The fundamentals of Investment

Every individual divides his/her income in two broad parts:

1. Buying goods and/or services needed for current consumption
2. Saving some funds for a planned / unplanned expenditure in the future

These saved funds usually lie idle either in a bank account or as cash at home. Also, many people who live from paycheck-to-paycheck find it difficult to save funds from their current incomes. Nevertheless, they want to be prepared for future expenses too! In both the scenarios, the desire to see the money grow over time and help manage costs later in life is deep rooted. This is where investment steps in.

People who either save or cut costs to ensure a better future, look to part with their funds temporarily by ‘investing’ them in options that offer returns on their investments.

Remember: When you invest, you are buying a day that you don’t have to work. – Aya Laraya