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How to start investing at the age of 20.


Such youngsters who is at his twenty years of age can start investing in the stock market soon. But many youngsters think that why so soon join the intricate world of the stock market. Most youngsters believe that either it will be too quick or they do not have much money to invest in the age of 20. However, both of these beliefs are wrong.
When you are at the age of 20, this is the best time to invest in the stock market. Why? Let's find out.

1. Stock Markets gives best return.

Do you know about this interesting fact, if your parents had invested Rs 10,000 in a company like Wipro or Infosys in 1990s, then in today's situation, that investment would be worth millions. Apart from these, other common stocks like Eicher Motor, Symphony, Page Industries, has given even better returns than Wipro and Infosys.

Historically, the stock market has given better returns than other investment options over the long term. If you also keep the amazing Shears with patience for a longer period of time (20 to 30 years), then you can also definitely get a good return, because you are giving extra time to your investment to mature .

2. You will not need immediate money.

When you are in your twenties, then you do not need to worry about other things like college fees, home loans, children etc. At this time of age, the burden of responsibility of children and wife is also not on you. When you start investing in the age of twenty, you do not even need to sell your shares quickly, you can easily start your investment and forget your money.

3. Good time to set future goal.

In every person's mind there is a certain goal for the future, such as becoming a millionaire at the age of 40, buying a big house, saving money till retirement. All these things can be obtained by starting early investment at the age of 20, to determine the fixed future goal and invest in order to achieve it systematically.

3. This age is appropriate for taking risks.

When you are in your 20 age, you can invest in shares taking with high risk. Instead of investing in blue chip companies, you can choose to invest in smallcap companies who have shows good growth potential in the past few years. However, the risk involved with smallcap companies is also higher compared to the blue chip companies, but the returns on investment are also high. Even if you incur some loss, you have so much time to learn from your mistakes, at this stage of your age, when you learn to handle the risk properly, your master skills will give you a better return.

It is always beneficial to start early investment, the world's most successful investor started his first investment at the age of 11. 

11 years of age will be a little early for investment in India. However, the age of 20 years is the best time to start the investment, because in this age  you have enough money even without any responsibility.

In the end, in the long run, there is a famous formula for making money in amazing ways.

—“Invest early, invest consistently and invest for the long term…” 

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