What is Investing ?

An investment is defined as an asset that is created with the intention of growing your wealth with time to secure future financial requirements and needs. When you put your money in a project for a positive return, you buy assets that will grow in value over time and help your income in the future. Financial investments can come in many forms such as mutual funds, stocks, bonds unit linked investments and much more. It’s the act of allocating money with the expectation of gaining a profit.

How to start investing:  

Investing your hard earned money in any financial investment can be disconcerting and also confusing. Every investment can be a risk or it can be a reward. The uncertainty and potential financial loss as an outcome is a possibility. It’s a task that should be well thought out and planned.

• The first step an individual should undertake is to research about different types of investments, gain knowledge and confidence. Read and research about the different types of financial investments and what returns they generate thoroughly. You can then start creating a financial plan where you have your goals set for example building a business, buying a house or making a fund for your children’s education and a target for the amount you want to save by a specific date. 
• Understanding the risk of investment is very important. Higher returns on your investments require taking a higher risk. To determine what investments are most beneficial to you, you must determine your risk tolerance and how much you can be prepared to lose should an investment decline in value. Assess your risk tolerance by deciding what you are investing money for and how much you are saving. If you are new to investing you should be vary of taking bigger risks until you have complete expertise on all financial investments and their return To become an investor, saving money to invest is a must. Strategic planning and keeping some money saved from your monthly income as soon as you have a financial plan is a priority. If your plan is to save a lot of money quickly then you can make a budget of your monthly needs, track how much you are spending, cut down all unnecessary expenses, and be frugal up until you have saved the desire amount. Understand the power of compounding. When you invest money, it will generate returns. These returns can be reinvested to earn more returns and the process can go on. If you start saving and investing as early as possible and regularly, power of compounding can help increase your
• wealth significantly. Be disciplined and strategic about your investments and risks. Experts advice not to be thrilled or unnerved about constant market fluctuations and media coverage if the market. Verify everything you read and hear from the market pundits. It is not necessary that they will always predict the market accurately. There are a lot of choices available in the market for investors in this advanced day and age. The most basic rule of investing is to never invest in a plan that you do not understand completely. Only invest in plans that you are confident and well educated about. This will lower the risk of loss. In conclusion, investing, when done with the right knowledge is an effective way to increase and build your wealth. You can secure your financial future and have more stability in life.