Money9 Helpline | Importance of starting early investments

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Investing money successfully and efficiently is very important for a secure present as well as future. The sooner the investments start the better are the chances to gain higher returns. Money9 Helpline hosted Sebi registered investment advisor Amit Kukreja, to resolve queries on how to start investments early and plan them efficiently. Edited excerpts.

Sagnik Sircar, South Kolkata: I am a college student and want to start investing in mutual funds. I cannot spare more than Rs 1,000 per month. What is the amount I can start my investment with?

Kukreja: Yes, Rs 1,000 is an absolutely good amount to start with. Investing Rs 1,000 at 12% for 25  years will help you generate Rs 19 lakh. This is the power of compounding. The money will double every six-year. And after 25 years even if you are not investing, the wealth will keep on growing. You can start small in equities. You can choose an index or large-cap fund and diversify your portfolio.

Harishbhai Tank, Amreli, Gujarat: My son is in his MBA final year. I want that he should start investing in PPF as soon as he secures a job. But he wants to invest in mutual funds. Please guide

Kukreja: I think you should allow your son to invest in mutual funds. Let him be independent and make his own decisions. This is the time you should empower him. Let him learn from his experience and grow.