Why should anyone invest

What is Investment? 

  

Investment is an asset which will generate returns in future or generate an income or appreciate the value of asset and you can sell for higher rate.

Ex: The person one who is earning as an income from his salary or self-business etc... He can have surpluses money and invested for future purpose or goal oriented work. We used measure in terms of percentage (%).

There are few main reasons to invest your money.

i .Overcome the inflation:  Basically the value of money will decrease day by day means the way of living cost  will become costlier compare to past .so our investment  also should give  returns to compete with inflation.

ii .Create wealth: By investing only you can create your wealth not through the savings. The surplus should meet your finical goals.

iii .To meets the life’s financial aspiration 

What are the investment opportunities?

The one, who knows the value of investing or benefit of investment, will start search for where to invest. The best investor always measure his risk capability and accordingly he should prefer investments

Risk directly proportion to Returns

We always used to call as an asset classes, here we have different asset according to risk profile.

Fixed income instruments

Equity Instruments

Real estate Instruments

Commodities 

Fixed income investments:

These instruments will give fixed return and limited risk for your principle and return. These instruments will give fixed interest return and this will be paid quarterly, semi-annual or annual   to the investor’s .And capital will be returned to investor on maturity date.

Instruments

Fixed deposits offered by bank

Bonds issued by the Government of India

Bonds issued by government agencies

Bonds issued by corporate’s

Usually in market we can get 8-11% returns on fixed income instruments.

Equity Instruments:

Investing in equities means you are the shareholder of the company and you are ready to take profits in that company. You can invest through our Indian stock exchanges like NSE and BSE etc.

This instruments unlike fixed investment instruments, you will make 13 -15% returns in market and this fast experience in Indian market. If you can identified good stocks you can make 20 % returns also. If you are holding your investment’s more than one year you can save capital gains under tax complications. This will be extra benefit for equity investors.

Real Estate:

This investments involves in buying and selling a commercial and non-commercial lands .and at the same time busying commercial and residential buildings also.

Here investors will get two ways benefit; one is rental and capital appreciation. This returns will depends on market booming and its bit volatility.

Commodities:

Investment in metals like gold and silver etc. in India most of the people will prefer investment in gold and Indians feel as traditional culture. Recent amendments we can invest in digital gold investments also like Gold ETF’s and Gold sovereign bonds.

This will give normal returns like fixed income instruments 

The overall investment opportunities we have in market .and we can see the returns and risk profile also.

Fixed instruments are giving fixed returns with limited risk and in equities you can able to extend your returns up to 15 to 20%.

Real estate will giving better returns but it’s more risky and you should have more capital to investing. Commodities (bullion's) will give average return equal to fixed income returns. I think most trending investment is Equities in terms of return and risk.

Start invest in markets and make your futures bright.

you can open your account with zerodha .

Thank you.