Thursday, 11 August 2011

Safe Investment for Common Man, Why?

Safe investment means investment without uncertainties, Avoid uncertainties from investment. The outcome of investment should be definite. This may be a strange idea in the field investment. Most investment experts may laugh at this statement. But an ordinary man who is investing from his hard earned money, the beard and wine of his own and his families must invest safely. He has no money to play with, he has no money to do experiments, and he has no money to satisfy stock brokers and agents. He has his own financial goals which must be satisfied with his limited income. His financial goals may be small or big, long term or short term, he is the only person to meet those goals.

We may define investment as the art and science of investing money wisely and earn to satisfy the financial goals of the investor. Yes investment is an art. Everybody cannot do so. A successful investor must know how to invest wisely. The investor is playing with his own hard earned money, the bread and wine of himself and his families. Only a prodigal person can invest without looking ahead. He must know how to secure his investment. How to get a define income from his investment or a growth of investment.

Investment is a science. The investor must know the rules and principles of the investment he is doing. He must know all the aspects of his investment. How much he can earn? What is the risk factor? What is the tax rules regarding his investment? What is the legality of his investment? And so on.

Safest Investment Options

The recent development in stock exchanges and financial market does not consider the investment of such small investors. The small scale investor who invests in stocks and equity related investments could not redeem their investments due to the sudden fall of markets. Even if he has any financial goal to meet recently, he could no sell it off. He is not sure when he can dispose his investments profitably and his immediate necessaries cannot be postponed. Either he has to suffer a heavy loss or he has to go for a loan which is not easy with his current investments. He has to give any other collateral securities to get a loan. His current investments are not enough to get a sufficient amount of loan.

Investment plan for lazy investors and those who have not time to invest

We strongly advise such investors, invest only in safe investments such as Fixed Deposits, Public Provident Fund, National savings certificate, Post office saving accounts, Recurring deposits in banks or post offices, debt mutual funds etc as per your financial requirements. Even if you won’t get a huge profit, you can save your principal amount and some certain interests or dividend.

We do not discourage the investors who invest in stocks or mutual funds. We just mean that balance your investments as per your requirements. If you have a thirst for risk bearing keep a healthy proportion in both type of investments.

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  1. [...] Safe Investment for Common Man, Why?  Safe investment means investment without uncertainties, Avoid uncertainties from investment. The [...]