Importance Of Investments
What is investing?
Investing is about using your money to make more money. You could invest by buying different financial assets and financial instruments that have the potential to appreciate in value over time. These benefits could be in the form of rise in value of the asset or instrument or a time-to-time payback from the investment.
There are many different financial assets and instruments in which you can invest money for it to grow in value. So, when you put Rs 10,000 in the bank and it earns 3% returns annually; your deposit of Rs 10,000 becomes Rs 10,300. Likewise, it is possible that your investment in the stock of a listed company at Rs 120, it may go up to Rs 127 two weeks or six months after you make the investment. The growth in value of the investment depends on several factors and the time the money you invested stays invested.