What is Investment and it's objective ?

  Investment is the process of investing your money in an asset to grow your money in a particular time period. it can be by purchasing shares, real estate investments, ULIP, life insurance plans, mutual funds, etc. 

  Your savings become investments when they carry investment risk,. That investment creates long-term wealth, which can be used for retirement corpus, children's higher education, marriage, buying a house or car, etc .

   Objectives of Investment

 Putting your money into an investment plan can increase value or produce income. As responsibilities rise, greater amounts of investment will be necessary. These are some of the primary objectives for investing:

 1. Build your wealth: Investing is the only way to make your money work for you. Investing makes your money into wealth by compounding your money. compounding is the eighth wonder in the world. 

2. Early retirement: By investing and building wealth, one can retire stress-free and even retire early.

3. Buy your dreamed assets: investments make your money into wealth and with that wealth, you can purchase your car, house, and all other assets.

4. Save taxes: Investment in tax savings instruments like life insurance plans, ULIPs, PPF, NPS, etc allows you to claim deductions on your taxable income. Thus, investing in specific assets can help you reduce your tax liability. Many of these investments also help you reduce your future tax with tax-free maturity values.

5. Maximizing savings: Investing in tax-saving instruments, including life insurance plans, ULIPs, PPF, NPS, etc can help you to deduct from your taxable income. Such investments also provide you with a tax-free return at maturity. Thus, by investing in the right assets, you can significantly reduce your overall tax liability.

Different types of Investments

Depending on the type of asset you invest in you can expect a certain degree of risk and return ratio. You can divide all investments into the following categories:

  Owner's Equity

 These are some of the high-risk investments as you are holding an ownership stake.

After paying all the expenses, the owner makes you a part of the profit and loss of its profit.

Lending

Lending is considered safer than equity, as you secure an obligation from the borrower to pay interest. Thus you hold first right to the money.

Mutual Fund

When investing in mutual funds, money from different investors is collected and managed by a professional fund manager. Depending on your risk appetite, desired investment period, and expected returns, you can invest in Equity, Debt, or Hybrid Mutual Funds. Also one can gets an 80C deduction by investing in an ELSS fund.

ULIP

It is a contribution of life insurance and investment. also, you can get 80C deduction.

PPF

PPF is shown as one of the best long-term investment options for those searching for guaranteed return.