What Is Investing & Why I Should Invest? Part - 1 - InvestNagar
- What Is Investing?
Investing means putting your money into different financial assets to make it grow and achieve your financial goals, acting as either a supplementary or, in some cases, the main source of income. Unfortunately, we often concentrate on a few drawbacks while overlooking the numerous benefits it provides.
- Why Should I Invest?
Increased Returns: 
Participating in the stock market provides the opportunity to potentially achieve higher returns on your investment, allowing for the compounding of wealth over time and the accumulation of funds for diverse life objectives.
Inflation Hedge:
- Why Should I Invest?
Increased Returns:
Participating in the stock market provides the opportunity to potentially achieve higher returns on your investment, allowing for the compounding of wealth over time and the accumulation of funds for diverse life objectives.
Increased Returns:
Participating in the stock market provides the opportunity to potentially achieve higher returns on your investment, allowing for the compounding of wealth over time and the accumulation of funds for diverse life objectives.
Inflation Hedge:
Inflation poses a significant obstacle to wealth accumulation, making it imperative to choose avenues that outpace inflation for long-term prosperity. Inflation, marked by a gradual rise in price levels within an economy, diminishes the value of investments and the purchasing power of money. For instance, if your money is stagnant and stored at home, but inflation is on the rise, the value of your money declines each year. For instance, with a 5% inflation rate, the value of your money diminishes by 5% annually if left idle, as product prices increase by the same percentage. Thus, allowing your money to remain inactive for extended periods erodes its value further. Investing in assets becomes crucial to counter inflation and generate positive returns.
Compounding:
Imagine you invested Rs 500,000 in the first year, and it yielded a 14% return, resulting in a total of Rs 570,000 by the end of the year. The power of compounding comes into play in the following year, where the 14% return is computed not on your original investment of Rs 500,000 but on the increased amount of Rs 570,000. This means in the second year, you earn a return not only on your initial investment but also on the gains from the previous year. By the end of the second year, the total amount would be Rs 648,600, showcasing the compounding effect.
PART - 2
Inflation poses a significant obstacle to wealth accumulation, making it imperative to choose avenues that outpace inflation for long-term prosperity. Inflation, marked by a gradual rise in price levels within an economy, diminishes the value of investments and the purchasing power of money. For instance, if your money is stagnant and stored at home, but inflation is on the rise, the value of your money declines each year. For instance, with a 5% inflation rate, the value of your money diminishes by 5% annually if left idle, as product prices increase by the same percentage. Thus, allowing your money to remain inactive for extended periods erodes its value further. Investing in assets becomes crucial to counter inflation and generate positive returns.
Compounding:
Imagine you invested Rs 500,000 in the first year, and it yielded a 14% return, resulting in a total of Rs 570,000 by the end of the year. The power of compounding comes into play in the following year, where the 14% return is computed not on your original investment of Rs 500,000 but on the increased amount of Rs 570,000. This means in the second year, you earn a return not only on your initial investment but also on the gains from the previous year. By the end of the second year, the total amount would be Rs 648,600, showcasing the compounding effect.
PART - 2
Inflation poses a significant obstacle to wealth accumulation, making it imperative to choose avenues that outpace inflation for long-term prosperity. Inflation, marked by a gradual rise in price levels within an economy, diminishes the value of investments and the purchasing power of money. For instance, if your money is stagnant and stored at home, but inflation is on the rise, the value of your money declines each year. For instance, with a 5% inflation rate, the value of your money diminishes by 5% annually if left idle, as product prices increase by the same percentage. Thus, allowing your money to remain inactive for extended periods erodes its value further. Investing in assets becomes crucial to counter inflation and generate positive returns.
Compounding:
Imagine you invested Rs 500,000 in the first year, and it yielded a 14% return, resulting in a total of Rs 570,000 by the end of the year. The power of compounding comes into play in the following year, where the 14% return is computed not on your original investment of Rs 500,000 but on the increased amount of Rs 570,000. This means in the second year, you earn a return not only on your initial investment but also on the gains from the previous year. By the end of the second year, the total amount would be Rs 648,600, showcasing the compounding effect.
PART - 2
PART - 2
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