Why investment is important?

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Everyone says it is important to save or invest money. You can earn a rate of return with the help of investment. Generally, a question occurs in the mind of an investor why we should invest? Not only have these several other questions occurred in the mind of an investor such as

What is the purpose of investment?

How can investment be beneficial for us?

In what securities we should invest?

In this article, you are going to understand the importance of investment.

  1. Uncertainty- The future is uncertain. You can’t predict the future in advance. Your decisions only based on forecasting. You don’t know what problems you are going to face in the future. No matter enjoying the present is good but if you ignore your future completely you can face problems. The investment provides you the security that in case of any problem you can meet out any contingencies.
  2. Growth- the main reason for investing is to grow the money in the future. Excess money instead of depositing in a bank account you can invest it in the securities market in which you can earn a rate of return. Growth and stable rate of return also attract many investors.
  3. Independence- in the present time financial independence of a person is important whether its male or female. Financial independence is the most important aspect and investment helps to earn financial independence. You don’t need to depend upon your family, friends, relatives, or any other person. By doing investment, you can use your invested money in case of any need.
  4. Attainment of goals- investment helps in the attainment of goals. Every people have their own goals whether short term or long term goals. You need investment to achieve those goals. E.g. you have a goal of purchasing a car you can invest and with the help of investment, you can achieve your goal of purchasing a car.
  5. To meet out inflation rate- inflation is generally an increase in the price level of goods and services. Nowadays the inflation rate is increasing day by day. With the increase in inflation, a person can’t meet out the expenses with salary. You some savings in case of any problem. Here the investment is the solution as it provides you rate of return according to the market rate. But before investing you need to consider the available options and the other securities-related with an investment. This will helps you to decide the investment security. The rate of return on these investments is based on the inflation rate which helps you to solve the problem of inflation.
  6. Tax benefit- the main reason for doing an investment also depends upon the tax benefit provided if you choose to invest. Standard deduction of Rs. 1,50,000 is provided and deduction under section 80C to 80U is also provided to the investor holder according to the Income Tax act. You can attain tax benefits by doing investment.

It was never said that investment is going to be an easy step but if you want to do something in your life or if you want to make growth investment is the best option to achieve your growth. So many doubts and conflicts would be in your mind regarding investment mainly the fear of losing an investment but just because of losing your initial amount you cant step back. Try to take risks in your life. Try to be different from others. Your dreams are higher than your family, friends, or others. You need to take a step. Stop doubting yourself and try to do hard work then you can get success in your life as hard work is the key to success. So start investing.

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