What Are Investments Actually?

Question:

What are investments exactly?

I’ve read some really awesome stuff on 'Quora' but one thing I’ve remembered was ”Save money not just for the sake of saving, instead save them to invest them later”. What long investments are we talking about? I’ve tried forex but I’m not really into graphs. I’ve also flipped minimal inexpensive things.

Answer:

Dear Friend!

Thank you for your valuable question.

Trading in forex, commodities and stocks is not at all investing but mere dangerously speculative activity disguised as investing. Margin Trading will surely ruin not only the financial position but life itself.

Please read and understand the correct meaning at ‘Investing-Definition’.

What long investments are we talking about?

Well we are talking about:

1. Systematic investments in Shares/ Mutual Funds/ SIPs/ ETFs
2. Shares and bonds if purchased directly, it shall be ensured that they are investible and safe and are purchased at a fair price.
3. Investing activity is sustained without a break for two to five decades.
4. Investments are held for two to five decades.
5. We have provided ‘Miracle of Compounding’ an opportunity to work in your favour and make you rich and wealthy.

Related Links:

• Day Trading Definition
• Margin Trading Definition
• Stock Definition
• Definition of Mutual Fund
• Exchange Traded Fund Definition
• Systematic Investment Plan (SIP)
• How to Find The Fair Price of A Stock?

I thank you once again and I hope I could give you a well rounded understanding of what long term investments are all about.

Anand

Please Note: This is almost a reproduction of the question I had answered on the website ‘Quora’, which I thought could be useful to the visitors to this blog site also.