Investment should be started at a young age, in fact, as early as possible as the older you grow your liabilities increases, resulting in less money left in hand for investments. Smart, disciplined and regular investments in diverse portfolio can yield good returns in the long-term.
A person however should be cautious and refer to investment websites or ask some financial experts to guide them where to invest for better and secured returns. Often young people don't invest as they fail to understand stock market or basic concepts such as the time value of money and the power of compounding.
You should start investing early as the sooner you begin, the more time your investments will have to grow.
Five good way to start building a portfolio is by investing in the 1) markets, 2) real estate, 3) fixed deposits in banks or post offices, 4) pension scheme and 5) gold for the basic investments to start with. Remember not to put all the eggs in one basket, so that if a particular investment fails to generate good returns another investment with high return can compensate for the loss.
Starting investments early is very important as the earlier a person starts there is more time for the investments to grow. For example: if you invest Rs 10,000 per month from the age of 25 and if this investment grows at 10% annually, till the age of 60, you will accumulate around Rs 46.20 lakhs. So, it is always better to start investing at an early age. With time even a small amount of investment can become a large corpus.
Investing in a systematic manner every month is important. First you should keep enough money for your monthly expenses, then have a systematic plan for investments in diversified portfolios to mitigate risks. Make sure that you put money into your investments on a regular and disciplined basis. This may not be possible if you lose your job, but once you find new employment, continue to put money into your portfolio. Regular investment from a young age can actually help you to accumulate a large amount while retiring.
Consider tax labilities and government rules for each investment as a large part of your gains may get deducted while you withdraw the money on maturity.