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Certificate in Stock Market and Equity Research

Hanumant Dhokle

1.2 Investment Environment

INVESTMENT ENVIRONMENT ONE NEEDS TO BE AWARE OF

Why should you invest?

Obviously, to earn more money. Investment is a necessity rather than an option. For the average person, investment is the only way he can retire and yet maintain a specific standard of living. By planning ahead you can ensure financial stability during your retirement.

In today's world, almost every person makes investments as s/he needs to meet ever-growing needs and combat the increase in prices. From a college student to a homemaker to a professional such as a doctor, engineer,etc . everyone should know how to make investment work to personal advantage.

There are several reasons why we should invest

• To meet our daily expenses.
• Additional savings that we have planned for the future.
• Availability of funds in excess of what our current needs are.
• To be tax-efficient.
• Pay for foreign trips.
• To own a house or renovate it.
• Availability of new investment options.
• To secure one’s future.
• Child's education and marriage.

Many people fail to plan their investments and find themselves in difficult situations. It is never too early or late to start planning our investments and it also does not matter if we invest a few thousand rupees or a lot more. The important thing is to make investment a habit and do it regularly and also learn the basics of investment so as to make informed decisions when investing our hard-earned money.

It would be advisable to note at this stage that due to the liberalisation process undertaken by India, we are today in an environment where events that take place in other parts of the world have a direct or indirect effect on our economy. This would further affect the specific market and finally would have an effect on your investment decisions. So we need to have broader knowledge to be effective investors.

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