What is Investment?
Investment basically means reserving your resources, usually money to gain advantage in future. Investments hold the key to an investor’s future. They help to bridge the gap between their dreams and reality.
Which resources can be used form investment?
Money: Money is the primary form of investment, Money is any object that is accepted as a medium of exchange for goods or services. Time: Time is the secondary form of investment, you can invest your time in your personal growth, education, wellness etc.
Where to Invest?
Stock Market: The stock market has delivered generous returns to investors over time, but it also goes down, presenting investors with the possibility for both profits and losses, risks and return.
Mutual Fund: mutual funds combine the rewards of investing in stocks with the ease of putting money into a diversified mutual fund. Mutual funds are a powerful tool for investors who want to invest in a diverse portfolio without having to do much investment management themselves.
Banks: Banks pay different interest rates on different accounts, and you typically earn more the longer you are willing to let your money sit. While security is an important benefit of a bank account, limited profit potential is one drawback to this type of investment.
Bonds: A bond is essentially a debt obligation that can be issued by a corporation or a government entity. Just like any loan, you benefit from your investment by earning interest that said, some bonds do carry the risk of default, where it is indeed possible for an investor to lose.
Gold: Gold is a viable investment option for those looking for something that can provide them with a long-term store of value. Its popularity has paved the way for its high liquidity its speculative nature of value is precarious for conservative investors.
Real Estate: Real estate can be an incredible way to generate passive income and build wealth, as with any type of investment there are risks associated with real estate. However real estate has proven to be a very stable investment when compared to some other markets