Wednesday, 16 May 2012

Savings, investments and wealth management service

Now investment has a wide meaning. It includes money market investments, real estate investments, investment in gold and other precious metals, investment in artworks, investment in mutual funds, fixed deposits and even insurance also consider as investments. In this situation it is better to differentiate savings and investments and seeking advice from wealth management professionals.

1. What does savings means?

Saving is just set apart a part of your income for your immediate financial needs such as marriage, education, hospitalization and so on. The money you save is not the left over after satisfying all your daily financial requirements. You postponed or avoid some of your financial requirements for a few expected future needs. This savings can do by keeping money separately or in a bank.  Popular saving methods are recurring deposits (RD) and systematic investment plan (SIP).

A. Recurring deposit: Through recurring deposit you can save a fixed amount (say Rs. 100, Rs. 1000 and Rs. 5000 etc.) periodically in a bank or post office. After the predetermined period you can withdraw the money with interest and can use for your financial needs or can invest in any investment methods.

B. Systematic investment plan: Through systematic investment plan you can save a fixed amount of money in any mutual fund or exchange traded fund for a fixed period. After the end of the tenure you may withdraw the money or can keep in the fund itself for any time. When you need money you can redeem these funds partly or wholly as per you financial needs. You can earn growth or interest as per the nature of the fund you invested in.

2. What does investments means?

Investment means spend money for purchasing any financial documents or properties to satisfy one or more long-term financial needs. These financial needs may purchasing of a residential house,  higher education of your children, marriage of your children, meet retirement needs etc. Invest your savings wisely for long-term financial needs. This includes purchasing real estate for resale or for rental income, invests in gold, fixed deposits, long-term mutual funds or shares etc. You should apply more knowledge and wisdom to get the greatest benefit. You should get growth of your wealth and at the same time you have to beat inflation.  You must be an expert to get the full benefit of your money. You can seek the advice of a good financial consultant, investment adviser or wealth management service.

3. What does wealth management service means?

Wealth management or wealth management service is the growing tendency among investors to get fruitful advice for their investment needs. These wealth management services offer effective investment advice and direction to use your hard-earned money wisely. They help you to fix your financial goals and teach you how to save and invest money for satisfying these financial needs. They will also teach you how to set apart a part of your income for your investment and financial needs. Greedy professionals may direct you for their own benefit. When you select a wealth management service or a financial consultant, find a good one and the fee you paid for their service is not a loss.

So set apart your income and save them for your financial needs and invest wisely this money with the help of a good wealth management service and enjoy a quality life.

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