WHAT IS INVESTMENT
INTRODUCTION:
In general sense, investment means saving. But it is not true, because saving means expending less than Income. & Investment means what one does with his savings. If one keeps his savings in the form of cash, it is certainly going to decrease in value because the value of money is constantly going down. Therefore, if one wants to maintain or increase the value of his saving then he has to keep savings in forms other than cash. That is what investment is all bout, development of saving with the intention of preserving or increasing their value.
The primary objectives of an investment is:
=> To earn highest rate of return.
=> To ensure utmost safety of capital.
The secondary objective maybe:
=> Growth of capital
=> Liquidity.
=> Tax savings.
In the search of higher return, the investor finds many methods or investment tools for making money. They may be shares, debentures, bonds, real estate, gold, precious stones, commodities, mutual funds etc. they offer different rates of returns but also at proportionate risk. We will now take a look at investment opportunities and some of their unique characteristics. This will be followed by a comparison of all of them on the basis criteria crucial for investor.
Download Full Project Report
INTRODUCTION:
In general sense, investment means saving. But it is not true, because saving means expending less than Income. & Investment means what one does with his savings. If one keeps his savings in the form of cash, it is certainly going to decrease in value because the value of money is constantly going down. Therefore, if one wants to maintain or increase the value of his saving then he has to keep savings in forms other than cash. That is what investment is all bout, development of saving with the intention of preserving or increasing their value.
The primary objectives of an investment is:
=> To earn highest rate of return.
=> To ensure utmost safety of capital.
The secondary objective maybe:
=> Growth of capital
=> Liquidity.
=> Tax savings.
In the search of higher return, the investor finds many methods or investment tools for making money. They may be shares, debentures, bonds, real estate, gold, precious stones, commodities, mutual funds etc. they offer different rates of returns but also at proportionate risk. We will now take a look at investment opportunities and some of their unique characteristics. This will be followed by a comparison of all of them on the basis criteria crucial for investor.
0 comments:
Post a Comment