WHAT IS INVESTMENT? – Mrpinindia

WHAT IS INVESTMENT?

WHAT IS INVESTMENT?

Any INVESTMENT can be explained like any assets which is acquired with the goal of generating income. It has many examples like buy a property , buy a share of any company etc.

There are mainly four types of investments:

Real State.

Real Estate means a business in which a person Buy, Sell or Rent a Property like Land, Building and Offices etc. it is one of the best best business model to invest, In last few years this industry is getting a good growth and generating a good revenue to its owners.

Shares

In simple language Share is a percentage of partnership in any company or in any assets, Investors who hold shares of any company is called Shareholders.

Why invest in shares?

When an investor invests money in the Shares, it has the potential to grow rather than keeping money in a savings account. There are two ways through which you can make money from shares i.e. capital gains and income.

Mutual funds

A mutual fund is a company that brings together money from many people and invests it in stocks, bonds or other assets. The combined holdings of stocks, bonds or other assets the fund owns are known as its portfolio

Why to invest in Mutual Funds?

Mutual funds has low risks than buying shares directly because Mutual funds company’s invest in many different types of securities and shares hence there is low risks

Bonds

A bond is a debt security. Borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time.

Why to invest in bonds

Bonds investment provides an income stream that is easily predictable and in many cases, bonds pay the interest twice in a year. If the bondholder holds the bond till the day of maturity, the investor gets the entire principal amount and hence, these are considered as an ideal way to preserve one ‘s capital

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