Finance, Personal Finance

Investment and how it works!

Hello!

Today, Let’s talk about investment.

Let’s look at the basic level definition as I don’t wanna intimidate you by using foreign terms.

An investment is a practice of spending money on something of worth or resources that you believe will increase its value in the future.

For instance, If someone is investing their resources, the ultimate goal is to generate profit or appreciation.

Financial Investment can be done in many ways like Buying Assets, Insurance Plans, Mutual Funds, Real Estate, Stocks, etc. You can decide the way you would like to invest in your future self. We can’t expect investing to make money in a few days.

As Warren Buffett said, “The stock market is a device for transferring money from the impatient to the patient.”. Before investing you should make sure that investing is for your future self, and doesn’t work as instant savings to satisfy your present needs.

If you purchase a Stock, the outcome will be determined by the company’s sales. The value of your investment will be evaluated mostly by the company’s sales. If we take Gold, it will increase its value because of the ongoing demand for gold. Real estate is an asset because the cost of the property will never cause you to fail; in fact, in certain situations, the money you put into real estate will provide a 10x return.

Investment does not necessarily guarantee a profit; it may sometimes result in a loss. As a result, we should exercise caution in the early stages of investment. If you believe you are ready to invest, you may consider the following:

- Mutual Funds: Mutual funds enable you to invest in a variety of stocks, bonds, and other assets. There are several mutual funds on the market that provide low-cost investing.

- Individual Stocks (Equity): Equity is having shares in a public company. You may begin by purchasing individual stocks in a public company that requires you to pay fixed interest every month. You may invest a small sum and get the equivalent percentage of ownership in the respective company.

- Investment Apps: Nowadays, there are several applications that allow you to participate in various stock markets at a lesser cost. By using them, you can buy and sell stocks with a single click. Try them out and watch your investment grow!

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