Investment is a very beautiful term when you know what exactly it is! If you don’t know it. Then it becomes a pain for you or anyone who doesn’t know much about it.
Now, to know a little more about Investment in a much more simpler way.
Definition: Let me explain it to you this way!
Say, you have some money with you left after having all the expenses for the month done as of now. And, you don’t have any need of the surplus left post all the things having been done.
Now, what do you do with this extra amount??
There are 2 things you can definitely do out of it!
- Just let it be in your savings account and let it earn how much ever interest it will earn over the period of time (very negligible growth of money).
- Invest it into something productive so that you can earn huge or considerably high returns than what you would gain from than just keeping it in your savings account (considerably high growth of money).
Now, when you get into this phase of ideology. That, you want to grow your money and not just accumulate whatever is available with you.
Investment comes into picture.
By Investing your money into some of the well established process you can very well grow your money over the period of time and earn a very a good returns for your future requirements.
There are various methods of investments being done these days. Just to note few of them being LIC Policies, Mutual Funds, SIP, Cash Certificates, etc.
Tenure of Investment: Very important aspect of any investment being done is the tenure of investment you are planning to do!
Simple straight forward logic behind investment is.
Longer the tenure = Higher will be the returns
Shorter the tenure = Lesser will be the returns
Conclusion: I would always suggest and would personally plan for a longer duration investments than opting for a shorter duration one.
Because, No matter what you see, what you read in any advertisements or any TV commercial ads, etc. People say even for a shorter duration we can invest sometimes.
Yes, that is undoubtedly true. But, growth of your hard-earned money for such investments is much lesser.
So, reduce probability of such short-term investments and increase chances to opt for long-term investments and plan accordingly.
If at all … in any corner of your mind you found this post to be insightful, served the purpose of your reading, got overall picture of what investment is all about?
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