Investment Plans

There are two concepts in the financial industry, on which many transactions take place. They are Savings and Investments. When talked about execution, there is a big difference between both the concepts, though

Here we are going to discuss the second concept of the financial industry, i.e. Investment

In the financial context, investment is any money or fund that you spend today to reap financial benefits in future. Any investment made by you is an act to create or buy assets expecting a return in form of capital appreciation, interest earning or dividend. This return is profitable in comparison to the funds invested in the initial stages. You can differentiate almost all the investments from various other types of transactions depending on the intention of spending money. The money you spent on making an investment is basically with the intent to obtain some kind of return in a certain period of time.

Benefits of Investments

Investment, being one of the most significant aspects of the financial planning, intends to ensure that the money you earn is put to productive use. It is profitable and a good way to gain extra cash. By making investments in several financial products you can grow financially. . Same thing applies to the value of Rs. 100 five years ago in comparison to its value at the present day.

If you make investments, you will harvest returns out of it that will help you with emergency expenses like any medical expenditure, accidents etc.
Making investments in different financial avenues makes sure that the money you have invested grows rather languishing in bank accounts.
You can earn income from your accrued wealth by making investments. For instance, you can earn rent from investment in real estate or earn a dividend from investments in stock markets.