Introduction
Investment is a topic that is well-known to most investors, but it’s easy to get confused about the types of investments available and how they work. There are a number of different ways people can invest their money, but one thing is for sure: investment should be done with an eye on the future. This guide will help you understand what makes an effective investment strategy, how you can make your own decisions about where and how much money to put in stocks or bonds, and more importantly: why you should make your investment wisely.
Why is investment important ?
Investment is important because it helps you to build your wealth, it helps you to build your future and it also helps you in building dreams and life. So, why not start investing today?
Factors affecting Investment
An investment is a way of saving money, making money, earning money or working for you. It can be used to increase your wealth and help to build up your assets over time.
Investments are considered safe as they are generally made with the aim of growing in value over time but there are risks associated with them such as loss of capital if the market goes down or if you do not know what you are doing when investing in something like shares.
Liquidity
Liquidity is a measure of how easily an investor can buy or sell an asset without affecting its price. It’s also known as market depth, and it’s one of the most important factors to consider when making an investment.
If you’re considering buying a stock, you want to make sure that there are enough people willing to buy shares at any given time so that your purchase won’t be affected by other investors’ actions—and vice versa for selling shares.
Risk Aversion
Risk aversion is the desire to avoid risk. It’s a natural human tendency, but it can be overcome with education and experience.
The more you know about investments, the easier it will be for you to make decisions based on your own preferences rather than what someone else tells you. The best way to learn about investments is by doing them yourself (or having someone else do them).
How To Find High Volume Stocks
Volume is an indicator that points to the total number of shares being bought or sold in a specific time period or during the trading day. Trading volume helps several investors to examine the trends and patterns in the share market. The information about trading volume is easily accessible and can be found anywhere.
Inflation
Inflation is the rate at which the general level of prices for goods and services is rising. Inflation is a persistent rise in the general level of prices for goods and services in an economy over a period of time.
Remuneration
Remuneration is the amount of money a company pays to its employees. It includes salary, bonuses and benefits.
- Salary: The amount that you are paid in cash or kind (e.g., shares) at the end of each month. This is calculated by adding up all your paycheques over time and dividing it by 52 weeks (the number of working days in one year).
- Bonus: Extra pay given out at certain times during the year based on performance or other factors such as reaching sales targets or hitting some other target(s). This can happen once per quarter or even more frequently than that depending on how well things go for your employer!
- Benefits: These include things like health insurance coverage, life insurance protection against death due to illness etc.).
Investment Avenues
There are a number of investment avenues available to you. These include:
- Bank Deposits
- Stocks
- Mutual Funds (mutual funds)
- Real Estate (Real Estate Investment Trusts, REITs) * Gold & Silver
Bank Deposits
Bank deposits are the most common way to invest. They are FDs, but they are not risk free and they’re not remunerative. Bank deposits aren’t liquid either—you can’t withdraw your money any time you want to (unless it’s within a certain timeframe). And because banks don’t pay interest on their deposits (they only give you a fixed rate), bank deposits don’t offer the same return as other financial instruments like mutual funds or stocks; in fact, they’re usually less than one percent per year!
Bank deposits also carry hidden costs: taxes! You’ll need to pay tax if your bank account grows too large for its size so make sure that doesn’t happen by keeping track of your net worth every month so that you know how much tax will be owed when it comes time for filing taxes next year!
Investing, it’s important to take emotion out of the equation.
Investing, it’s important to take emotion out of the equation. You should only invest in something that you believe in and will hold for at least 5 years. You need to know that your money is going into something that will grow instead of just sitting there doing nothing or losing value over time.
Investments can help you achieve financial freedom and even retirement but they do require some work on your part too! It’s not easy earning more than what you spend each month but if done correctly then it can be done easily by making smart investments along with saving wisely as much as possible while still being able to pay off all debts at certain points in time so no one gets stuck paying late fees anymore (or worse).
Conclusion
Investing is an important part of personal finance. You can take care of your wealth by investing in stocks, bonds or mutual funds. The value of your investment will depend on the type of asset, its liquidity and risk profile. In order to make a sound decision about your investments, you need to keep these factors in mind while choosing between different instruments like equities, fixed income securities and derivatives like options contracts.
