Thursday 31 March 2016

Good Investments-Need and Benefits of good Investments

Good Investments...A smart way to live. Meaning and myth of Investment and a Good Investments: For a common persons point of view, Investment means spending money on buying some product, services, land etc, with an intention through which a person can yield not just normal profits but better profits and better returns in future. Normally people take investments as a means of fulfilling the main motive not to earn just small profits in near future, but a big profit after a long time gap.

That time gap can be of five, ten, twenty years or even more than that. But with the passage of time this concept is getting clear to the people that in the long run the value of the money also decreases. The result is the so-called big profits in the long run are just because of the devaluation of the money due to inflation and other factors, and the profit thus is just the normal one as compare to the price index of today than years back. The good investments are those which are not dependent on time gap, instead they yield bigger returns at any stage of time in the coming future. The coming future means within few days and few months and even in a year or two. Today a number of investment opportunities are available in the market. The need is just to recognize the best suitable one for us, which promises to give better returns in near future. Here the best suitable one investment means the one, which a person can invest on. For instance every one cannot invest in buying a big chunk of land, because not every one has good power to save enough to buy big piece of land. Marginal propensity to save and to invest differs with person to person. So the amount on Good Investments may vary, but the selection of the better opportunity should be availed.

Need and Benefits of good Investments:

 The need of making Good Investments arises because of the many factors responsible these are as follows.

1. Extra money with the person with no usage.

 2. The identification of the rising demand of family in future resulting in increase in expenditure.

 3. Good investment opportunities available in the market.

 4. Less time to manage the money in more profitable deals.

5. Securing future for himself/ herself and the family.

Therefore the need of investment rises so as to meet the future possible expenses and securing the family and the person financially. The benefits of the good investments are numerous. Some of the benefits are as follows.

 1. Financial position in the future gets secured.

 2. Good returns are made from the unused extra money.

 3. Mental tension regarding finance decreases.

 4. Less time is consumed in many cases.

5. The person can dream of a better future.

 6. Assets for the lifetime are made.

7. Prestige in the society maintains even after retirement.

 8. Living and other expenses can be fulfilled even after leaving the job in future.

Thus it is clear from the above stated factors that good investment are taken as a tool to help the person in meeting expense and getting better returns in future. Various opportunities: A number of good investment opportunities are available in the market. Gone are the days when people were asked to invest for ten years or twenty years.

A short-term good investment opportunity is the deals of today. The various good investment opportunities are as under.

Unit link insurance plans: 

New investment opportunities like that of unit link insurance plans are for three years or so. And after that it is left to the person either to take the decision of continuing the investment or not. Where as the life coverage continues for as long as the person wants to continue The life coverage includes the critical illness and along with that accidental death coverage also joins the policy.

Mutual funds:

 Mutual funds normally help in getting better returns than just savings account of the bank gives. In mutual fund the money of the people is used in investment in share market and other government project which gives better return. People can take any plan to enter investing in the mutual fund. That can be either one time investment plan or Systematic investment plan wherein a small amount is invested after a fixed interval.

Land: 

The oldest and the most popular method of good investment are investing in land. As with the passage of time the value of land increases. But the investment needed in buying land is so much that not all the people can afford it. Also the drawback of this investment is that this does not promise to give cash instantly when a person needs it most. Reason being it takes time find out the buyer, make deal and sell at good price. Thus it is always suggested that even though the buying of land at a good place may proves to be a good investment in future, but only those people should invest in land that are left with good amount of extra cash even after buying the land.

Shares and stocks:

 Buying shares and stocks has become a common phenomenon these days. People are now moving towards investing towards buying stocks of the various companies. As the return from them can vary from much high too much low as possible. Thus only those people should invest in stocks that have complete knowledge and good experience of trading. They are the only one who can make good profits from investment in stocks. The inexperience or no knowledge people may find their investment in a loss making or not so good moving stock. In a nutshell, the good investments are those, which promise to give better return, after removing the myth of long time gap. The need of good investment rises because of the various factors responsible. And in the present world a number of Good Investments opportunities are available in the market; the need is just to select the best one for us.