Investing is a great way to grow your money and save for the future. It puts your money to work for you, allowing it to appreciate in value over time. You can invest in stocks, bonds, mutual funds, or ETFs (exchange-traded funds) and use the returns from those investments for retirement savings or other goals you may have. Different types of investments have different levels of risk and reward—so it’s important to conduct research and speak with a financial professional before taking a plunge into investing. Once you determine where and how much to invest, make sure you’re diversifying your portfolio across multiple investments so that no one type of investment represents all your holdings.

This helps reduce financial risks down the road by ensuring that if one investment falls through, others will still be able to support you financially. With careful planning and due diligence, investing could ultimately help you build wealth over time!

Why Should You Invest?

Also, Investing is essential to achieve your goals. It is the only way to make your future better. By making investments, you are also saving and accumulating a corpus for a rainy day. Apart from that, making regular investments forces you to set aside a sum regularly, thereby helping you instill a sense of financial discipline in the long run.

Impact of Inflation & Importance of Investing

Importantly, Simply put, inflation is a rise in the cost of goods and services. However,  Your purchasing power and money’s value are both diminished. Undoubtedly, With the same amount of money, you can buy fewer things when inflation rates rise. The inflation rate is outside of your control. If you want to stay ahead of inflation, you must have enough money now to buy the full range of the goods you plan to buy in the future.

Surely, Money doesn’t, however, grow on its own. Whereas,  Your money must generate returns if it is to grow. You must invest if you want to get returns. Investments are therefore required to combat inflation. At last, An 8 % inflation rate means that you will need 8 % more money than you do now to buy the same thing next year. Here is how Rs. 1 lakh would be worth after eight years of inflation at 8%.

Where can I invest?

Having figured out the reasons to invest, the next obvious question would be – Where would one invest, and what are the returns one could expect by investing?

For example, Once one has determined why one should invest, the next logical question is where to invest and what kind of returns one can anticipate. A category of investments with specific risk and return characteristics is referred to as an asset class. Popular asset classes include the ones listed below.