Get to know whats is INVESTMENT
September 11, 2021Before investing in any security have you ever thought what ‘investment’ actually is? Investment brings many benefits with it. Investment is the employment of funds with the aim of getting returns on it. It is a commitment of funds saving in current consumption with aim of getting some future benefits. Thus it is the reward for waiting for money. ‘’Idle money is not savings’’. Investment decisions and financial decisions interact with each other.
We earn money with hard work, patience and dedication but one slight mistake will bring all this money and effort in vain. Hence portfolio anaylisis is essential. Therefore, one should keep the following things in mind while investing:
Interest
People often say, you should always do what interests you. Hence when it comes to interest one should have self interest. As life is full of uncertainty, no one can reach the destination unless you are enjoying the thing you’re doing.
Numbers
As said earlier that investment is reward for waiting for money, numbers here play an important role as to how many and how much? One should be clear with how much to invest and how long to invest. This clarity is beneficial for future.
View
‘Regularity in work leads you to better future’ hence keeping this in mind one should view your investments regularly as it can help to ensure that you’re on track to meet your financial goals. Failing to regularly re-evaluate what you’re investing in and how those investments are performing could skid of the rail, where your goals are concerned.
Engaged
We invest with the view to grow money, hence we should be in contact or engaged with every activities, related to investment such as schemes, advises, period , amount
Schemes
The aim of income funds is to provide regular and steady income to investors. An investor is not only a sole person but he is also associated with his family,business and much more hence in order to eliminate excessive risk he needs to go with respective investing schemes according to his goal and future benefits.
Mental
They say if you are mentally prepared, you can do anything you want to do, hence an investor needs to be mentally prepared to accept and overcome all investment related risks, ‘’ as investments are subject to market risks.’’ unprepared mind leads to future problems. Hence a well mind is a free mind.
Examples
As mentioned earlier money is hard-earned, hence making a mistake will crumble down the efforts. Examples are set so that one could follow or learn from it, hence one should look at examples or advice of big and successful investor so that you are cautious about the stepping stones. For example: one can read examples set by famous investor, Warren Buffet and his ‘’pain-gain’’ journey.
Need
Every person has a certain goal or objective to achieve. Hence investment should be done keeping in mind future goals. You should invest looking at the need or else you will end up with no income in future.
Taxes
As we all look for profit tax, saving investments play an integral part in one’s life as they offer tax deduction. But while choosing a right tax-saving investment one should keep in mind the factors like safety and returns.
