ABSTRACT
Allocating funds to assets with the intent of enhancing one’s future is considered investing. Investments are made with the objective of generating returns that increase the initial investment amount. To accomplish the goals, funding is essential. The only way to enhance its future would be to do it. By investing, one is also building a corpus for a bad day while trying to save money. Additionally, investment continues to make you save money on a progressing premise, which will gradually assist you in developing financial discipline.
Inflation is a rise in the cost of both goods and services. Both the money’s value and its ability to be spent are decreased. Using the same sum of money, fewer goods may be purchased as inflation rates rise. We have no control over the rate of inflation. One needs to have enough money now to purchase the entire range of the items they wish to purchase in the future if they want to stay ahead of inflation. However, money does not grow on its own.
If indeed the investment is to expand, returns must be generated. One must invest if one wants to get returns. Investments are therefore required to combat inflation. There are many different investment choices available. An evaluation of needs and risk tolerance is a must before choosing to invest in any certain investment option. Investments can be categorized as either active or passive. Direct equity, collective investment schemes, fixed deposit accounts, recurring deposit accounts, public provident funds, employee provident funds, the national pension system, and other investment choices are available. However, you must be sure that you are only investing in possibilities that meet your risk tolerance and fulfil your needs. In this chapter, we are going to explore various investment and alternate investment options in India.
