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How To Invest
Why should you invest?
Reasons to invest?
1. Beat inflation
value of goods increase by each years, if you try to remember about the value of things you used to buy years ago and that same goods today you can notice its the huge change in money ,this is called inflation ,the vale for money of a certain goods increase at a percentage every year
For example ; you have 100 rupees in your hand and the price of rice in you country is 100 rupees after a 5 years the price changed to 105 rupees and you have the same 100 rupees in your hand you don't invest it you just kept the money the same time it had only made you poor nor rich nor in a constant wealth ,so in order to beat inflation you have to invest the money in your hand
2. Create wealth
If you have to create long term wealth in order to have financial freedom, Financial freedom means we get money now by sacrificing our time doing some jobs but at a certain point of your life you will like to have money by just the moany you have made in your good times or you want to increase your wealth by the money you already have, without investing financial freedom is not possible
3. Meet your aspirations
like said earlies money should make money, and we should enjoy our life
Where should you invest?
Now you known the importance of investing, so where should you invest is also an important thing to know, where you invest you should get maximum returns then only it can be said asset class
1. Fixed return investments
Here the risk is too low to get high rewards or returns, as the risk decreases reward or returns also decreases here you will get 8-11% returns annually
2. Equity investment
The most important investment, the share market etc all are in this topic equity means share of a company risk is high and the rewards are also hight but we can divide the equity investment with risk and without risk like we could use mutual funds but the reward may get reduced but if you spent time in stock market analyse yourself and risk your money on the basis of that analysis you may get higher rewards its gives about 13-18% of returns of all the assets this one will make you rick
3. Real estate
Its very interesting topic we cannot quantify the risk or the returns from this asset but we can achieve verity of returns form this asset like 1 Capital appreciation ; the price of land increases year by year. 2 rental income ; if we get a fixed amount of money from a building of ours then that is a good rental income 3. trade ; buying and trading lands is also a good source of capital yet it is very down in market due to many reasons
4. Gold & Silver
Investing in gold is a brilliant decision, we could buy gold through digital
Asset Allocation
Where should I invest, first of you should be aware of your background, your age, what kind of life you need, when to retire etc so you have to make your own profile
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