What is investment? Finance Capsule -1

What is investment? Finance Capsule -1

Basically, Investment is a wider term.

It's not only related with holding shares, but it actually means more than that.

Investment is a way to make returns. 

Returns are the upcoming profit. Investing is the process of diversifying money and generate portfolio income. Investing in manufacturing in factories, in real-estate and many other things.

Returns can be dividends on investment and by selling investments. It is the buying of shares on undervalue and selling on overvalue.

An Investor, when bears more risk than gets more returns, less risk, less returns. It is very important to study about the object before investing. 

Knowledge of the object always gives a secure feeling. new person in stock market should follow only one strategy and diversify portfolio. 

Warren Buffet and Benjamin Graham are some example of a valued investor. It is risky we can get a significant profit or significant loss from the investment. 

Investment needs patience. One should prepare for unexpected loss. Don't invest before studying about the share.

Happy Investing!!! #rideonfinance