help you in achieving your goal of maximising your wealth.