I want to invest Rs. 15,000 SIP monthly in a small cap for 30 years to become wealthy. I’m 18 now. Is it a good plan?

It is a good thing that you are starting your journey early

Congratulations!! 🥳 🥳🥳

Now, coming to the second part

Investing is meant to done by managing risk.

Smallcaps tend to be illiquid and volatile.

If you look into 2014–2019 window, smallcaps have not performed at all. This story may seem far fetched considering the 2020–2024 window.

To avoid such situations, it is better to diversify your investment into baskets that will aid

  • Growth
  • Capital preservation
  • Power of Compounding

Taking this into account, it is better to invest into a 3–4 Mutual Funds that cover all aspects of the market so that you get balanced growth with loosing out on generating returns.

The remaining funds can include – Large Cap Midcap, Flexicap and Index Fund

Hope this helps

You can also read earlier posts:

I am 46 years old. I want to invest 25 lakhs for my retirement. What should I do?

Is Investing through Registered Investment Advisor or Mutual Fund Distributor a good idea?

Finance – Lateral Thinking

All the best

Happy Investing and God Bless!

About the Post Author:

The Author is an AMFI registered Mutual Fund Distributor (ARN-262589). Reach out to him via email: edteficonsult@gmail.com

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