Basic Knowledge of Investment
Investment involves risk on the hard earning money of Investor so they should have the basic knowledge to manage there funds if they can not manage at least they should have the knowledge to follow up there portfolio manager.
Basic knowledge is always necessary in every thing.
As Investment is a big decision because it may impact the social life of a person so there should be always knowledge about Investment.
The basic things arehow to invest and where to Invest?.
There are many Investment avenues are available for Investor like Life Insurance,(ULIP plan), mutual fund, Equity market, Bank deposits, Commodities, Physical Gold or silver purchase, Real estate and many more.
But If an Investor does not have any basic knowledge they will be getting confused and will mis utilize there money,by investing in wrong avenues.
Basic Things an Investor should know.
Investor should first know what is his surplus money or what is his money having in hand to invest?
He/she Should know the time horizon for the investment, so that in need he/she can avail the money .
He should pre decide the return amount and should limit the satisfactions with the return.
How much risk can take as High risk takers can Invest in equity market and low risk investor can invest in Bank deposits.
By having these 3-4 basic ideas one can decide on his own how to invest the money and where to invest the money.
If some one is investing in equity market also pre decide till what extend he can accept the loss or else there is chance to get bad debt in market.
Investment does not mean always growing the money some time it means the safety of money and safety of the future so investor should understand the needs of Insurance and Health Insurance to secure the future.