Investment is an action of investing money for profit. It is the dedication of an amount to get an increase in value over a period of time. You should sacrifice time, money or effort for it. The investment is to generate return from invested assets. Income investing is an investment that is centered on building an investment portfolio to generate regular income. It helps to get a constant stream of income. Investment is acquired to build wealth and save money from an income.It obtains additional source of income from the investment.
Investment is the purchase of anything for future use with the goal of generating regular cash. The main investments are stocks ,Bonds ,Mutual Funds ,options ,annuities,commodity futures,insurance, retirement ,Bank products, saving for education etc. Most people think about various types of investments to achieve their financial goals. Each of the investment types like Bank products to stock and bonds have its own features, risk factors etc.
When you want to invest in stock you should become owners of a corporation. It is known as equity shares. Whether you make or lose money on a stock depends on the success or failure of a company. Stocks and stock mutual funds are important components of an investment portfolio. There are many two kinds of stocks. They are common and prefered stock. If you hold common stock you are in a position to share company success. There are no price feelings; it is possible for shares to double though they could also lose value. Holders of preferred stock are usually guaranteed dividend payment. It may increase if the company’s profit rises and the preferred dividends are fixed.
Mutual Funds are a popular way to invest in security. It offers diversification and professional management. It has certain risks including the possibilities that you may lose your money. If you want to invest in a mutual fund ,you should find all of the details about it including its investment strategy , performance history ,management, fees etc.
Mutual Funds are equity investments. When you buy shares of a fund you become a partner of the fund. When you buy a bond you are promised a specific rate of indirect and return of principal amount. Equity ownership of the fund right to share of what the collecting in interest. If you own shares in a mutual fund you share in its profits. Mutual Funds are open end and closed end funds. Open end fund can buy and sell shares at any time. If an open in the fund is closed it still remains an open end fund since existing shareholders can continue to buy and sell fund shares. Closed end funds raise money only once in a single offering. It uses h money to buy a portfolio of underlyingInvestments.
Bank FD
Bank fixed deposits with maturity from 7 days to more than 75 month the bank is offering interest rates from 3 to 5.75 %for the general public. You will get a fixed return from the Bank fixed deposit. amount. It is also a guaranteed returns.It is also a safe investment option because market fluctuations do not interrupt the interest rate on fixed deposits. Fixer deposits provide higher returns than savings accounts. It is the most popular investment option in our country. Most people select fixed deposits as the best investment option. In this deposit a sum of money is locked for a fixed peraces of time. The tenure is decided by 1person who invested his funds. Fixed deposit pays a fixed rate of interest to the depositor. Y0ou can open a fixed deposit online and offline.
The difference between deposit of bank fixed deposit and equity mutual fund
If you want to invest it for a long period of time you will get a certain interest.when you invest Rs 1 lakhs in FD, for 5 years. You will get 6% interest .You will get interest Rs 33,882 only.If you invest Rs 1 lakhs in equity mutual fund for 5 years,you will get 10 % to 15% interest rate. You will get Rs 61,000.But it affects market fluctuations. After 5 years, you will get Rs 1,33,882 in FD and Rs 1,61,000 in mutual funds. You should manage market fluctuations.
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