What is an investment ? & how many types of it.

What is an investment ? & how many types of it. 1

What is investment

Investment means to put your extra capital or money in such a place where there is a possibility of getting additional money in the future. According to great investor Warren Buffett, the “money-making process” is called Investment to get more money in the future. The goal of the investment is to put your money in one or more types of investment instruments so that your money increases with time. Understand the difference in savings and investment.

Less work earn more.

Most of us work hard in our work, whether it’s our job or our own business. We often work for several hours, which requires Mehn and we are often in tension. To save some of your hard-earned money and investing it for your future needs is one way to get the most from your earnings. Investing is actually a way to earn more with less effort with intelligence but is very dangerous.

Today’s desires or future needs

Where and how you use your income money, your priority in this investment is that you want to save for the future. It is very simple and easy to spend money and it also provides a momentary pleasure, then whether it is buying new clothes, eating in the Restaurant or going on holidays. All this can give us happiness which will only be for some time, future needs will put us in worry again, but when we invest, we give priority to future needs more than today’s desires.


Do not invest only in the return of more returns. If you only look at investing, that scheme has given a great return, it can prove to be harmful to your financial health. We have a dire need to select the right investment products to meet our financial goals.

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we can understand batter with an example, A person named Ramesh is putting money in the stock market. Ramesh is doing this because the market is doing well at that time. He sees that the market is growing, he withdraws money from everywhere and invests them in stocks.

After one month, the stock market seems to fall. Someone advises that there is a great opportunity to invest in the decline of the market so that they invest more money in the market. This will give him a great return. Ramesh does this, he increases investment in the stock market but the market gets slipped. After three months the market drops by about 10 percent. Now he wants to get out of the fastest market as soon as possible but he is in a dilemma.

He asks his friend Sanjay. Sanjay says that investing in the stock is a ‘fool’s game’ and he also teases Ramesh on investing in the stock markets. Sanjay tells Ramesh the characteristics of cryptocurrency and says that he has also invested in cryptocurrency and he has got a lot of profits. Ramesh is very unhappy about the fact that his equity portfolio is not performing well. Still, he is confused about the investment in cryptocurrency.

After 10 days, when he meets Sanjay again, Sanjay then says to Ramesh that since the time we met ten days ago, the price of the cryptocurrency has climbed 5 percent so far. The sharpness is shocked to hear this. He sells all his shares and puts all the money in the cryptocurrency.

Ramesh is happy for some time, but due to a huge drop in cryptocurrency, his investment comes in around 20 percent in two months, that is, Ramesh saved him only 20 percent of the amount he had invested in the stock market in the beginning time. he is waiting for a bounce-back in the cryptocurrency.

In the meantime, Ramesh is looking for other investment options that can give excellent returns, where he could invest in new space by selling the investment of the cryptocurrency. At the same time, the stock market has returned rapidly. Now he is sad to sell her shares. Now he is again considering investing in equities.

What you should do

First of all, you should be patient. We have to give time to our investment. Perform different parts of the investment at different points. Looking at this, we need to make a good portfolio. Just as we can not always buy cars by watching mileage or speed, just look at the returns and avoid investing in any scheme.

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High Return Investment Plans

Investing in Equity Shares is the best option. According to the analysis, compared to other investment plans, returns are the highest return on equity, there is no upper limit of returns on equity. There are many such investors who get many times their returns on equity shares.

But there is also High Risk with High Return and this applies equitably only on Equity. The likelihood of this increase in the share market is always equal to the probability of its fall and if you have to make a decision to invest in equity with understanding, then it can reduce the risk to a large extent.

Mutual Fund

Investment in Mutual Fund Salaried Person, which gets salary every month, is considered to be the best investment option for the – Best Investment Option for Salaried Person

Mutual funds, equity and is the best option to invest in bonds, which has the advantage of risk and return.

A small portfolio can be created by investing in small savings in sip every month and has taken a step towards securing its future.

Through Mutual Funds, you can invest in the equity of various sector companies such as finance, energy, health care, technology. This will reduce your total risk. For example, if a company does not give good returns at any time, but other companies will reduce your losses by giving good returns and your portfolio will be in profit and you will be away from loss.

real estate investment

Real Estate is one of the fast-growing investment areas in India. A few years ago, people used to buy houses, land or commercial places for their use, but due to the change in investment and return tendencies, they are starting selling them in real estate to earn high profits in the future.

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As you know, there is no minimum or maximum investment limit in real estate. If you do not have much money, you can also invest in Shares of Real Estate companies.

Occasionally, the value of the shares in the market increases their value more than the actual price, which keeps moving automatically. In such a situation, it should be kept in mind while investing.
The profit on the sale of Real Estate is completely taxable. However, you can save tax by re-investing Sale Money.
Investment in real estate depends only on how much you invest in a sensible way. For example, suppose you are buying some land from a few cities far away, so if there is a possibility of development in the future then you can get a big advantage.

Public Provident Fund Investment

Public provident fund is the safest and long-term tax saving investment scheme in India. The reason for this is that PPF investment is being run by the Indian government. The PPF account can be opened in any nationalized, authorized bank and in certain private banks and post offices.

Taxes are not taxed on the return or interest received on PPF and you can save tax under Section 80C of Income Tax by investing up to Rs 1.5 lakh per annum.

PPF investment is a long term investment that is for 15 years, can be extended for 5 years and requires a minimum of Rs 500.

If you are considering income tax deduction under Section 80C then the maximum amount is 150,000 Rs.

The current rate of interest on PPF savings is 8%, which is more than a Fixed Deposit.

PPF gives you compound interest on your investment and the amount of interest is tax-free.

You are allowed to withdraw your investment from your account only after the end of the 6th year.

National Saving Certificate

National Savings Certificate (NSC) is a type of government Saving Bond that is a Risk-Free Investment option. This is a part of the Indian Postal Service.

NSC VIII has been fixed for 5 years.

The interest rate is 7.9% compounded annually.

The tax rebate is available under Section 80C of the Income Tax Act on an investment of Rs. 1,00,000 / – per annum.

minimum investment limit is Is 100rs and maximum limit is infinite

Interest received from NSC is tax and this is not tax-free.

National Pension System

NPS is established by the Government of India for the purpose of providing pension benefits to all citizens. Due to government involvement, this is a safe investment plan for pension purposes.

There are two types of options available in NPS –
Tier 1 Account – Under this account, the customer can not withdraw money before retire. It is mandatory for all government employees to invest 10% of their salary in this account.
Tier 2 Account – Under this account, as well as investing the funds of the client, they are free to withdraw money according to their convenience. However, a customer must have a Tier-I account to open a Tier-II account.

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