What are forms of Investments | Things to consider while Investing

Savings Accounts

Through this, you can save money by depositing sum of money in savings account and banks pays interest on amount deposited and can easily withdraw whenever you wish to.

 

Certificates of deposit.

Here, you’ll have to promise to deposit for a fixed period of time and one earns higher interest in term or fixed or recurring deposit account.

Stocks

Have you ever thought that you’d like to own part of a famous restaurant, or the company that makes the shoes on your feet? That’s what happens when you buy stock in a company, you become one of the owners. Your share of the company depends on how many shares of the company’s stock you own.

Bonds

Here, you lend money to companies in exchange for bond so that they expand business and be more successful. They borrow money from us by selling bonds to us wherein the company pays you interest and principal money on a date in future.

Mutual funds

Stocks and bonds can be purchased individually, or you can buy them by buying shares of mutual fund. A mutual fund is a pool of cash that is to go by skilled or group of professionals who have expertise in selecting investments .The professionals select the stocks or bonds of companies and put them into a fund when researched through other companies. Investors can buy shares of the fund, and their shares rise or fall in value as the value as the values of the stocks and bonds in the fund rise and fall.

 

Tips before Investing:

  1. Have a written document explaining about investment.

  2. Try studying and analysing such document

  3. Verify legitimacy of investment.

  4. Try finding out cost incurred and benefits associated with it.

  5. Assess profile relating to Risks.

  6. Know the safety aspects and liquidity.

  7. Check if it is appropriate for your goals.

  8. Comparing with other investments is helpful.

  9. Always deal only with authorized parties.

  10. Clarify about parties and investment before doing do and explore as much options available.

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