Most of my readers will agree that they know they can start investing in mutual funds as low as ₹500 to ₹1,000 per month. The problem is no one starts investing with as low as ₹500 or ₹1000 per month.
The plan to start investing begins only when one sees a considerable amount of money lying idle in one’s bank account and something needs to be done.
We believe we need a lot of money to start investing. I also thought of the same. We can’t visualize the concept of compounding and calculate the returns only based on what we invest.
Only with ₹1,000 invested per month for 33 years at an annual growth rate of 15%, you have a corpus of ₹1.1 Crore. But in the 30th year of investment, it is only ₹70Lakhs, and in the 28th year, it is not even 52Lakhs. So the big chunk of absolute money is made in the last 3 to 5 years—almost 10L per year.
It isn’t essential to start heavy with a truckload of money, but it is crucial to start early.