Investment Or Saving ?
- Thread starter Viictor
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Re: Investment Or Saving? Why?
Saving refers to simply accumulating your money, whereas investing essentially means using existing wealth to earn more wealth.
I would prefer Investing. Investments is done for needs which have a relatively longer time horizon. It means to make a long-term commitment of putting money away and letting it grow. This involves risk, such as the occasional downturns in the market; however, over the long-term those dips are expected to smooth out into an overall upward growth pattern.
Saving refers to simply accumulating your money, whereas investing essentially means using existing wealth to earn more wealth.
I would prefer Investing. Investments is done for needs which have a relatively longer time horizon. It means to make a long-term commitment of putting money away and letting it grow. This involves risk, such as the occasional downturns in the market; however, over the long-term those dips are expected to smooth out into an overall upward growth pattern.
DilipPurohit
Dilip Purohit
Re: Investment Or Saving? Why?
For this thing Insurance is best which provide Investment+Saving, as we discuss about the already Insurance.
Insurance is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, many are not aware of its advantages as an investment option as well. Insurance products yield more compared to regular investment options, and this is besides the added incentives (read bonuses) offered by insurers.
In life insurance, unlike non-life products, you get maturity benefits on survival at the end of the term. In other words, if you take a life insurance policy for 20 years and survive the term, the amount invested as premium in the policy will come back to you with added returns. In the unfortunate event of death within the tenure of the policy, the family of the deceased will receive the sum assured.
Now, let us compare insurance as an investment options. If you invest Rs 10,000 in PPF, your money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this case, the access to your funds will be limited. One can withdraw 50 % of the initial deposit only after 4 years.
The same amount of Rs 10,000 can give you an insurance cover of up to approximately Rs 5-12 lakh (depending upon the plan, age and medical condition of the life insured, etc) and this amount can become immediately available to the nominee of the policyholder on death. Thus insurance is a unique investment avenue that delivers sound returns in addition to protection.
For this thing Insurance is best which provide Investment+Saving, as we discuss about the already Insurance.
Insurance is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, many are not aware of its advantages as an investment option as well. Insurance products yield more compared to regular investment options, and this is besides the added incentives (read bonuses) offered by insurers.
In life insurance, unlike non-life products, you get maturity benefits on survival at the end of the term. In other words, if you take a life insurance policy for 20 years and survive the term, the amount invested as premium in the policy will come back to you with added returns. In the unfortunate event of death within the tenure of the policy, the family of the deceased will receive the sum assured.
Now, let us compare insurance as an investment options. If you invest Rs 10,000 in PPF, your money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this case, the access to your funds will be limited. One can withdraw 50 % of the initial deposit only after 4 years.
The same amount of Rs 10,000 can give you an insurance cover of up to approximately Rs 5-12 lakh (depending upon the plan, age and medical condition of the life insured, etc) and this amount can become immediately available to the nominee of the policyholder on death. Thus insurance is a unique investment avenue that delivers sound returns in addition to protection.
dimpy.handa
Dimpy Handa
Re: Investment Or Saving? Why?
Before you begin your journey towards investing, it makes sense to have an amount equal to 2 (or more) month's salary for unforeseen circumstances like a personal crisis or unexpected unemployment. You can then plan toward reaching your goal. If an investor aims to buy a car for Rs. 10 Lakhs in 2 years, he needs to invest in a plan that allows him to invest a certain amount of his salary every month in investment plans that can give him enough returns to garner the said amount; in this case it could be equities which have been known to give higher returns in a relatively shorter time-frame. However, please read the chapter on Risk and Asset Allocation, before you take your investment decisions
Before you begin your journey towards investing, it makes sense to have an amount equal to 2 (or more) month's salary for unforeseen circumstances like a personal crisis or unexpected unemployment. You can then plan toward reaching your goal. If an investor aims to buy a car for Rs. 10 Lakhs in 2 years, he needs to invest in a plan that allows him to invest a certain amount of his salary every month in investment plans that can give him enough returns to garner the said amount; in this case it could be equities which have been known to give higher returns in a relatively shorter time-frame. However, please read the chapter on Risk and Asset Allocation, before you take your investment decisions
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vardhanvishnug
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Re: Investment Or Saving? Why?
invest ur savings in such a way that they should increase with the progress of time
invest ur savings in such a way that they should increase with the progress of time