What is investment?

Investment is a process of committing to investing resources to gain future benefits. When it comes to money, it is called financial investment such as mutual funds, stocks, FD, RD, etc.

The primary goal of all investments is the same: compromising with present needs to enjoy future benefits.

But why is investment important?

We live in a very competitive world, where the prices of primary resources are increasing daily. To sustain in this world and provide quality resources to your family, investment plays an important role in the long run. At this point, you might be thinking, why investment? I can also save for the same.

So, let’s assume a scenario:

Koushik, a 25-year-old who had recently graduated, landed his first job in corporate. And, as every young fresher thinks and as the Bollywood movies showcase us, society will treat you with good respect if you manage to retire by 40. So, as per his plan, Koushik also decided to save a little bit from his salary each month. By the end of 2 years, he realized with the current bank savings interest of 3%, he could not achieve his target.

So, on one of his friend’s suggestions, he visits PolicyX.com to see more investment options. Policyx.com’s verified advisors help Koushik understand more about investment and provide more insight into how he can achieve the target of retiring at 40. The advisor suggests some plans as below:

• Guaranteed Return Plans
• ULIP Plans

This gives a higher return on investment compared to the bank interest rate, along with fixed insurance coverage for the whole policy tenure.

Types of investment available in the market

India holds multiple investment opportunities. However, it is important to choose one that fulfills your requirements. Several factors help to choose the correct option, such as returns, risk, lock-in period, flexibility and more.

Below are some investment options available in the market-

• Stocks
• Mutual funds
• Real estate
• Public provident funds (PPF)
• Savings and endowment plans
• Fixed Deposit

What are the reasons to invest early in India?

As per the report published in Business Standard, India’s economy will reach 1 trillion dollars by 2030. Apart from the economic growth, India is among the countries that offer returns on your savings over bank accounts.

For instance, we have provided some start investment planning in India:

Conclusion

So now you have understood that investment is the strategic allocation of resources, typically money, with the expectation of generating a return or profit over time. It involves committing capital to various assets such as stocks, bonds, real estate, or businesses, to build wealth and achieve financial objectives. In case you have any more queries regarding investment, or how you can benefit from life insurance savings plans you can contact PolicyX.com.