When is the right time to start investing? (2024)

I am 25 and have just started working. I am yet to start my investing journey. Should I wait for the equity markets to correct or should I start systematic investment plans (SIPs) in mutual funds?

—Name withheld on request

There is no better time to start investing. It is very difficult to time the markets and although the markets are due for a correction, it would not be wise to wait further. Also, when it comes to SIPs, there is not much merit in timing the markets.

We would suggest you invest in different mutual fund categories. Large-cap funds, flexi cap funds, multi-cap funds (40-60% of corpus); mid-cap funds (15-30%); and small-cap funds (10-20%).

For large-cap funds, we would suggest you invest in index funds as the outperformance of actively managed large-cap funds has come down substantially. For mid- and small-cap funds, we would suggest you to diversify between 2-3 funds to reduce the dependence on the performance of a single fund manager.

We also advise you to maintain an emergency corpus equivalent to 6 months of your salary/ income. This fund can be kept in Liquid or ultra short mutual funds. If you haven’t already, consider taking medical and life insurance to provide financial protection to your family in case of unfortunate events.

Should I add silver ETFs to my portfolio? What kind of diversification does it offer?

—Name withheld on request

Gold and silver are both precious metals and have very low correlation to other asset classes like equities and debt. Silver has higher industrial demand whereas gold is used in jewellery and for investments. Both, these metals are considered to be good hedges against inflation.

Accordingly, we suggest an investor to have 5-10% investment in precious metals. We suggest investments in gold due to various factors like liquidity, high demand, demand by central banks.

For investment in gold, consider investing through sovereign gold bonds (SGBs) rather than the ETF (exchange traded funds) or the physical route. SGBs offer an interest of 2.5% per annum in addition to the capital appreciation on gold. Additionally, the capital gains are exempt from tax if held till maturity.

Vijay Kuppa is chief executive officer of InCred Money

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Published: 08 Jan 2024, 10:54 PM IST

When is the right time to start investing? (2024)


When is the right time to start investing? ›

Don't delay. Starting early is crucial in investing, even if you can't invest a lot at first. In a market that has generally gone up more than it's gone down over the years, it's ideal to invest as early as possible. In the long run, your resilience as an investor could matter more than the day you buy your first stock ...

What is a good age to start investing? ›

If you put off investing in your 20s due to paying off student loans or the fits and starts of establishing your career, your 30s are when you need to start putting money away. You're still young enough to reap the rewards of compound interest, but old enough to be investing 10% to 15% of your income.

When should I begin investing? ›

It is important to start investing early and consistently to take full advantage of compounding and to use tax-advantaged tools such as 401(k)s, 403(b)s, and IRAs to further your goals. Ignore short-term highs and lows in both the overall market and your individual investments and stay focused on the long-term.

How much money do I need to invest to make $1000 a month? ›

A stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income, Mircea Iosif wrote on Medium. “For example, at a 4% dividend yield, you would need a portfolio worth $300,000.

What is the right time to invest? ›

The Most Favourable Conditions

The best time to buy stocks is when the share prices of a given stock are at a low. There is always a chance that they will drop even further, but buying at a low price is significantly safer than buying at a high price where the price of the stock is unlikely to climb much higher.

Is 25 too late to invest? ›

Starting early is a major advantage.

In your 20s, and even your 30s, your biggest asset is time. Even when you're just investing in retirement savings, nothing can make up for the effect of compound interest. Also, if you lose money in the market, you'll have more time to make it back before you need it.

Is 40 too late to invest? ›

It's never too late to get started. The good news for investors in their 40s is that while your time horizon may be shrinking, there's still plenty of time to make up lost ground if you're an investing late bloomer.

Is $100 enough to start investing? ›

Investing can change your life for the better. But many people mistakenly think that unless they have thousands of dollars lying around, there's no good place to put their money. The good news is that's simply not the case. You can start investing with $100 or even less.

How much realistically do I need to start investing? ›

How much should you be investing? Some experts recommend at least 15% of your income. Setting clear investment goals can help you determine if you're investing the right amount.

What age is too late to start investing? ›

It's never too late to start investing and managing your money. But I don't want to sugarcoat it. If you're planning to invest for retirement, getting the ball rolling in your late 60s certainly limits your options.

How to make $2500 a month in passive income? ›

Invest in Dividend Stocks

One of the easiest passive income strategies is dividend investing. By purchasing stocks that pay regular dividends, you can earn $2,500 per month in dividend income. Here's a realistic example: Invest $300,000 into a diversified portfolio of dividend stocks.

How much will I have if I invest $500 a month for 10 years? ›

What happens when you invest $500 a month
Rate of return10 years30 years
Nov 15, 2023

How can I make 1k extra a month? ›

Fortunately, there are plenty of realistic and achievable ways to make an extra $1000 per month without sacrificing your current job.
  1. Freelancing. ...
  2. 2.1 Online Tutoring. ...
  3. 2.2 Writing and Editing. ...
  4. 2.3 Graphic Designing. ...
  5. Ridesharing. ...
  6. 3.1 Uber. ...
  7. 3.2 Lyft. ...
  8. 3.3 DoorDash.
Nov 11, 2023

What is the best month to invest money? ›

Historically, April, October, and November have been the best months to buy stocks, while September has shown the worst performance. Knowing when to hold or sell stocks depends on personal strategies, research, and confidence in the stock's potential for growth.

Is it a good time to invest in 2024? ›

As a whole, analysts are optimistic about the outlook for stock prices in 2024. The consensus analyst price target for the S&P 500 is 5,090, suggesting roughly 8.5% upside from current levels.

How to begin investing money? ›

How to start investing: 6 things to do
  1. Look into retirement accounts. ...
  2. Use investment funds to reduce risk. ...
  3. Understand your investment options. ...
  4. Balance long-term and short-term investments. ...
  5. Don't fall for easy mistakes. ...
  6. Keep learning and saving.
Jan 3, 2024

Is 20 too late to start investing? ›

Investing in your 20s can have such an outsized impact because you're investing over a very long time, allowing you to capitalize on all that growth and compound interest. Bonds can be generally lower-risk, lower-return investments that can counter the risk of stocks.

Is 18 too late to start investing? ›

No matter your age, there is never a wrong time to start investing. Let's take a look at three hypothetical examples below.

Should a 20 year old invest? ›

Getting a head start on investing can really pay off, too. Money invested in your 20s cancould compound for decades, making it a great time to invest for long-term goals.

Is 21 too late to start investing? ›

It's never too late to start investing, but that doesn't mean you'll have the same investment strategy as your 22 year-old niece.

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