Godmind Knowledge House
Investing Principles!
| As a investor you need to create an investment path for your future requirements. Investment is not a one time act of putting money in equity, bonds, real estate or saving certificates. Investment by nature is very dynamic and evolving activity. To keep pace with your investment needs and requirement, you need to follow certain investing principles. These investing principles act as a foundation or structure to our Investment Planning Process. Since we invest in order to reap the profits in future, this act of investing carry the burden of securing our future. This is the reason because of which we need to follow certain principles of investing and abide by them. By following these investing principles you as an investor will become more disciplined and informed of your investment decisions. |
| If you are a investor who is well verse with the basics of investing process, you will realise that the principles mentioned out here is the backdrop of every investment decision. |
| Those who are new to the world of investment need to remember that the principles mentioned out here 'the most important one'. Going through them will give you an insight on certain important aspects of investing. |
| Investing and Saving |
| They are not same but they are similar. The differentiating factors are vague, but Still - they are different. |
| Risk and Return |
| Higher the risk, higher is the return. Lower the risk, lower is the return. First understand what risk risk we are taking about. Theoretically, even 'safe' investments (such as bank deposits) are not without some element of risk. |
| Affect of Inflation |
| With every passing day the expense for supporting a life on earth is getting costlier. The reason is rise in price of goods and decrease in the value of currency. You cannot avoid it but you can nullify its affects. |
| Power of compounding |
| A growth pattern of investment which is most likly to success usually take the help of 'time' and not 'timing'. Compounding has the power of 'time' behind it. |