Next Day Funding – Meaning and its Benefits
In the previous article, we have already studied how commercial banks help in providing point-of-sale services to their corporate customers. We have also studied how point-of-sale systems have become strategically important for corporations. However, they are some pain points in the point-of-service system as well. Commercial banks provide another service called next-day funding in order […]
What are Black Friday Sales and What are its Economic Impact on Retailers
The retail industry has been rapidly evolving for many years. The industry has adapted to a wide range of changes varying from the introduction of online retailing to the widespread use of automation. However, there are some aspects of retailing which have not changed for a long time. Retail companies all across the world still […]
Venture Debt – A Primer
The Fed has decided to raise interest rates steeply. One rate hike has already been announced this year (2018). It is likely that there are many more rate hikes to follow until the year 2020. The cost of capital is likely to go up. In a high-interest rate scenario, investors typically prefer to invest in […]
Applications of Equity Valuation
“Valuation” or the process of assigning a fixed numerical value to the present and potential of a business is considered by many experts to be the most important part of corporate finance and financial markets. The most coveted and highly paid jobs in the financial markets are in this domain. The reason for this is […]
Regret Aversion Bias
In order to be successful at investing, an investor not only needs to have mastery over their numbers, but they also need to have mastery over their emotions as well. In the past few articles, we have already discussed how emotional biases can lead to suboptimal performance in investing. In this article, we will try […]
It is human nature to plan for rainy days. An individual must plan and keep aside some amount of money for any unavoidable circumstance which might arise in days to come.
Future is uncertain and one must invest wisely to avoid financial crisis in any point of time.
Let us first understand what is investment ?
Investment is nothing but goods or commodities purchased today to be used in future or at the times of crisis. An individual must plan his future well to ensure happiness for himself as well as his immediate family members. Consuming everything today and saving nothing for the future is foolish. Not everyday is a bed of roses, you never know what your future has in store for you.
Financial investment refers to putting aside a fixed amount of money and expecting some kind of gain out of it within a stipulated time frame.
Planning plays a pivotal role in Financial Investment. Don’t just invest just for the sake of investing. Understand why you really need to invest money? Investing just because your friend has said you to do so is foolish. Careful analysis and focused approach are mandatory before investing.
Explore all the investment plans available in the market. Go through the pros and cons of each plan in detail. Analyze the risk factors carefully before finalizing the plan. Invest in something which will give you the maximum return.
Appoint a good financial planning manager who takes care of all your investment needs. He must understand your requirement, family income, stability etc to decide the best plan for you.
One needs to be a little careful and sensible while investing. An individual must read the documents carefully before investing.
An individual can invest in any of the following:
Financial Investment ensures all your dreams turn real and you enjoy life to the fullest without actually worrying about the future.
Financial investment ensures you save for rainy days. Careful investment makes your future secure.
Financial investment controls an individual’s spending pattern. It decides how and what amount one should spend so that he has sufficient money for future.
Don’t just blindly trust your financial advisor. Read the terms and conditions and go through all the related documents carefully before signing. Check out risk factors, tenure, clauses etc before selecting the plan.
Avoid cash transactions. It is always advisable to issue an account payee cheque in favour of the company rather than giving cash to your advisor. You never know when he disappears with all your hard earned money.
Carefully staple all the related documents and put it in a folder. Keep it at a proper and safe place. Loosing even a single paper might land you in trouble later on.
Make sure your investment plan is the best in the market and guarantees sufficient return in future.
If you plan to invest in property, ensure it is at a prime location and would have takers in the near future. Investing in non approved properties is worthless.
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