INVESTMENT (PART 1)

WHAT'S INVESTING ?

INVESTING IS A PROCESS OR DISCIPLINE OF SAVING THE SOME PARTS OF THEIR INCOME AND USING IT FOR GAINING A HIGHER RETURN.

INVESTING CAN BE CLASSIFIED INTO 2 CATEGORIES :

SHORT TERM INVESTING - IN THE SHORT TERM INVESTING USUALLY PEOPLE INVESTS THEIR MONEY FOR A SHORTER PERIIOD OF TIME SAY 0 - 12 MONTHS.

LONG TERM INVESTING - IN THE LONG TERM INVESTING USUALLY PEOPLE INVESTS THEIR MONEY FOR A LONGER PERIOD OF TIME SAY 12 - 36 MONTHS.

TYPES OF INVESTMENT :

FIXED DEPOSIT (FD) : FD IS A TYPE OF INVESTMENT WHERE PEOPLE DEPOSIT A CERTAIN AMOUNT OF MONEY WHICH IS LOCKED FOR A PERIOD OF TIME, CHOSEN BY THE INVESTOR. THE INVESTOR CANNOT WITHDRAW THE MONEY ONCE DEPOSITED, HOWEVER HE CAN CLOSE THE FD AND WITHDRAW THE WHOLE AMOUNT AFTER PAYING SOME CHARGES. THIS IS THE MOST SAFEST OPTION OF INVESTING AND SAVING MONEY AND USUALLY OPTED BY PEOPLE WHO WANTS TO PLAY SAFE WITH THEIR CAPITAL AND EARN A LITTLE BIT MORE THAN THEIR SAVINGS ACCOUNT.

TO BE CONTINUED ....(IN BLOG 2)