Investment Basics

Investment Basics:

Here, we are going to see about the investment basics, investment options, various investment types etc.,

What is investment?

The money you earn is partly spent and the rest saved for meeting future expenses. Instead of keeping the savings idle you may like to use savings in order to get return on it in the future. This is called Investment.

Why should we need to invest?

One needs to invest to:
a)earn return on your idle resources
b)generate a specified sum of money for a specific goal in life
c)make a provision for an uncertain future

One of the important reasons why one needs to invest wisely is to meet the cost of Inflation. Inflation is the rate at which the cost of living increases. The cost of living is simply what it costs to buy the goods and services you need to live. Inflation causes money to lose value because it will not buy the same amount of a good or a service in the future as it does now or did in the past.

More on coming posts....