Investment: Now is the right time

We need to start our investments as early as possible. Now is the right time to start the investments if we are earning.

We should create a diversified portfolio to minimize the risk involved in investing. We can invest in Fixed deposits, recurring deposits, gold, government bonds, mutual funds and stock or any combinations to create wealth.

Once we have created a portfolio, it will start generating incomes in the forms of interests, dividends and capital appreciation. The financial portfolio will reach to a stage of it being working hard for us to cover our monthly expenses too.  

Investment: Long term plan

Once we have decided for long term investment plan, do no change it. Keep the plan unchanged for a very long period of time, if our selection is good and correct. Review the investment portfolio regularly and make necessary changes in the portfolio and continue as planned.

Except the investments giving the fixed return, all others are subject to market risks. The market will be volatile and accordingly the portfolio would give positive or negative return in the short term. But in the long term, the return would be in favour of investors.

The investments like gold and equity shares can be transferred to next generation too. 

Investment: Passive income

There are 2 types of income:
1) Active income
2) Passive income

Active income needs our physical presence like employee and self-employee. We may not earn if we are absent. Our salary is deducted when our paid leaves are exhausted.

Passive income does not need our presence. Our absence does not affect our business and investment.

We can earn bonus, dividend and interest from our investments.

Investment: An asset

Is investment an asset?
Yes,  if we are investing for a long time. If it is not consumed too early, our investments are the assets. Like land and house are hold for a long time.

Investments like shares, mutual funds, gold,  bonds, retirement savings are assets. These assets can be held for the longer time. The ownership of these assets can be transferred from generation to generation till they are sold to change the ownership.

These assets are such that if one does not own it,  another will own it.

So we must hold our investments as long as we can and enjoy the growth our assets.