What is Investment? It is a process in which an item or asset is acquired with the goal of generating income or appreciation over time. e.g. investment in FDs (Fixed Deposits), gold, equity (stocks), property, etc. Investment is better than saving as it could provide returns in the future. Pillars of investment: safety, liquidity, and return. Purpose of Investment Wealth creation to fulfill financial & life goals like building our home, marriage, children's education, setting up business, buying land, retirement, etc. And to achieve these goals we should start investing from today. Inflation Tax benefits Secondary income Emergency savings Savings Investment according to its priority & time Long Term Investment Compound Interest Compounding is the process whereby interest is credited to an existing principal amount as well as to interest already paid . Compounding thus can be constructed as interest on interest - the effect of which is to magnify returns to interest over ...
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