What is investment?
What is investment?
Investment is the job of this Financial World in which your money is invested in a place from where more money can be made.
Friends, depositing money in a bank is not just an investment. Investment means making money and another money, that is, income.Simply put, the use of your money to get income is called investment.
Whenever we use our money for the purpose of getting income or profit in the future, this use of money is called investment.
For example, if we buy a house for the purpose of renting it and we get income, the use of money to buy a house is called Investment
Similarly, if we buy a stock for the purpose of selling it in the future and we get INCOME as dividends, then the use of money to buy stocks is called our Investment
INVESTMENT AND ASSETS
The investment in our balance sheet is placed in the property column so we can say that Investment are our assets from which we get income
Investing is a process in itself and in other words a property that Investing the process of buying to earn income or profit in the future.
Investment is a long term process most investments don't give immediate
benefits We have to wait to grow Investment Value after investing or to profit from investment .
For example, if we make a fixed deposit in the bank, we have to wait till the lock-in period of the fixed deposit, then we get the benefit from that fixed deposit.
RETURN ON INVESTMENT (Profit from Investment)
We have seen that investment is a Continue Process that is made to get Income or to earn Profit, the money invested in the investment is called our capital.
And the profit or loss of investment is called Return on Investment(ROI),
ROI = Total Value of Investment – Investment Value
Here Total Value of Investment, our investment has a Current or Future Value, and Investment Value is our money invested.
For example : If we get 200,000 in 5 years on a fixed deposit of One lakh rupees , our Return on Investment (ROI ) will be Rs. 1 lakh .
RIO is not necessary to always be positive
Sometimes ROI can be negative, if the reason for the increase in Total investment Value decreases.
For example, if we bought a share of Rs. 100,000, which reduces to ₹90,000 instead of rising, we lose ₹10,000, that is, we get 10% Negative ROI.
INVESTMENT SCAM (QUICK RICH SCAM)
There are a lot of companies in the market that bring in very good Investment schemes, and by offering a lot of profit on investment, we deposit our hard earned money with them, and a lot of them disappear later, and that's how our Hard Earned Money sinks.
Therefore, it is important to Invest your Hard Earned Money in the right place
QUICK RICH scheme is a scheme formulated by some fraudsters and fellow people for the purpose of taking money from people by assuring them to become rich at the earliest, double the money quickly and later disappear from the market, beware of such companies and get as much information as we can before any investment.
Finally
INVESTMENT is the art of making money from money, and if you want to make money from money then this art needs to be learnt.
Investment because money is linked and no one wants to lose money, and in such a case, if investing without good investment information becomes a Risk task and in such a situation, investment increases the chances of loss rather than profit, so you must get good information about investment before investing so that you also learn to make it from money and get financial freedom ,
Hi , This is Pramod Choudhary from Nagaur Rajasthan India. I an student and I would like to share my positive thinking with everyone that's my passion . Thank you
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