Investment – A way to plan your Future
Investment is a process by which the money now, after purchasing an asset, which becomes profitable in long term future. Asset is a general word used and it does not mean property alone. The reason one should invest is not because it adds to your present income but also it provides a source of income when you are not in a position to work anymore because of retirement or unnatural causes like accidents etc.
There are many ways of investing your money you have earned. They are real estate, gold, Stock Market, Forex trading, Mutual Fund, Fixed Deposits etc. We shall examine a few and see what it has to offer.
When it comes to the safety aspect, what would come to most people is Real Estate. Real estate is one area which always shows appreciation over a period. As the population grows there is always need for houses for people to live and hence real estate is a safe option, more so in developing countries.
Second option is Gold. It, like real estate, offers maximum return with more safety of the money. You just to look at the value of gold 5 years back and compare with its present value to understand its significance.
Stock market is another option which fetches returns. One should be aware of the stock scenario, the upward trend and the downward trend of the market and should be up to date with the latest economic and the industrial news, government policies which may affect market situation etc. One should have Demat account and a trading account to do trading in stock market. Or if you are unsure about this, you can invest in Mutual fund, which is basically is same, except that you leave it to the experts, who handle your money for trading. It is safer option if you are new to Share Market.
Having your money in fixed deposit is considered the safest option especially if the deposit is made in government sectors. The return may be lower when compared to others, but the risks are least. One can also invest in private sectors, after verifying the credit rating of the company.
Wise way of investing would be to have a combination of the above. That is you can allocate a portion of money for Fixed deposit and a portion for shares, gold etc. Many a people have also lost their valuable money because of their over greed to earn money. So tread cautiously and do not get carried over by the previous fortunes. What applied to that situation may not be applicable now, so always study the situation carefully and decide upon a wise way, to have a rewarding future.
