What is Investment?




Investment means putting money into one or more asset for particular period of time that will bring greater wealth and return in the future.India presents a vast potential for investment and is actively encouraging the players to put money into different options of investment.In today's world it is difficult for any person to meet growing needs and requirements.However money has time value associated with it.  
      
 Investment objective of working person who are in his 30's will be different from the one who is in his 60's after his retirement. Young person are able to take high risk as compared to the retired person.Each investment has its own strength and weaknesses.Some provide superior return  but with certain risk e.g. Equity, other provide safety but at the expense of liquidity and growth. e.g. PPF. Therefore it is important to do investment of money with proper analysis of requirement and expectations of Investor.There are many assets available in India in which investment cab be made,some of them are:

Investment Options available in India:

1. Non marketable financial asset such as Bank Deposits, Post 
    office scheme, company FD's, PPF.

2. Equity shares

3. Bonds

4. Money market instruments such as T-bills,commercial paper, 
    certificate of deposit.

5. Mutual funds

6. Life insurance

7. Real estate

8. precious objects such as Gold,Silver,Diamond.

9. Financial derivatives such as Options ,Futures.