Investing Guide #17: Why You Should Start Investing in Your 20s

 

Start Early, Retire Rich: The Power of Investing in Your 20s

If there’s one thing every successful investor says — it’s “I wish I started earlier.”

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1. The Magic of Compounding

If you invest ₹5,000/month from age 22 at 12% return, you’ll have over ₹3 crore by age 50.
If you start at 32 instead, that amount reduces by more than half.

Starting early gives your money more time to grow — not more risk.

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2. Build Habits, Not Just Wealth

Investing early builds:

• Discipline
• Risk tolerance
• Long-term vision

These habits are more valuable than returns alone.

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3. Where Should You Start?

• SIP in equity mutual funds
• Index funds like Nifty 50
• Recurring deposits if you're very risk-averse
• Start with small amounts — ₹500 to ₹1,000/month

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4. Common Myths Busted

• "I don't earn enough" → Start small, consistency is key
• "It's risky" → Learn and diversify
• "I'll invest later" → Later means costlier

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Conclusion

Time is your greatest asset in your 20s. Invest early — even small — and let time multiply your money.

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