Do you dream to become richer? Do you see people around making money by making right investment? Do you dare to invest money but don’t know how to begin Invest?
Then you are at the right place.
Team bloghindustani can help you understand the basics of Investments and how to play safe with your hard earned money so that you can gain more rather than losing!!!!!!
First of all you will have to know the best way in which you can invest your money so that you see it growing in a timely manner.
Let us first understand what you mean by Investment or Investing: It is nothing but saving your money through some source expecting some profit or income when you redeem it.
Well it is obvious that we earn money by doing regular job but that is not sufficient to make you grow richer. Doing a regular job will fetch you money for your daily living but after you retire from the job you got to have some money to spend rest of your life leisurely.
Dream Big to Achieve Big!!!!
This can be achieved if you save your money through some kind of Investments.
Investments can be made through various methods by putting your money into stocks, mutual funds, bonds, ulips, Gold, ELSS, real estate or starting your own business.
However it doesn't matter which method of investment you opt as long as your money grows. Team bloghindustani will help you achieve your goal of earning more and more income from your capital investment.
Anyone in this world cannot be an investor and moreover investment is not a "Gambling". As my best friend always tell me that investment is an "Art".
A true investor will not throw his hard earned money in whatever investment options he sees around. He will think about the options available and analyze the pros and cons for this type of investment and will do a thorough analysis about the company for which the investment is made and then only commits his money if there is a reasonable amount of profit. Yes I do agree that there is a risk involved in this also but still you should have the courage to lose if you want to earn.
Let us understand different types of investments briefly so that it will be easier for you to choose what is best for you.
Bonds:
Bonds are generally called as fixed-income securities. A simple example for bond can be National Saving Certificate (NSC) where in the money you are putting is invested in government sector. Here the advantage is that the risk is too less and your money is absolutely safe, however the returns will also be less as compared to other types of investments. And you know what the return that you will recieve during maturity is.
Stocks:
Stocks are highly volatile when compared to Bonds since the latter provides a steady income. When you buy a stock you become partially an owner of the company and you are eligible to receive profits that the company shares with the owners. These profits are known as dividends that will be distributed across the shareholders.
Why stocks are volatile?
Stocks are highly dependant on the market conditions. It depends on fluctuation of market. That is, if the markets are up and if the volume of the trade is high then there is a chance that your value of the stock can go high. You cannot expect a sudden spike in your stocks and very high returns. There is a big risk in investing in Stocks however the potential of returns are very high. So if you dare to take risk then you can enter stock market. By knowing some basics of Stock trading you can earn easily in Stock market. We will discuss more about this in the next section.
Mutual Funds:
A mutual fund is a collection of stocks and bonds. When you buy a mutual fund, the money that you invest is allocated in various sectors. So you will have to see what kind of mutual funds you select based on the asset allocation and in which companies those mutual funds are investing. It all depends on the fund manager who is the one responsible for these asset allocations. The mutual funds are also allocated in securities but still all mutual funds are subject to market condition i.e. there is no guarantee of potential high returns. The fund manager can allocate the assets in large stocks, small stocks, and bonds from governments, bonds from companies, stocks and bonds, stocks in certain industries, etc.The advantage of a mutual fund is that you can invest your money without much experience but you got to be smart to choose a right mutual fund.
In the next sections we will post tips on Stock trading.