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

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.


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? ›

When it comes to retirement, the recommendation is to start as early as possible, even if it's with small amounts, and aim to save around 10% to 15% of your income. For non-retirement investments, ensure you're in a stable financial position and ready to handle the inherent risks of investing.

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.

How should an 18 year old start investing? ›

Once you're ready to start investing, it's time to open and fund a brokerage account. Anyone at least 18 years old can open an online brokerage account. People who are younger than that will need a parent's assistance. Parents can either open a brokerage account on their teen's behalf or set up a custodial account.

Is 30 too late to start a 401k? ›

It is never too late to start saving money you will use in retirement. However, the older you get, the more constraints, like wanting to retire, or required minimum distributions (RMDs), will limit your options. The good news is, many people have much more time than they think.

How much money should a 25 year old have? ›

By age 25, you should aim to have an emergency fund of 3-6 months of living expenses, and start regularly contributing to retirement savings to take advantage of compound interest over time, even if it's just small amounts.

Is $100 good to start investing? ›

Investing your $100 can be pivotal in generating passive income, preparing for financial uncertainties, and achieving long-term goals. The magic of compound interest implies that even modest sums can snowball over time.

How much realistically do I need to start investing? ›

“Ideally, you'll invest somewhere around 15%–25% of your post-tax income,” says Mark Henry, founder and CEO at Alloy Wealth Management. “If you need to start smaller and work your way up to that goal, that's fine. The important part is that you actually start.”

How much should I invest as a beginner? ›

How much you should invest depends on your financial situation, investment goal and when you need to reach it. One common investment goal is retirement. As a general rule of thumb, you want to aim to invest a total of 10% to 15% of your income each year for retirement.

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 money do I need to generate $2000 a month? ›

Earning $2,000 in monthly passive income sounds unbelievable but is achievable through dividend investing. However, the investment amount required to produce the desired income is considerable. To make $2,000 in dividend income, the investment amount and rate of return must be $400,000 and 6%, respectively.

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

What should a 22 year old invest in? ›

For your long-term goals, stocks are considered one of the best investment options. You can buy stocks through ETFs or mutual funds, but you can also pick individual companies to invest in. You'll want to thoroughly research any stock before investing and be sure to diversify your holdings.

Can an 18 year old open a Roth IRA? ›

How old do you have to be to open a Roth IRA? There is no age requirement to open a Roth IRA. To contribute, you must have earned income in the year you wish to contribute.

What age do most start investing? ›

Beginner investor demographics
AgePercentage of first-time investors
1 more row
Feb 6, 2023

Should a 14 year old start investing? ›

There are many reasons why teens should invest. The most significant advantage is the time they have to allow their investments to grow and increase in value. Sometimes it might seem confusing where to begin, but it does not have to be.

Is 20 too late to start investing? ›

Your 20s can be a great time to take on investment risk because you have a long time to make up for losses. Focusing on riskier assets, such as stocks, for long-term goals will likely make a lot of sense when you're in a position to start early.

Is 27 too old to invest? ›

While investing when you are younger gives you an advantage, it is never too late to get started. Those over 50 can utilize catch-up contributions for their retirement accounts.

How much money should a 15 year old have? ›

Average allowance for kids and teens in 2023
13 years old$13.01
14 years old$14.96
15 years old$17.09
16 years old$20.54
11 more rows
Jun 27, 2023


Top Articles
Latest Posts
Article information

Author: Kimberely Baumbach CPA

Last Updated:

Views: 5427

Rating: 4 / 5 (61 voted)

Reviews: 84% of readers found this page helpful

Author information

Name: Kimberely Baumbach CPA

Birthday: 1996-01-14

Address: 8381 Boyce Course, Imeldachester, ND 74681

Phone: +3571286597580

Job: Product Banking Analyst

Hobby: Cosplaying, Inline skating, Amateur radio, Baton twirling, Mountaineering, Flying, Archery

Introduction: My name is Kimberely Baumbach CPA, I am a gorgeous, bright, charming, encouraging, zealous, lively, good person who loves writing and wants to share my knowledge and understanding with you.