Investing benefits with an early start.

The first few years of your earning life will have a huge impact on your future finances

Start investing early to get the benefit of compounding. Compounding means interest earned on interest and works like magic for your investments, because continuously reinvesting your earnings will increase your wealth exponentially over time.

Lets understand with an example:

Amit is 25 years old and Anand 30 years old. They both decide to start investing for retirement at age 60

Amit starts to invest Rs. 1000 per month for 35 years at a return of 12% per annum

While Anand who has 30 years left for retirementalso starts to invest Rs 1,000 per month at the same return rate

The corpus left with Amit at the end of 35 years will be Rs 64 lakhs and the corpus with Anand at the end of 30 years will be Rs 35 lakhs

This is what compounding does!

Additionally investing has several other benefits:

• Regular investment brings a discipline in your spending habits
• Investing early gives you a greater ability to take risksand the chance to recover losses
• You can afford a better lifestyle and quality of life
• Your investments will help fulfil your financial goals
• You retire with a comfortable financial cushion backing you up

So be wise, make the right choices and start investing.