Market levels are not in our hands, it may take weeks for the benchmark to correct or it may correct within days.<\/p>\n\n\n\n
If money is sitting in a bank account waiting to be invested, it is usually either spent on consumption or invested in some other ” immediate opportunity” without proper analysis of return over investment.<\/h6>\n\n\n\n
The problem with the first way is that you are not creating wealth, with the second way the investment opportunity may or may not fit into your overall portfolio objective. Usually, the reason for going with a different investment is because of return, without a thorough analysis of the risks involved.<\/p>\n\n\n\n
It is our need for immediate return that drives us to the best return option, rather than waiting for the opportunity we seek.<\/p>\n\n\n\n Let’s say you invest money immediately but in a staggered manner through planned systematic monthly investments and your investment horizon is 20 years. Rs 25,000 invested every month at 12% per annum for 20 years will make you an easy Rs 2.1-2.5 crores at the end. If you delay this start by 10 years, you will have to spend more than Rs 1,00,000 per month to build the same corpus in the remaining 10 years!<\/p>\n\n\n\n If you delay the investment for 1 year, you still have to pay out about 16% more each month to achieve the same result in 19 years. Delaying investing in equity mutual funds will cost you more in the long run than accumulating greater benefits from waiting for a correction.<\/p>\n\n\n\n Apart from a cost-benefit analysis, it is practically impossible to assess with consistent accuracy how the market will behave in the short term.<\/p>\n\n\n\n It is much easier to analyze performance over longer periods such as five and ten years. Investing in equity mutual funds of a growing economy will produce proportionate returns over time.<\/p>\n\n\n\n The cost of keeping money in a bank account is much higher than investing now and catching the wrong end of a correction. If you invest patiently and regularly, over time the results will speak for themselves.<\/p>\n\n\n\n![\"\"](\"https:\/\/kashly.in\/read\/wp-content\/uploads\/2022\/08\/Delay-your-investment-1024x683.jpg\")
<\/figure>\n\n\n\n2. Later versus now is an expensive proposition<\/strong><\/h2>\n\n\n\n
You have to invest 4x more for the same result if you postpone your investment for 10 years.<\/h6>\n\n\n\n
3. It\u2019s impossible to know what will happen <\/strong><\/h2>\n\n\n\n