Millennials Should Invest In Mutual Funds Early In Life

It is always better to start your investments in ELSSs at the beginning of the financial year, preferably through a SIP 

Mutual fund advisors are getting in touch with young investors or millennials to finalise their tax—saving investments in the beginning of the financial year. According to mutual fund advisors, they are discussing tax-saving processes with youngsters who have started earning very recently. 

Mutual fund advisors and financial planners typically ask young investors to consider investing in tax-saving mutual fund schemes to save taxes for two reasons. One, young people can afford to take risk. This is because even if there is a setback, they can easily make up for it as they have a very long investment horizon. Two, a small amount invested regularly may help them to create a sizeable corpus because of the impact of compounding. 

These experts also believe that it is always better to start your investments in ELSSs at the beginning of the financial year, preferably through a Systematic Investment Plan (SIP). Apart from imparting financial discipline, it would also help them to amass more units in volatile market and create more wealth over a long period. 

Mutual fund advisors are also trying out novel methods to reach out to the millennials. Apart from the age-old mails and notes, some advisors are reaching out to the millennial in the video format. They are sending short video clips over mail as communication to their clients. In this way they are reaching out to the young investors who do not prefer to read and research about the benefits of starting the tax-saving process early.