Do you know your investment!

Do you know your investment !

Investing is not only about money, but it is also about your emotions and hard work. If your investment is not fruitful and rewarding then you would not be motivated to do more hard work. A good and successful investment is like another earning member in your family who will take up your money, make your money work, and give you long-term returns.
Investment is like buying today and consuming tomorrow, with an increase in quality and quantity. In other words, protecting our future and creating wealth.

The purpose and meaning of investing can be different from person to person and profession to profession. Like the person earning 50k in a month, would be having a different investment objective, then the person earning 25k. Even their responsibilities would also play a vital role in investing, depending on their conditions, maybe the person earning 25 k is not having any major responsibilities while the person earns 50k may have a big family and their responsibilities.

Their debt taking habits will also affect their investment portfolios. 

Many of us lose our hard-earned money because of the wrong decisions made in the light of earning so fast and becoming rich tonight.

I have seen whenever any investment firms or banks or any financial institution shares any investment plans with us than our first question is " in how much time our money would be doubled", we only wants to know that in how much time our investment would be twice or thrice. Friends, have you ever think that, if doubling the money is so easy, then why these organizations are running and why their employees are working so hard to earn for their livelihood. Why they just not take money on interest and double their amount so easily? Just give a thought over that before proceeding further.

My motive is very simple here, I just want to make all of you aware, especially today's youth, that put your money wisely and safely.

I don't understand, why we need to learn hard way by losing our hard-earned money. I personally lost so much money, then I understand all these things and I promised myself that I will try my best to save the others from losing their money. Understanding of investment is not hard but vast and requires a lot of patience.

This is the problem of our education system that every school and college are telling us how to earn money, but no one is telling how to increase it, how to ask money to do work for us and how to make money productive and convert it into wealth.  

In today's world, we have hundreds of questions and so many confusions about advertisements, as everyone is saying I am the best. So how to decide what is best?

There are 7 questions, on which we have to work upon to safeguard the interest of investors:

1. Where my money is safe?
2. How much return I am going to get?
3. Who will manage my money?
4. Which investment option is better? Fixed deposit? Or the stock market? Or mutual funds? Or the post office? Or bonds?
5. How much should we save?
6. How much reserves we should create for uncertainties?
7. What should be the tenure of our investments?

An Investment is an operation on which we have to do a thorough analysis before reaching any final decision and thorough analysis explained as below:

• Analysis of the company in which you are interested to invest if you want to with equity.
• Analysis of risk and rewards scope attached with particular kind of investment option, say you want to invest in real estate then you should aware of all the dark marks of that.
• Do not put all the eggs in one basket, do not go with only one option for all of your investment as it can be risky. Diversify your investments to minimize the chance of losing your money.
• Check your risk appetite, the capability of tolerating risk defined as the risk appetite. Your investment profile would vary as per risk tolerance capability.
• You have to look for adequate performance investing tools, not for extraordinary ones.
•  Be honest with yourself in terms of following others without thinking about their own limitations and financial backgrounds.
• Beware from your nightmares, remember you are among your worst enemy in terms of greed. Do clear your investing goals both for short-term and long-term and work accordingly.

Stay Away from the temptation of colleagues/ friends/ relatives/ brokers...

"Friend, I have invested my money with so and so company/broker and I have earned 10,000 in a day".

We listened to such things very often from our colleagues or friends, During the bull market of equities, these statements are very commonly listened but do not get tempted with such things as you don't know where he invested and his risk appetite is totally different from yours. In fact, your friend will never tell you when he lost 20,000 in a day because sharing achievements give you fame and pride, on the contrary, sharing failure makes people ashamed. Always try to see both ends of the coin that if you can earn 10 in a day then why can't you lose 20 in a day, to protect that 20 you don't get tempted with 10.

Making big money and make your money big are two different aspects, Making big money cannot be done daily but if you make your money big then you will become bigger and bigger.

Temptation from brokers

Brokers are those who take brokerage charges from you as well as from the company for whom they are working, Few brokers have their own firms but few of them works for one or more company.

Do not ever trust any broker or brokerage house to earn instant money or for any long-term investment because they are not working for you but they are just working for their own money which they received in terms of brokerage. You face loss or profits he doesn't bother about it, he always sits on profit as he will be getting his cost in any way.

Who so ever is reading this blog I am requesting you to please give a thoughtful insight over your investment once again and check the mistakes you have done earlier.

The intelligent person is not only who learns from their mistakes, but this is also the one who learns more from others' mistakes.

We will be going to discuss a very wide range of things and all of this material is for educating purposes only to safeguard the interest of investors.