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  • Category: Miscellaneous

    We Should Invest or not.

    Nowadays Investing has become an important part of our lives for future security.
    Everyone wants to ensure their life. They have many plans of investing such as term plans, guarantee income, retirement plans etc as well as we want a new home, college education for your children, or expensive life style but due to low interest of saving money, our investment has no value in the future.

    Through this thread share your opinion on Investing
  • #752390
    It is said that a person should save at least 40-50% of ones earnings. Now this saving has to be invested in some scheme. When we think about savings and investments then there is a major consideration and that is how much risk we can take. More risk we take more chances are there to make money but at the same time there are dangers of losing money also. So we have to choose a balanced path. Before coming to the investment type let us first understand that there are two main categories of investment - one is short term and other is long term. Short term investments are for our needs during the coming 3-4 years. Long term investment is done on a horizon of 10-15 years when we do not require that money in near future. For short term investments bank and Post Office deposits, balanced mutual funds etc are preferred. For long term investment equity based mutual funds, shares, PPF, gold, non taxable bonds etc are first choice. In long term investment patience is the key to the handsome gains.
    Knowledge is power.

  • #752394
    If you take advice of the experienced persons relating to financial apparatus, they would suggest you to park at least 20 to 30 percent of your savings. However, looking at the fixed deposits of the banks, the interest rates have fallen sharply and at present it is hovering around 5.5 percent to 6.5 percent applicable for the senior citizens. Such a low interest rate will even eat away you principal money due to higher rate of inflation. Just to afford the higher education of our children and for the marriage of our daughters or for any emergency purpose, the yield would not be sufficient to help us in the hours of need.
    Jumping straight away in the share market for may even invite risks to the extent that there is even erosion of the capital. If you minutely observe the market, we find that IT sectors or Pharma Sectors are doing well and investing some money in different shares with the consultation of financial experts would definitely provide us rich dividends with the time. We can even go in the mutual fields such as balanced funds, debt funds, index funds etc to enjoy the substantial growth in future. Care is to be taken so that entire investment should not be made in one basket but it should be rather diversified to mitigate the losses, if any.

  • #752406
    Actually the present situation is opened for many investment plans from children to the elders and all have its own benefits and advantages. As the children education has become more costly, allotting fixed amount parked in growing money every year and paid per annum is the best take. For example an amount of 20,00,000 invested in schemes would fetch 1,20,000 per annum and at the end of 20th year the money would grow to 43 lakhs which is enough to take care of big studies. Likewise for elders there are great pension plans as they can invest their retirement benefits of huge money and draw monthly pensions ranging from 20,000 per month and at the end of maturity a lump sum of 1.25 crore is paid for 40 lakh investment. These kinds of schemes are very attractive and people are having hassle free life.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #752413
    Very nice post. In the case of investment, in the end, the profit belongs to the investor. If one wants to be financially secure, create extra wealth, be prepared to face adversity, use time, then investing is the ideal way. Which should start from the initial stage of life. Proper use of earnings increases wealth. The amount of investment also increases with time. As a result, the investor's money also increases. Suppose someone invests 500 rupees today, then in the next 5 years, its value will not be the same, but will increase. So investing in wealth growth is important for everyone.
    Suppose a 50-over cricket match has lost five wickets in the first five overs. This time the No. 6 batsman has come to the crease. If so, what will be his main goal now? His first task will be to make sure that no more wickets fall. In the same way, after getting the money for monthly income, what is left after deducting income tax and daily expenses is much like the condition of the wicket of that match. The remaining 45 overs are in hand. So the number 6 batsman has to increase the run also. This time, if the batsman continues to defend only, then the run will not increase. So to score a decent fighting score at the opponent, the batsman has to take some risks. Whether it's a shot over the fielder's head or a cut or a drive, the reverse sweep can be made for the score. In the same way, to raise a large amount of money to meet a financial goal, the investor has to take certain risks through various investments to keep inflation at bay.

    Believe in the existence of God the superpower.
    Regards
    Dhruba

  • #752414
    Investing the money that is saved for our future wisely and safely is very important. We will not be productive till the last day of life. As we become old our productivity will come down and we may not be able to earn at least what is sufficient for us to lead a peaceful life. Of course, for government employees, a pension may be given. But there is no pension for a private retired employee. So saving a portion of his income is very essential. Where to keep this saved money. That is what is an investment. These days there are many ways for an individual to invest his money. Everyone has to study various options and based on their need they have to invest. A person who retired should settle for safe instruments to park his money even though returns are a little less. A person who is in service and has money can take some calculated risk so that his money will grow fast. But all should keep in mind that one should not keep all the eggs in the same basket.
    drrao
    always confident


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