Early Stage Investing
Starting early with investing helps investors make the most of time and compounding. Early stage investing focuses on beginning an investment journey when financial goals are still long-term and flexibility is high. It is commonly associated with growth-oriented investment options designed for longer holding periods.
Types of Early Stage Investing
Long-Term Focus
Investments are usually made with goals that are many years away, allowing time to manage market ups and downs.
Power of Compounding
Starting early allows returns to be reinvested, which can help the investment value grow over time.
Flexibility in Investment Amounts
Investors can begin with relatively smaller amounts and increase investments gradually as income grows.
Perpetual SIP
A SIP without a defined end date; it continues until manually stopped.
Trigger SIP
Enables investment based on a selected condition set by the investor, such as a date or amount preference.
Why Invest in Early Stage Investing
Equity-Oriented Funds
These funds primarily invest in shares of companies. They are generally chosen for long-term growth potential and are suitable for investors who can stay invested for several years.
Hybrid Funds
Hybrid funds invest in a mix of equity and debt instruments. They aim to balance growth and stability, making them suitable for those who prefer moderated market exposure.
Index Funds
Index funds track a specific market index and invest in the same proportion as the index. They offer market-linked returns with a simple and transparent structure.
Systematic Investment Plans (SIPs)
SIPs allow investors to invest a fixed amount at regular intervals. This approach helps in spreading investments over time and building discipline.
Option to Pause or Modify
Most SIPs offer the ability to pause or modify contributions based on personal convenience.
