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INVESTMENT BASICS
 WHAT IS INVESTMENT
• Money earned partly spent and partly saved
for meeting future expenses.

• You may need good returns for meeting future

expenses.
 WHY SHOULD ONE INVEST
• Earn return on your idle resources.

• Generate a specified sum of money for a

specific goal in life.

• Make a provision for an uncertain future.

 INFLATION & ITS IMPORTANCE
• What is Inflation?
• Inflation causes money to loose its value .
• Eg. :- If there was a 6% inflation rate for the next
20 years, a Rs. 100 purchased today would cost
Rs. 321 in 20 years.
• An important factor to be consider for a lonf=g
term investment.
• Aim of investment should be to provide a return
above the inflation rate.
 WHEN TO START INVESTING
• Invest early.

• Invest Regularly.

• Invest for long term and not short term

 12 IMPORTANT STEPS TO INVESTING
• Obtain written documents explaining the investment.
• Read & understand such documents.
• Verify the legitimacy of the Investment.
• Find out the costs & benefits associated with the investment.
• Asses the risk-return profile of the investment.
• Know the liquidity & Safety aspects of the investment.
• Ascertain if it is appropriate for your specific goals.
• Compare these details with other investment opportunities you are
considering or you have already made.
• Deal only through an authorized intermediary.
• Seek all clarifications about the intermediary & the investment.
• Explore the options available to you if sometihing were to go wrong, and
then, if satisfied, make the investment.
OPTIONS AVAILABLE FOR INVESTMENT

One may Invest in :

1. Physical Assets

2. Financial Assets
SHORT TERM FINANCIAL OPTIONS AVAILABLE
FOR INVESTMENT
• Savings bank Account.

• Money market / Liquid funds.

• Fixed deposits with bank

LONG TERM FINANCIAL OPTIONS AVAILABLE
FOR INVT
• Post Office Savings.
• Public Provident Funds.
• Company Fixed deposits.
• Bonds.
• Mutual funds