Investment: Start early

We should start early in the matter of investment. Investment should start when we receive our first salary.

The process is simple. Save first to invest. If we start early, a SIP of a small amount for a long time is enough.

We can start a SIP in the mutual funds or shares. A weekly, monthly or quarterly or yearly SIP in mutual fund can be planned and a fixed amount will be debited from the bank account on a fixed date.

SIP in share is different as the price of share varies everytime and every day.

Finally, invest early to retire early.

Investment: Diversification

Do not put all the eggs in a basket.  It means do not put all the money in a single investment. Here comes the diversification of investments.

Investing is as important as its diversifying. Plan the combination of four or five types of risky and non risky investments first and invest.

Young investors can take more risk than elderly investors. Young investors can invest majority of their investments in mutual funds and share market while elderly investors can take less risk concentrating more in investment plans with fixed return.

Investment: Insurance

Insurance is considered as investment as it is done to insure one's life. Term insurance gives us no return but the nominee gets the insured amount on the death of the insured.

Policies like endowment and money back are taken with the expectations of return in the forms of bonus and loyalty. The insured gets the insured amount with bonus and loyalty if any at maturity. 

Three generations have faced pandemic:

Three generations have faced pandemic:

Our parents during last part of their lives,

We during later part of our lives,

Our children during initial part of their lives.

Three generations have faced pandemic:

Some have fought till the last breath,

And the rest are fighting with the remaining breath.

Three generations have faced pandemic:

The world has never been the same before,

The world is never the same now,

The world will never be the same after

Three generations have faced pandemic.

Investment: Government securities

To raise funds to finance important projects and budget deficits, government issues government securities (G-SEC)  or treasury bills (T-Bills).

The return is fixed and secured and usually better than the fixed deposits.

Moreover government securities are reliable and investors get a good return when there is financial crisis and other investments are not doing well. 

Investment: Other fixed deposits

Investors can invest in companies, financial institution and non-banking institution for a certain period. These companies and institutions pay higher interest to the investors.

Investing in the fixed deposits by the companies and non-banking financial institutions is not easy as the minimum investment amount is higher than the fixed deposits by the banking institutions.

Investment: Gold

Investing in gold is a safe investment. Commonly, we invest in gold in the form of jewellery. Gold in jewellery form has the issue of storage. Banks provide storage facility which is chargeable. There is also making charge in case of jewellery.

We can start a Systematic Investment Plan (SIP)  in the gold funds from mutual funds. Mutual funds save us from storage and making charges.

Additionally, we can invest in ETFs. We must open a trading and demat account with a SEBI registered broker to invest in a gold ETF.

Government issues gold bonds for the investors who are looking for a long term investments. In sovereign gold bond,  investors get a declared interest in return per year till the maturity of the bond along with the maturity value. 

Investment: Shareholder and dividend, bonus and split of shares

When we invest in a company and buy a share from the share market, we become a shareholder for the company.

We are then entitled to a share of the profit or loss of the company. The management of company can declare dividend, bonus share or split of share to reward its shareholders.

Share price moves up and down during the trading session and varies according to the performance of the company. Price appreciation is also the return against the investment for the investors. The shareholders can book the profit against the investments anytime or continue to hold the share for a longer time. 

Investment: Shares & ETF

Investors have the option to invest in company shares or index exchange traded funds (ETFs).

We can invest in the shares of the companies listed on BSE and NSE. Index ETFs like Nifty ETF, Sensex ETF and Nifty bank ETF are also available for the investors who do not have knowledge about the share market. Other ETFs are also available for investors to diversify their portfolio.

Investment: Investing in Share Market

Before investing in share market, we must open Trading and Demat account.

Trading account is used to buy and sell the shares while Demat account is for storing the shares. Trading account is opened with a SEBI registered broker.

Once the trading and demat account is opened, we can place an order after transferring an amount in the trading account from a linked bank account. A buy order or a sell order is placed to buy or sell shares.

Day trading is buying the shares for a single day. The shares are sold before the close of the trading session of the day. And a delivery is buying the shares to hold them for a time period. The shares are sold when the shareholder places a sell order.