Let’s know about the investment and its types. Here we are with a conversation between friends about investment.
Characters of this are Dipesh, Aditi, Rumi and Uday.
One day all four friends came from school and had a group discussion in a call so suddenly Dipesh asked about that, is there is anyone who know about investment.
Aditi: Yes, I have little knowledge about what is investment.
Rumi: Really, if you know what is investment so tell about it?Dipesh: Can you please tell this with an example to clear this definition properly.
Aditi: Yeah sure, suppose that you can buy equity stock of a listed company in the hopes of receiving regular dividends and capital appreciation in the form of shares.
Equity: long term financing source for a company.
Dividend: a reward, cash or otherwise, that a company gives to its shareholders.
Share price: the price of a single share of a number of saleable equity shares of a company.
Uday: That’s great but do you know about types.
Aditi: Not much but yes as I told you that investing your money in stock exchanges for buying the equity is a type of investment with higher level of risk and profit.
Rumi: Real estate is also a type of investment where buildings and properties as an assets purchased by a person with minimum risk and good return but for doing this investment you need to have a huge amount in your pocket.
Dipesh: Guys have you heard about mutual funds in TV ads I saw about this where you have to invest your money and get interest upon it but it is risky if one does not have a good knowledge about when and how to invest in this.
Aditi: Investment is of many types investing in gold and in public provident fund which is tax free is also comes under investment.
Uday: But why people invest their money by taking risk what is the objective behind it.
Dipesh: Don’t you hear what Aditi told about investment it grow our savings.
Rumi: It not only grows but also works as safeguard of money and also builds funds for emergencies.
Aditi: It secures retired life and yes if you have bigger goals for your life investment make this possible.
Dipesh: Now I think that I should also work more hard and start investing my money to fulfil my all desires I have.
All friends decided to invest. And here the discussion gets over.
NOTE: Investment is essential to grow your money and create wealth. It will help you achieve your life goals. There are many investment options in India.
And all have to understand the purpose, risk and reward associated with them. Pick an option according to the investment aim and needs.
Thanks for reading!!!
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