.
INVESTMENT BASICS
WHAT IS INVESTMENT
? Money earned partly spent and partly saved for meeting future expenses.
? You may need good returns for meeting future expenses.
WHY SHOULD ONE INVEST
? Earn return on your idle resources. ? Generate a specified sum of money for a specific goal in life. ? Make a provision for an uncertain future.
INFLATION & ITS IMPORTANCE
? What is Inflation? ? Inflation causes money to loose its value . ? Eg. :- If there was a 6% inflation rate for the next 20 years, a Rs. 100 purchased today would cost Rs. 321 in 20 years. ? An important factor to be consider for a lonf=g term investment. ? Aim of investment should be to provide a return above the inflation rate.
WHEN TO START INVESTING
? Invest early. ? Invest Regularly. ? Invest for long term and not short term
12 IMPORTANT STEPS TO INVESTING
Obtain written documents explaining the investment. Read & understand such documents. Verify the legitimacy of the Investment. Find out the costs & benefits associated with the investment. Asses the risk-return profile of the investment. Know the liquidity & Safety aspects of the investment. Ascertain if it is appropriate for your specific goals. Compare these details with other investment opportunities you are considering or you have already made. ? Deal only through an authorized intermediary. ? Seek all clarifications about the intermediary & the investment. ? Explore the options available to you if sometihing were to go wrong, and then, if satisfied, make the investment.
? ? ? ? ? ? ? ?
OPTIONS AVAILABLE FOR INVESTMENT
One may Invest in : 1. Physical Assets 1. Financial Assets
SHORT TERM FINANCIAL OPTIONS AVAILABLE FOR INVESTMENT
? Savings bank Account. ? Money market / Liquid funds. ? Fixed deposits with bank
LONG TERM FINANCIAL OPTIONS AVAILABLE FOR INVT
? ? ? ? ? Post Office Savings. Public Provident Funds. Company Fixed deposits. Bonds. Mutual funds
doc_942741198.pptx
INVESTMENT BASICS
WHAT IS INVESTMENT
? Money earned partly spent and partly saved for meeting future expenses.
? You may need good returns for meeting future expenses.
WHY SHOULD ONE INVEST
? Earn return on your idle resources. ? Generate a specified sum of money for a specific goal in life. ? Make a provision for an uncertain future.
INFLATION & ITS IMPORTANCE
? What is Inflation? ? Inflation causes money to loose its value . ? Eg. :- If there was a 6% inflation rate for the next 20 years, a Rs. 100 purchased today would cost Rs. 321 in 20 years. ? An important factor to be consider for a lonf=g term investment. ? Aim of investment should be to provide a return above the inflation rate.
WHEN TO START INVESTING
? Invest early. ? Invest Regularly. ? Invest for long term and not short term
12 IMPORTANT STEPS TO INVESTING
Obtain written documents explaining the investment. Read & understand such documents. Verify the legitimacy of the Investment. Find out the costs & benefits associated with the investment. Asses the risk-return profile of the investment. Know the liquidity & Safety aspects of the investment. Ascertain if it is appropriate for your specific goals. Compare these details with other investment opportunities you are considering or you have already made. ? Deal only through an authorized intermediary. ? Seek all clarifications about the intermediary & the investment. ? Explore the options available to you if sometihing were to go wrong, and then, if satisfied, make the investment.
? ? ? ? ? ? ? ?
OPTIONS AVAILABLE FOR INVESTMENT
One may Invest in : 1. Physical Assets 1. Financial Assets
SHORT TERM FINANCIAL OPTIONS AVAILABLE FOR INVESTMENT
? Savings bank Account. ? Money market / Liquid funds. ? Fixed deposits with bank
LONG TERM FINANCIAL OPTIONS AVAILABLE FOR INVT
? ? ? ? ? Post Office Savings. Public Provident Funds. Company Fixed deposits. Bonds. Mutual funds
doc_942741198.pptx