is the key factor which exists in someoneís life. Some invest
in Real Estate, some in gold, some in shares , some in bonds,
some in post office schemes, some in mutual funds, some in
banks and the likes , but one thing remains the same i.e.
everybody do investment irrespective of in what thing they
are investing but they invest thatís for sure. But the question
arises: Which investment is beneficial for us? What kind of
investment will give me good returns? Should I invest for
long term or short term?
kind of common questions pop-up in ones mind. After reading
this article one will be able to know what he/she should invest
in, what kind of investment should be beneficial for them?
invests in different things because there exist ĎNí number
of things to invest in. And there is no use of investmentís
done without any purpose & without purpose no one does anything
in there life, itís same in case of investments too. Investments
are done by few to do there savings for long term, some do
to get short term benefits. And by doing investments every
one try to be secure financially and to satisfy there material
needs and in a way it also satisfy other kind of needs too.
helps one to secure there future needs and wants. One can
invest and save money for there children, one can invest and
can save tax too, one can invest to get good return after
getting retired. I believe when someone has an aim he/she
will try to achieve it and if one has no aim then he/she donít
have a right path and scale to work upon. Investments should
always be done with a purpose in mind, because if you donít
decide what is the return you expect from investments then
you will not be interested in knowing the profit you will
just say I am investing just to invest which is totally a
Independence & Planning
play a key role in making one financially independent. Investments
form an integral part of financial planning as they generate
future returns & also fulfill Structured finance
needs. Before I tell you about the planning few question are
need to be answered by you:
Have you planned your finances well?
Have you planned for your child future?
Is financially your coming life is secured?
Do you have a secured portfolio of assets?
are just few questions which need to be answered & to be planned
for. All you have to do is invest to achieve your plans to
satisfy your needs but before investing you should have a
deep knowledge about the thing called investing or you can
call up a person who has a deep knowledge about this subject
& need his or her guidance to help you out but yeah the choice
is all yours to choose the right person for right work.
investing in any thing you should plan well about how much
funds you should allocate to what type of assets. Asset allocation
is important part of investing and a diversified portfolio
or asset allocation should be there, because investing in
one asset alone you are taking a huge risk and you never know
when rainy days come and you need some funds so make sure
that your have always your hard earned liquid assets in your
hands i.e. Cash.
allocation should be done in appropriate manner which includes
Gold, Equities, Real Estate, and Fixed Income Instruments.
And the most important is your risk appetite,
it decides about your risk taking capabilities & also in deciding
your final destination. And a diversified portfolio helps
in securing your money.
are important for a portfolio:
Fixed Income Instruments
the Risk, Higher the Return
point here I want to state is itself clear by its title, the
more risk you take the better the return is, as if you donít
take risk you cannot rise. For example: - you cannot learn
swimming without entering into the water, yeah you can take
precaution so that you donít drown. In the same manner a diversified
portfolio is the best precaution in case of investments.
the Risk, Lower the Return
like higher the risk higher the returns, the same way lower
the risk lower the return. But does that mean you should not
invest in them? Yes / No? Itís no, because to give stability
to your portfolio lower risk funds are required Structured
is important liquid asset and it is the basic thing to invest,
without it you have nothing to save, to invest & to expense
To meet our day to day expenditure cash is needed & also for
the unplanned expenditure.