Investment means investing or speculating money in such a way that we can get the money doubled in the future. The extra money that we get from our investment is called investment returns.If we invest $50 in a company, after some years the company gradually expands and you get $70 after some years. The extra $20 that we get except the investment is the returns that we get. If you invest in any company you get the profit in mainly four ways.
- Capital appreciation- In this the value of your investment increases.
- Interest- You get interested in your investment amount as you get from FD in a bank.
- Dividends- You get dividends when you invest in the company’s shares.
- Real estate- When you invest in real estate, you also get returns.
In the market, you get many other types of investment offers but they are indirectly based on any of the above types of investment.
Why do rich people invest?
Finance expert Robert Kiyosaki has written in his book “Rich Dad Poor Dad” that, ” The one thing that differentiates a rich man to poor man is that, the rich man not only work for money but they make money work for them.” Money working for a person means investing in a place where it will increase on its own. Investors think that only working for 24 hours is not enough, so they use that time to earn money and invest money at other times so that the earned money becomes double in itself. For this reason, rich people keep on investing their earnings to make more returns. They initially start from a common man to earn money and save more. Later, to invest that money to increase the profit.
Why is it important to invest?
There are two main reasons for which investment is important for everyone, those are-
- To earn more- Rich people do investment to earn more and save more.
- Inflation- Inflation means increasing the price of commodities in the market. Some years back, the price of commodities is very low which is easy to spend for everyone. Nowadays, the price has increased drastically which demands investment.
Which is the best place to invest?
In India, people mainly invest in three things I.e. gold, real estate, and the stock market. In past decades, gold has given a 9.84 percent compound returner year, real estate has given 12.47 percent compound return per year and the stock market has given 16.16 percent of compound return per year.
There are different stock markets like NYSE: ZTS at https://www.webull.com/quote/nyse-zts . So, it has been found that investing or stock trade in the share market gives you more compound returns per year as compared to other forms of investment. Nowadays people invest in many ways to earn more and more to cope up with their daily expenses and save for the future. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.