Investment Options for Young Investors
Why Invest at young age?
Securing your financial future for retirement isn’t something that magically happens—it’s all about planning, sticking to your goals, and, of course, having the funds to make it happen!
Wealth management and financial planning at a young age works best when you have the right financial advisor by your side. Even a small, regular investment can grow big.
The best part? You don’t have to give up the fun you’re having right now. To find the best investment options for young investors, you just need some discipline and a little amount of help from investment experts.
How can we help
Expert financial investment options for young investors with the right risk-return balance
Being younger than middle-aged and senior individuals allows you to have more freedom to explore different options in order to find the right balance between risk and return that aligns with your objectives.
Leverage financial planning to build wealth in the long-term
Three factors that favour your age group
Discipline building
Setting Your Personal Finance goals early Shapes the required discipline you need for wealth generation.
Compounding growth
By starting to invest while you’re in your 20’s, You enjoy the tremendous power of compounding.
Asset diversity
While investing young, you can invest in a wider variety of assets class and stand to earn better returns.
The steps to your dreams as a young investor
Fortunately, preparing for the future doesn’t mean giving up every comfort you enjoy today. As an young investor, here are the five steps you need to follow, no matter what your funds inflow or current investment status.
List out
Identify your visible liabilities and goals over the next 20 years. That dream car, that yearly vacation & include all of them.
Extrapolate
Try and come up with reasonable estimates of your future incomes over the same time.
Define
Choose the age by which you’d like to retire and enjoy everything at your own pace.
Evaluate
Assess the current investment options available to you and weigh their pros and cons.
Take action
Grow discipline, cultivate patience and begin early investing. Once that’s done, you can sit back and relax.
For most of us, however, the above steps are complex and overwhelming.
Which is where FinVoyage’s expertise comes in.
Book a free consultation now
Frequently asked questions
First, create an emergency fund. In case your regular income gets negatively disrupted, your emergency fund will help you sail through the temporary rough patch. Also, pay off all your liabilities without delay. For example, if you have an educational loan outstanding, pay it off first. Next, get an adequate life and health insurance cover. Finally, begin to save and invest for your short-term and long-term goals. A luxury car or a beautiful house is easier to buy when your finances are sorted.
You need to understand the difference between high-risk investments and blind risks that are like gambles. Avoid getting into areas that you don’t understand fully, aren’t adequately regulated, or something that your mutual fund distributor or investment advisor recommends you against.
Equity mutual funds are a great investment options for young investors at the moment. It allows you to embrace all the risks you should get into.. It allows you to embrace all the risks you should get into.
We firmly believe that when it comes to building wealth, two factors matter the most at your age. One, you should be able keep your greed and fear in check. Playing too safe brings you poor returns, while going overboard with risky investments can make you lose all your money.
Two, you need to understand your risk appetite as well as your goals, and begin developing the right discipline for investment. Remember, invest early, invest right, and invest regularly.
Focus on balancing instant versus delayed gratification, and you can enjoy prosperity all your life.
First, buy a term plan for life risk cover. Remember to have a cover that’s at least 10 times your annual post-tax income. If your organization doesn’t provide you health insurance, buy one. After that, you need to create a contingency fund that’d cover 6 to 12 months of your liabilities and expenses. Finally, invest the balance in equity or hybrid funds that your mutual fund distributor or advisor suggests.
Remember, the above is only a generic suggestion, so we strongly recommend speaking to your competent, trusted mutual fund distributor or advisor before taking a decision.
Today. The best day to begin is always today. The earlier you begin investing and building wealth, the bigger your corpus will become in future. Check out the following table that shows you why investing early matters.
| Investment started at age | Monthly investment | Invest upto the age of 60 | Wealth created at the age of 60 * |
|---|---|---|---|
| 25 | 10,000 | 60 | 425 Lacs |
| 35 | 10,000 | 60 | 150 Lacs |
* For the calculation purpose, we have taken annual return to be 11%.
Client’s speak
In investment, starting early is important, but starting in the right direction is even more important. And FinVoyage has given me that right direction.
Investing is easy, but taking the decisions that have a high probability of being in your favor and backing it with logical reasoning is tough and this is where FinVoyage's expertise lies.
Discussions before starting the investing journey, has given me the 360o view of investing universe and has prepared me to be ready for the volatile market, stay focused and disciplined.
As I was new to the investing world, there were so many questions regarding Wealth Creation, Mutual Funds, Insurance, Tax Savings etc... After a couple of rounds of discussion with the team at FinVoyage, I got clarity on various aspects of investment, mapped my investments with my financial goals and now I can say with confidence that I have started my journey towards financial independence.