Investment is a common word now, but the power of investment is very unusual. investment is a life changing moment for lot of people.
Why Investment is a key of Success.
In the present scenario investment word used by everyone but nobody decide how they can invest their money in a profitable area. where their capital grow very consistently. Investment in a right time makes your whole life change, that’s why people called it is a key of success.
Where we need to Invest
In this time investment have variety of fields. where different level of returns and risk. such as stocks, bonds, mutual funds, and real estate and investment in startups is a immerging market .so our focus in this article on these topics.
you all know about Warren Edward Buffett who called an American business magnate, investor. he prove that if your investment area is right then nobody can stop you to grow vary fast. before starting we have to know that every fields have their positive and negative aspects. where investment have brightest future in other way if your investment guide’s is wrong then you have to pay for it.
So first step of investment is capital distribution.it means if you have 1000 $ to invest then you have to distribute it different investment targets. because every field have their own risk and return levels. for example stock market very volatile over the time it can give you highest return in future and Govt bond have low return but high security with minimum risk. so before starting we have to know about how what are assets.
Stock
It represent any company and Govt undertaking units who listed their share in a form of stocks. Stock market also work on high risk and low risk stocks. corporate world stocks very vulnerable in nature if the company profile is new it can give you 3000% of return in 2 months and Govt stock very reliable and low vulnerable and low return compare to corporate stocks.
Bonds
Bonds are very reliable and low risk and low profit. its basically used by govt to control inflation. We can say that bonds work in control inflation of country. for example if liquidity of currency is high in market then inflation rate goes high. In this situation govt issue bond for a specific time and decent rate of interest. we know that bonds are reliable so people buy this bond and currency goes to govt treasury who control liquidity in market and inflation rate also.
Types of Bonds
Bonds basically two types.
1.Short Term Bonds– This type of bonds very short time in nature if govt facing high inflation then control to this situation govt instantly release short term bonds.
2.Long Term Bonds-Govt mostly work on long term bonds. Govt use of capital in different sectors development.
Mutual Funds
Mutual fund is also very popular investment term. mutual fund work on Investment in investment rule. means when we purchase mutual fund investment plan of any company. then the whole capital company have invest it in different sectors like stock, Govt bonds, Loan where they can increase their capital.
so basically mutual fund gives you two types of return low and high. suppose we buy a bank mutual fund plan if the capital of this plan bank investing in stock market. then the risk of plan high and return is also high. If bank invest capital of this plan in govt securities then risk low and return low.
Real Estate Investment
Real estate is a evergreen investment plan if your choice is good and reliable. we can say that its like a fix deposit plan but some maintenance required in time to time in this field of investment,but its a good open for regular growth.
Now we know about how we select out investment plans and where we can invest, before investing we have to sure about these things which is followed.
How Reliable Investment
First of all we have to go through about stocks where we want to invest. what is the present cost of stock, how stock perform in last several years. what is the low level and high levels of stocks. vulnerability of stock.
Return from Investment
Second thing how stocks return in last year. what is the potential of stock. if stock have potential to grow fast and consistently giving higher return and field of stock is evergreen then we can select them.
Instant growth Stock
Now most useful thing is new startups or corporate companies who entering in stock market.so our main focus on should be on these companies. this is very important part of investing if you want instant 1000% growth. if your vision is to the point you can earn a high return.
in our next article we gives you how you can do above things. whole directions for you to become a successful investor stay tuned.
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