What is Investing?

Investment is spending money,time or resources in order to create or acquire assets(store something that you don't need now). In other words, Investment is just saving.

So my friends stop worrying and start investing.

Threats to Investing

1.  Investment loses its money because its value falls.

        solutions:-

•          Give your investment more time.
•          Sell some of your risky investments well before you need the cash.
•          Shift risky investments into safer ones,but do it gradually in years.

2. Bankruptcy :-

        

       solutions:-

•            If you hold loan or bond, you can get something but nothing if you hold stock
•            Get financial information of company from time to time.
•            Don't invest in company with low financial background.

3. Inflation :-

        

         solutions:-

•           Find investment which keeps up with investments like stocks

4. We ourself :-

Yes, we ourself are the biggest threats to investments. We often follow the herd behaviour , we see others,buy stock,hence price rises and finally falls.

        solutions:-

•            Understand the company and the price.Don't invest on the company you don't know about.
•            Beware of financial scams and cheat funds.
•            We only see what we want , for example we may think McDonalds is a good company to invest in as we see a lot of customers out there in INDIA but on the counterpart, it sales in US is declining.

So now you know the various threats to investing. So, try to avoid those and start investing.

More articles coming soon....