WHAT IS INVESTMENT?
Investment
is nothing but parking your income/cash somewhere (an instrument, or asset
class). If you have cash piled up in a locker it is not an investment, it is
merely currency or cash amount. Your bank savings account also doesn't come
under instruments as it gives only 3-4% return and meant for primarily parking
your cash rather than investment. (However recently some banks have started
giving 5-6% interest on savings bank account as well however their minimum criterion
is to keep a minimum balance of 1 lack and above.)
INVESTMENT OBJECTIVES:
Investment
is done for following objectives,
1.
Beating rate
of inflation
2.
Gaining return
on money in access of over and above rate of inflation
3.
Gaining
capital gains
4.
Specific Goals
(fulfillment of financial planning goals etc.)