Finance Functions – Investment, Financial, Dividend and Liquidity Decisions
The following explanation will help in understanding each finance function in detail Investment Decision One of the most important finance functions is to intelligently allocate capital to long term assets. This activity is also known as capital budgeting. It is important to allocate capital in those long term assets so as to get maximum yield […]
Types of Fixed Income Securities
When the term “fixed income securities” is mentioned, investors immediately conjure up images of bonds in their heads. However, this is a generalization on the part of the investors. In reality, fixed income securities can refer to many different types of securities. As an investor, one must be aware of the wide range of securities […]
The MasterCard Visa Duopoly
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Omnichannel Retailing and its Benefits
The past few years have witnessed the rise of online retail. As a result, there has been a persistent debate about whether or not brick-and-mortar stores have outlived their utility. There are many critics who believe that this may not be the case. Even though online retail has significant advantages, it still lags behind traditional […]
The SPV Structure in Infrastructure Finance
The Special Purpose Vehicle (SPV) or Special Purpose Entity (SPE) is one of the most used tools in infrastructure financing. It doesn’t matter whether the project is being constructed by a private company, a public entity, or in a public-private partnership. In most cases, special purpose vehicles are created for every infrastructure project. In this […]
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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