1.1 What Is Investment?


If the foundation is firm it can withstand all the vagaries of an economic scenario. This is a universal truth. The initial chapter provides an insight into the very concept of investment. This provides the minimum common learning base for everyone. Once it is done, in the further chapters we have mainly touched upon the practical angle rather than the theoretical. Multiplying money is not an easy task. It is an art.Mastering this art takes time and real hard work. To make your learning process easy we provide the necessary guidelines in the simplest possible way.

Make your money work for you! Best Wishes and Happy Learning!

How to realise one’s dreams? Money is the answer. But how to make money is the real challenge. In today’s world everyone is concerned about making both ends meet. Uncertainties like increasing prices, changing lifestyles, pink slips, health problems etc……..there are plenty of such concerns. To maintain our status in society we have to match our income with expenses. That apart, the future is bleak and one should plan for the rainy days too. Just saving is no answer. One should be able to save in such a way that it multiplies on its own. And that is investment. You need to plan to make your money work for you and then ‘relax’ for the rest of your life.

There are many options open to us to invest our hard earned money. However, there is always the possibility of making a wrong choice which may lead to reduction of our investments. In today’s world, where it is easy to acquire simple and practical knowledge, there is no excuse if we do not learn about the various investment options and their ability to meet our needs. We all know that there are no guarantees in this world and there is always a factor called risk which may upset our plans. Just as sudden rain may upset our plans to go for a walk, risk can reduce the returns we are expecting from our investment. We, therefore, need to acquire sufficient knowledge to be more informed investors.

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