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Investment & Need of Investment in Stock Market

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.

One needs to invest to 
  1. earn return on your idle resources 
  2. generate a specified sum of money for a specific goal in life 
  3. make a provision for an uncertain future.
When to Start Investing
  • The sooner one starts investing the better. By investing early you allow your investments more time to grow, increases your income, by accumulating the principal and the interest or dividend earned on it, year after year. year after year.
  • The three golden rules for all investors are: 
  • 1.Invest early 
  • 2.Invest regularly 
  • 3.Invest for long term and not short term
Where to Invest
One may invest in: 
  1. Physical assetslike real estate, gold/jewellery, commodities etc  
  2. Financial assetssuch as fixed deposits with banks, small saving instruments with post offices, insurance/provident/pension fund etc or securities market related instruments like shares, bonds, debentures etc.
Short & Long Term Options for Investment
Short Term: 
  1. Savings Bank Account 
  2. Money Market or Liquid Funds 
  3. Fixed Deposit with Banks 
  4. Fixed Deposit with Banks     
  1. •LongTerm: 
  2. PostOfficeSavings 
  3. PublicProvidentFund 
  4. Bonds 
  5. MutualFunds


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