First of all, it’s never too early or too late for getting started with investing in the market. Your age, family need, personal needs, investible income, and personal risk factors should all be considered when determining what dollar amount you feel comfortable investing.
Several alternatives could be classified as best investment options, it is critical to chart out and identify what are the best investments to make in your 30s that will facilitate your future goals in life.
Here are some important points you should consider before investing-
Understand the basics
Before investing in any mutual fund scheme, the first step is to understand the basics of investing and make sure that you have an ‘investment goal’ in mind. Once you have decided on an investment goal, there is no mischief for investors starting early by investing even small amounts in mutual funds. This can be done via a Systematic investment plan (SIP)
Start with SIPs
Small investments which have been made over some time will give better returns than large investments made just one time. Hence, if you do not have high savings, then I would suggest that you start with systematic investment plans (SIP) which allow small specified sums to be invested regularly. Some people may argue over the fact that small investments done at one time will give better returns than small investments done over some time.
Don’t run after returns, chase value
Generating 15% consistent returns is better than generating 50% returns in the first year followed by a loss of 5% in the second year. Choose a that invests in fundamentally strong companies whose returns are consistent and not very volatile.
Being in the 30s, you have a long investment horizon and can afford to be an aggressive risk seeker. Going for equity-oriented funds can deliver high returns over some time. Market volatility burns less when you invest for the long term. Diversity is a strength and having a mix of equity and debt funds can work well.