Investment
Investment is most effective way to achieve financial goals. Generally people use the saving and investment both as same. But both are not as so. Saving is the process of putting a portion of earning aside for future need. While investment is the use of saving to getting return on it. Investing is using of saved money to buy capital goods. Therefore we can say that investment is the process of getting return on saved money, in the form of capital appriciation, interest, rent, profit, dividends etc. An interest calculator is given below. You can calculate simple interest as well as compound interest with this calculator.
Return on investment is always associated with risk. If investor expect higher return, should ready to greater risk
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Various Investment Options
Investment is a device of earning. It works as a loyal employee to an investor. Return on investment is earning of investor. You can increase earning by increasing investment. Return of investment is always associated with risk. Investment should be according to the need of investor. There are various investment options available. Some of them are given below :
Investment with Banks
You can invest with banks in form of:
* Saving Account
* Fixed Deposit
* Recurring Deposit or Monthly Deposit Scheme
* Monthly Income Scheme
To know more about function of banks, please read Banks and their Functions
Investment with Post Office
You can invest with Post Office in form of:
* Saving Account
* Fixed Deposit
* Recurring Deposit or Monthly Deposit Scheme
* Monthly Income Scheme
* National Saving Certificate (NSC)
* Sukanya Samriddhi Yojna
Investment with Life Insurance Companies
Life insurance companies provide risk coverage with return on investment. The return of life insurance companies are tax free and premium is applicable for tax rebate (as per Income Tax rule-currently limit is up to Rs. 1,50,000 )also.
To know more about Life Insurance, please read What is Insurance
Investment with Public Provident Fund (PPF)
Public Provident Fund is good capital appreciation instrument. The return of PPF is tax free and yearly contribution is eligible for tax rebate (as per Income Tax rule-currently limit is up to Rs. 1,50,000 ).
If you want to know about model portfolio Know More about Model Portfolio