An investment is an asset that is created with the objective of expecting wealth to grow. The corpus created can be used for a variety of reasons, such as, saving up for retirement, saving up for a down payment, creating an emergency fund or fulfilling certain specific obligations such as repayment of loans, payment of tuition fees, or purchase of other assets.
Given below are few of the benefits of making investments:
•Hedge Against Inflation – With inflation indices rising continuously, it is more important than ever to choose the right investment vehicles to stay ahead of inflation. Investment options like fixed deposits can offer returns above 8%, which can help you outrun the average inflation rate of 4.75% and still reap profits.
•Manage Financial Goals – Starting investments based on your long or short-term plans, can help you meet your financial goals easily. You must chalk out a proper plan to tie up every investment with your goal, so you can easily fulfil them.
•Compounding Returns – When you start investing early, you can reap the benefits of compounding returns, which keep increasing over time.
•Create A Retirement Corpus – You can invest smartly to grow your retirement corpus, and accumulate your savings to grow over time. By setting aside a sum of money for retirement, you can ensure that you cater to your regular expenses and secure your future.
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