By Irshad Mushtaq
Saving money early and investing wisely can work wonders, especially in the stock market through ETFs, shares, and mutual funds. The secret is the power of compounding. Here’s how it works:
*The Power of Time:* Compounding grows your money over time. Starting to save and invest young provides more time for your earnings to multiply. It’s not about having a high salary but forming good saving and investment habits early that builds wealth.
Growth of the Indian Economy: The economy is growing by 5-6% annually, with inflation around 5-7%. This means a double-digit growth potential. Historically, the Nifty index has provided approximately 14% annual growth over 30 years. But many miss out because they get caught in immediate market fluctuations, leading to fear and impulsive decisions.
*Long-Term Focus:* Instead of focusing on daily market changes, invest in quality ETFs, shares, and mutual funds. Increase your SIPs (Systematic Investment Plans) regularly. It’s a logical approach to aim for growth over the next decade.
*Building the Right Mindset:* Understanding the basics of investing builds confidence and makes taking action easier. Learn to embrace market volatility as it’s a normal part of the stock market. Mutual funds are a safe, systematic way to invest, as they spread your money across various companies, reducing risk.
*Diversified Investments:* Mutual funds are diversified portfolios, minimizing risks by investing in multiple companies. Backed by expert advisors, they build robust portfolios designed to perform well over time.
In summary, whether or not the market is volatile, saving and investing regularly in quality funds and shares can lead to consistent growth. It’s all about starting young and letting the power of compounding work its miracle over the long haul. By cultivating good saving habits and focusing on long-term growth, you can effectively build wealth over time.
- Learn from the insights of @Irshad Mushtaq, Writer, Investor, Entrepreneur & Founder of M I Securities! Connect for valuable financial advice at [email protected]
Follow this link to join our WhatsApp group: Join Now
Be Part of Quality Journalism |
Quality journalism takes a lot of time, money and hard work to produce and despite all the hardships we still do it. Our reporters and editors are working overtime in Kashmir and beyond to cover what you care about, break big stories, and expose injustices that can change lives. Today more people are reading Kashmir Observer than ever, but only a handful are paying while advertising revenues are falling fast. |
| ACT NOW |
| MONTHLY | Rs 100 |  |
| YEARLY | Rs 1000 | |
| LIFETIME | Rs 10000 | |
