“You should never be satisfied with a little if you are capable of using and enjoying more.”
Investment is allow money to grow. In simple term, keep money to work for you. Now we are earning money and always think about make money. But earning an income only by getting job and work. It is limited and we can’t work beyond some point. But there are ways to earn money, that is “Investments” . There are many different ways you can go about making an investment. This includes money into stocks, bonds, mutual funds, real estate, gold etc. The goal of investment is grow your money and earns an additional profit. This is a simple idea in personal finance.
Investment Goals:
“Investments creates Wealth”
All investments have only one goal, that is make you rich. There are plenty of investment options in India, such as stocks, bonds, mutual funds, real estate, gold. Each one of us should invest in at-least one of investment instrument to grow the money. Investment goal should like,
1). Money for retirement.
2). Money for Son’s higher education
3). Money for daughter’s marriage
4). Money to buy a sweet home
5). Money to buy a car
6). Money for world tour.
You need money for any of your goal. But make sure you have investment plan for each goal.
Investment Style:
Different options available for investments in india. Each one’s goal is different and their financial status is different. There is no common or one investment for all. But there are investment for everyone of us.
1). Stocks :
Investing in stock market is a best investment in India. But the problem is we have to spend more time to understand and follow in stock market. It is really simple if you are interested in stock market. It is hard for people who are full time employee or businessman to follow the market. Moreover if we want to investment not more than 50000 per month, it it overloaded information for us. It is best for people,
who want to invest more than 1 lakhs/month.
who can spend atleast 3 hours in a day for analysis of the stock.
who has enough emergency fund in their hand and ready to take risk.
2). Mutual Funds:
Investing in mutual fund is smart investment in India as it is monitored by fund managers. Mutual fund gives enough diversification and option to invest.
It is best for investors,
who want to invest 500 rupees to 1,00,000 rupees monthly
who work as professional and interest in investment as part-time earning.
who can spend less than 10 hours monthly in investment plan.
3). Real estate:
Real estate is most general investment option opted in india. But it requires lumpsum initially. It is good fit for investors,
who understand real estate market.
who can spend time to understand the real estate.
who has lump-sum in hand to invest.
4). Gold:
Most people thinks gold as best investment in India. They buy and save gold as investment. it is fit for investor,
who can invest atleast 25k at one shot to buy gold.
who is not averse on return.
it is not fit for investor who wants to invest 500 rupees monthly .
5). Business:
Investing in business and grow money in business is another smart option. But it requires dedicated effort and time to run the business.
In all above, look at your financial status and best investment for you. It looks like mutual funds look safe and better investment plan as it requires less number of hours effort and better returns. We will discuss more on mutual fund in next sections.
Investment is not an Gambling:
We are not sure where some people reads about investment and say investment is a gambling. It is stupid idea. Investment is an tool to grow money in legal and more structured way. Nothing about gambling.
Gambling is full of risk and driven by luck
Investment is full of opportunities and driven by financial knowledge.
The world of investment has full of earning as well as learning opportunities. Let us learn the financial investment to become financially affluent. A real and smart investor does not simply invest his or her money at any random investment; He performs thorough analysis and commits capital only when there is a reasonable expectation of profit.
Investment in financial knowledge gives best interest in the world.
Saving is not an investment:
Few people keep money in insurance, Pension fund and think it as investment. Saving is not investment. Saving is for different goals and investment for different goal altogether.
Saving earn just interest from bank.
Investment has potential for profit.
Insurance or pension fund are predetermined interest and returns. It all saving plans and return is low. Investment has potential(risk) for profit. Investment allow money to grow. Saving allows money to keep it safe. Differentiate your saving and investment,