Do you know what is meant by 'Investment'? Investment means smart and systematic planning of money for future financial use or simply budgeting. No matter what your income is, whether you have a lump sum amount of money or some minor savings, you must set aside some money for future use or financial investment.
You must always take some risk to gain something in life, as the proverb says,‘No Risk No Gain’ but this proverb does not work all the time. So it is essential to be accustomed to or fully aware of investment plans before investing. Therefore you must always see the ratio of risk to gain during investment. Wondering how to do all this? There are varieties of investment plans which can even be gainful for beginners.
Some of the ways are listed below:â€‹
Clearing Of Debts:
Although this is not a proper way to invest, but one should clear debts in order to save money for future use or investment purpose. To clear debt is the initial steps to investment as it clears all the borrowings of a person in the market and helps him concentrate on new investment plans as per his choice.
Investing In Banks:
The bank is a financial institution that accepts deposit and grants loan too on a long-term and short-term basis. It accepts deposit and in turn, gives interest to money owners for keeping their money with the bank. It accepts the long-term deposit in terms of the fixed deposit (F.D) and short-term deposit in terms of recurring deposit (R.D). People deposit money in the bank to keep it safe from theft and for investment purpose as we enjoy interest. But what about interest? Interest rate differs from bank to bank. Usually, interest rates are high in private banks though rates differ for senior citizens.
Business is a type of good investment which can bring profit to a great extent if it is a success.
Foreign currency exchange abbreviated asFOREX is also a type of investment but it can be highly risky for novice and beginners.
Investing in precious metals means buying coin and ornaments of gold, silver, etc. This has a high resale value in the future generally higher than cost price (C.P?)
Investing In Raw Materials:
Investing in raw materials means purchasing a product of construction like brick, cement, etc. stationeries like a pen, pencil, etc. and grocery items like rice, wheat, flour, etc. which is meant for sale in monopoly market at a fixed price not to be bargained with.
Some Other Ways To Invest That Are Also Useful Are:
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