For 2 to 3 decades investing and saving has become an important part of our lives in the 20th century, people are not very aware of the terms investing, stock market, bonds, etc., etc.
Let us now understand what is investing and how it compounds your money
Investing means putting your money in various types of assets for better returns than FD and RD in the long term. Long-term means at least 5 years of tenure, in less than 5 years of investing you will not be able to generate better returns.
There are mainly two types of investing
1. Long-term investing
2. Short-term investing
Long-term investing is putting your money in assets for more than 5 years of tenure and generally long-term investments produce better returns than short- term investments
MUTUAL FUNDS AND ETF'S
SAVING FOR EDUCATION
Short-term investing is putting your money in assets for less than the tenure of 5 years it may be for 10 days, 1 month, or for 6 months But note - short-term investments are always risky it may produce multi bagger returns within a month but can also sink all of your money within that month.
But if you are interested in trading you can consider some types of short-term assets-
FIXED MATURITY PLANS
Have you started your investments? Tell us in the comments section……
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