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Saturday, September 15, 2007

NEED FOR INVESTING IN SHARES?

First let us understand why there is a need for investment.

Saving is different than investment.

In saving you just put money at one place thinking that it is beneficial but sadly simply saving money is not beneficial because the value of money decreases with time.

"Milk which you buy for Rs.25 per litre will cost you more than Rs25 after 10 years"

Thus, the value of money decreases with time. This is known as INFLATION.

"Inflation is the enemy of Savers"

Thus, in order to combat Inflation Investment is important.

You deposit money in the bank, the bank pays you a small interest for the money you deposited, but still the interest rate is so low that it leads to minimum gains which in a span of 5 to 10 years turns to nill thanks to inflation.

THAT IS WHY INVESTMENT IN SHARES OR EQUITIES IS NECESSARY BECAUSE IT PROVIDES YOU WITH MAXIMUM GAINS AND THAT TOO WITHOUT ACTUALLY MOVING A LEG.

Before investing in shares, you should have some basic knowledge regarding shares on the following points.

1>What are Shares?

2>Which company shares should be purchased?

3>Is it Risky?

These questions are answered in the post
"LEARN ALL ABOUT INVESTING IN SHARES"

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