You have to invest your money wisely so that your assets grow and generate good returns, well above rate of inflation. Equity gives best returns if invested with knowledge, logic, and expertise. There are many other investment options based on various conditions and situations. Some are simply speculations. Buying a share of a company means buying the smallest unit of ownership in a company or an enterprise.
Consequently, their book values B. Let us take some examples of companies which have given outstanding returns. Infosys is a software giant. If you had invested Rs. The shares are adjusted for all the bonuses and stock splits. It got doubled to Rs. Almost, three times dividend of Rs. The Book Value B.
Book Value also increased more than double from Rs. Net worth doubled from Rs. Net profit doubled from Rs. The share capital remained unchanged at Rs. The true value, real worth of these shares increased, doubled on their own in 3 to 4 years. There are always hundreds of such examples. This clearly shows that shares of good growing companies are always growing in real-intrinsic values-EPS, the book values. Hence, they are truly growing Active, Dynamic asset. So, investment in good, growing equity is investment in an active, growing dynamic asset, always increasing in real value.
When the true- intrinsic- real value of the asset is growing, the market value of the asset is bound to go up sooner than later. Generally the interest rates lead the rates of inflation. This worm of inflation eats into your purchasing power.
Hence Debt hardly gives you any returns and if you are a Tax payer, the Returns may be negative. So, Debt should not be a real main principal long term investment option. You can invest in if you want safe investment. Land is real in Real Estate R.
Our very existence is on it and largely because of it. Indian population has doubled in last 50 years and so has the urbanization from 20 percent to 40 percent resulting in great demand for limited urban land.
In place like US where land per capita is ten times more than India, land prices have been stagnant. It is a myth that R. It is a subject matter of another article. Of course Real Estate is tangible in real sense, has some important uses like constructing your home, houses, school colleges, factories, roads, shopping malls, offices and so on.
Owning a house is lifelong ambition matter of sentimental- emotional satisfaction for almost every one. So, you have to consider all the hurdles before considering Real Estate Investment Option. Diamond is pure Carbon Crystal in Octahedrons. It is the hardest natural substance in the world, actually five times harder than the second hardest mineral corundum.
It is found in Botswana, US. In India around , a one carat average Diamond was costing Rs. Its extremely condensed value and portability bestow Diamond as a form of emergency funding for the dictators, Rulers, Super rich on a panic flight.
It has no fungibility, every single Diamond is unique like every single human. Being brittle, it could be easily scratched, damaged. Large number of variables in quality makes pricing difficult, subjective. Hence, no loan is given against Diamond as security. You should have complete knowledge to buy diamond. Because of all this no terminal market for Diamonds, resulting in no liquidity.
As a matter of fact, expert says there is no natural shortage of Diamonds. Gem quality synthetic Diamonds are produced since which cost a fraction at Rs. The average ratio for Gold: Silver for the 20 th Century was 1: Average rates as on 23 rd March at Mumbai: The following prices rates prevailed:. Gold prices have been compared with many commodities just to give you some perspective nothing else. We are concentrating on the Gold as on investment option simply because it is one of the best Asset and also investment option.
The highest denomination Note of Rs. But 1 gram of Gold on 23 rd March was costing Rs. A person can carry roughly 10 Kg. But same weight 10Kg of Gold worth Rs. During golden days when there were always battles and uncertainty.
Gold was the perfect value- medium one could hide, carry and run. A Jeweler an entrepreneur adds value to Gold for himself by making Jewelry. But the same jewelry loses value for the customer while reselling it.
There are innumerable studies and statistics that have linked Gold prices to that of other materials like Silver and connected Business and overall environment. Gold prices go up when there is recession, stocks are stumbling, uncertainty, lack of confidence and vice-versa. Statistics regarding Gold prices over last years have established that Gold has always preserved the purchasing power but have given very little real Returns. Exceptional Returns in patches have been nullified by low or negative returns at other times.
But, because of many qualities of Gold as discussed above Gold continues to rule over the heart of masses and classes the world over. In short Gold is like a beautiful, talented lady who never grows old, nor falls ill. That is why everybody loves and chases her. But is she worth marrying? Or just great for flirting? It is poor cousin of Gold. Like value less impressive than gold in looks, properties, density, rarity, colour, luster, liquidity and so on.
It gets affected by climate, gets oxidized, more volatile and less liquid than gold. Given below are some investment options chosen by some people. I covering them below in brief.
Some traditional examples of commodities are grains, gold, oil and natural gas etc. Recently, it has included products like foreign currencies and indexes. It may be good for the Traders in the particular commodity. But, otherwise a risky investment option with little logic. These have lack of fungibility, affected by time, and climate. They do not have terminal Market and liquidity. The interested and Super Rich can buy for showing off.
Carbon credit is a credit received for preventing 1 ton of CO 2 , Green House Gases from going into the atmosphere by using green renewable energies. Perhaps ok for companies involved in Energy Business, but certainly not a best investment option for individuals at least now. It is not an asset, but a contract on exchange rates. It is speculative, not an asset, not an investment option. Not an asset but a contract on underlying asset. It is certainly not a prudent investment option.
He is an expert in Wealth Management. Hi sir how to invest money in share market as i am having nothing to know about share market.
Can u give me some tips to invest money in share market. Hi, I am grateful for this tips on investment. This information is useful. In the past three months i have come across very useful information that has changed my way of life completely in how to invest in housing.
The best practice in land and housing investment. You can check out this for the latest and best investment venture that has changed mine.More...