Investment

Investment : Once you achieve your basic goals by fulfilling basic needs of your family like feeding and sheltering them. Now its time to invest and allocate assets to provide security for family in long-run.

 Why investment ?

Investment into equity bonds, mutual funds currencies, or any kind of assets leads to create some kind of wealth which helps to achieve your financial goals,

EX: Buying house, going on vacations, marriage and many more.

 Is your investment beating the current inflation ?

Have you ever asked this question to  yourself before you invest money. If yes, then absolutely  you are an good investor and if your answer is no then start asking this question whenever you invest next time.

your investment should beat inflation.  

money in saving account                                          Rs

2,00,000

 Interest in 1 year (@ 4% per annum )                    Rs   +   8000 /-
  Total value                                                                 Rs   2,08,000 /-

 Impact of inflation ( @ 5% per annum )                Rs    - 10,000/-

Actual value at the end of 1 year                            Rs  1,98,000 /-

 In the above example we can see that the inflation is beating  our investment which is @ 5% p/a and our interest is @ 4% p/a. It  means this is not profitable deal.

Conclusion :

• You must think before you blindly invest your money .
• Must check whether the rate of interest your getting is beating the current or future inflation.
• Once in 3 months it is important to review  whether your money is in right hand.