Why should one invest?
One needs to invest to: earn return on your idle resources generate a specified sum of money for a specific goal in life make a provision for an uncertain future
One needs to invest to: earn return on your idle resources generate a specified sum of money for a specific goal in life make a provision for an uncertain future
As soon as one starts investing it is better. Early investing allow the investable amount to grow with more time , and the benefit of compounding increases the return, by accumulating the principal and the interest or dividend earned on it, year after year. There are three important rules for all investors: Invest early Invest regularly Invest for long term and not short term
Before making any investment, one should consider the following points: 1. Obtain written documents explaining the investment 2. Read and understand such documents 3. Verify the legitimacy of the investment 4. Find out the costs and benefits associated with the investment 5. Assess the risk-return profile of the investment 6. Know the liquidity and safety aspects of the investment 7. Ascertain if it is
There are two options for investment: Physical assets like real estate, gold / jewellery, commodities etc. and/or Financial assets such as fixed deposits with banks, small saving instruments with post offices, insurance/ provident/pension fund etc. or securities market related instruments like shares, bonds, debentures etc.