Basics

Basics of Finance
Why must I invest?

Making investments can help you grow your money and meet financial goals.

Investment is the process of putting your money in one or more instruments in order to benefit from the increase in value of that instrument in the future. In short, it is a method of growing wealth by putting your money to work. Here are a few reasons why investing may be a good idea for you.

Investment is the process of putting your money in one or more instruments in order to benefit from the increase in value of that instrument in the future.

Grows your wealth

Investment instruments are designed to grow your money in a systematic manner. Whether it is high-risk products like stocks or low-risk options like fixed deposits and bonds, most options provide decent returns in the long term. Such investments provide you an opportunity to put your money to work and grow it.

Helps beat inflation

Inflation is the rate at which the price of goods and services increases every year.If your money is stored in a safety vault, it starts losing value, as you would be able to buy less goods in the future due to rise in prices. You can grow your money by investing it in various products, and beat the effect of inflation.

Helps manage unexpected expenses

Emergency situations and unexpected expenses might arise at any moment. Instead of borrowing during such crises, it is wise for be prepared in advance. Investing inculcates the habit of saving regularly, and accumulates a corpus over time, which can be utilized to meet unexpected expenses.

Assists in achieving long term goals

There are several long term goals that every individual wishes to achieve. These may include buying a car/house, getting married, educating children, a care-free retired life, etc. However, meeting these goals requires funds. While earning through employment or business is one way of gathering funds, investing regularly will help you build a corpus to fulfill these goals.

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