Parents and elder relatives constantly pester Millennials to save more. However, taking out money for investments is not easy when societal criticism and peer pressure trap you to spend more than you save for tomorrow. But, this is the ideal age to start planning for finances and, therefore, investing more diligently. When talking about investments, mutual funds are definitely the best option even for beginners. Mutual funds offer an opportunity for a diversified portfolio, liquidity and low costs.
Whether one wants to save for a short-term or a long-term goal, mutual funds can accomplish both. With the comfort of investment one can start with a tiny amount also. However, how to get the best returns is a big question for millennials. Millennial investors can follow the following strategies to make the most of their investment.
1. Why choose Mutual Funds?
The time is right for accumulating more to your investment portfolio. Some investment selections are safe and have a potential to give good returns in the future. Mutual fund invests in firms with better track records with the objective to provide capital appreciation in long run. The high return vs. high risk strategy could be suitable for millennial/young investors.
2. Keep Investing when the Market Appears Hard
Keep your Systematic Investment Plans (SIPs) running and do not worry about the functioning part of mutual funds. Mutual funds are one of the finest investment choices one can make regardless of market conditions. Redeeming your investments due to huge market volatility is not a good decision as continuing SIPs will help you balance your average cost of investments and will reap you benefits of averaging over a long term duration. So, keep investing even if the market corrects and top up your investment in SIPs.
3. Stay Safe from Redemption Burden
There have been several market falls in the past but there is always a recovery post the fall. So, it is of significant importance to keep emotions aside and stay calm and not redeem your investments in fear and anxiety. It is also essential not to go overboard with investing. Ups and downs of the market are part of the investment journey and as an investor, you must refrain from panic actions.
4. Review Periodically
Ensure that you take the periodic review of your portfolio and your financial goals to alter your portfolio according to changes in the market, risk appetite, your age and goals. When the market is volatile, you may need to alter your investments based on your risk appetite and market conditions. This keeps your funds active as per the current market circumstances which adds to a decent return to your overall portfolio throughout the entire investment tenure.
5. Diversify Your Investment
A diversified portfolio holding multiple asset classes is the best way to make optimum risk-adjusted returns from various asset classes. Although it is true that asset allocation and funds selection depends entirely on investment horizon, financial goals, and risk appetite; it is also essential to avoid investing in several funds as it might not be possible to track their performances.
The best investment advice for millennials is to start investing in mutual funds and enjoy the benefits of long term investing and compounding.
Views are personal: The author Pankaj Ladha is a mutual fund distributor from Kota.
Disclaimer: The views expressed are of the author and are personal. TAMPL may or may not subscribe to the same. The views expressed in this article are in no way trying to predict the markets or to time them. The views expressed are for information purpose only and do not construe to be any investment, legal or taxation advice. Any action taken by you on the basis of the information contained herein is your responsibility alone and Tata Asset Management Pvt. Ltd. will not be liable in any manner for the consequences of such action taken by you.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
