‘I am more concerned about the return of my money than the return on my money.’ Written By “Mark Twain”.
In finance, the benefit of an investment is called a return. The return may consist of a gain (or loss) realized from the sale of property or an investment, unrealized capital appreciation (or depreciation), or investment income such as dividends, interest, rental income, etc., or a combination of capital gain and income. The return may also include currency gains or losses due to changes in foreign currency exchange rates.
Investors generally expect higher returns from riskier investments. When a low-risk investment is made, the return is also generally low.
· Debt mutual funds
· Bank fixed deposit (FD)
· Real Estate
· Public Provident Fund (PPF)
The first step in planning your investments is to figure out the right investment that fits your profile and needs.
· Choose investments carefully after doing adequate research.
· Don’t fall for quick-buck schemes that promise high returns in a short time.
· Review your stock and mutual fund investments periodically.
· Consider the tax implications on returns you earn from your investments.
· Keep things simple and avoid complicated investments that you don’t understand.
If you are in your retirement years or looking to retire, don’t invest in what you believe to be a gold mine–look for conservative value investments.
The bottom line is, don’t lose your money on speculation. Be prudent and smart, especially if it feels like everyone else is making money.
Connect with me on Linkedin: Naman Garg.