1. Nowadays, young earners are much more smarter than their elders, by actually going ahead and implementing very long-term online SIPs in equity mutual funds as their primary saving vehicle.
2. A classic example is of a young earner, who started it at the age of 25, out of net surplus money from his first salary itself, and plans to continue doing so till 65 years of age.
3. The main reason for starting early is convenient equity exposure platform through online MFs at an early age, which was missing earlier.
4. These young earners continue the SIPs to meet their identified lifestyle goals, which are very different from their elders, as well as to meet their kids' higher education costs which are galloping at a very high inflation level, much more than even when they graduated, and also for their higher spending aims during their retirement life.
5. As their SIP investment period is very long, they are able to opt for an "aggressive" combo of ELSS-Multicap-Midcap funds (as it becomes "loss-free" after 10+ years), from which they would switch to a "moderate" one of Hybrid MFs after 30-35 years, while just focusing on their career ladder till then, and letting MFs multiply their systematic savings through various market cycles, with biannual reviews without frequent churning.
6. Just 1,000 monthly SIP for 40 years in such combo MFs will become:
1.2 cr, 1.6 cr, 2.2 cr, 3.1 cr, 4.3 cr & 6 cr at CAGR of 12%, 13%, 14%, 15%, 16% & 17%.
7. They keep increasing their SIPs annually in multiples of 1000, and withdraw only when their goals arrive, including lifestyle ones.
8. Their debt allocation is taken care of by EPF through employers - some have NPS through them too - and don't even think of gold or fixed income instruments as growth-oriented investment products - with 6-8 months' emergency fund in their bank's sweep-in flexi-deposits.
9. For their "fearless" investment journey, they have adequate online term plan and family floater health insurance in place.
10. Actually, these "digital age" young earners really utilize online investment and insurance facilities very well for their long-term goals and needs.
2. A classic example is of a young earner, who started it at the age of 25, out of net surplus money from his first salary itself, and plans to continue doing so till 65 years of age.
3. The main reason for starting early is convenient equity exposure platform through online MFs at an early age, which was missing earlier.
4. These young earners continue the SIPs to meet their identified lifestyle goals, which are very different from their elders, as well as to meet their kids' higher education costs which are galloping at a very high inflation level, much more than even when they graduated, and also for their higher spending aims during their retirement life.
5. As their SIP investment period is very long, they are able to opt for an "aggressive" combo of ELSS-Multicap-Midcap funds (as it becomes "loss-free" after 10+ years), from which they would switch to a "moderate" one of Hybrid MFs after 30-35 years, while just focusing on their career ladder till then, and letting MFs multiply their systematic savings through various market cycles, with biannual reviews without frequent churning.
6. Just 1,000 monthly SIP for 40 years in such combo MFs will become:
1.2 cr, 1.6 cr, 2.2 cr, 3.1 cr, 4.3 cr & 6 cr at CAGR of 12%, 13%, 14%, 15%, 16% & 17%.
7. They keep increasing their SIPs annually in multiples of 1000, and withdraw only when their goals arrive, including lifestyle ones.
8. Their debt allocation is taken care of by EPF through employers - some have NPS through them too - and don't even think of gold or fixed income instruments as growth-oriented investment products - with 6-8 months' emergency fund in their bank's sweep-in flexi-deposits.
9. For their "fearless" investment journey, they have adequate online term plan and family floater health insurance in place.
10. Actually, these "digital age" young earners really utilize online investment and insurance facilities very well for their long-term goals and needs.