If you are a earner & you don’t know the word “investment” it is hardly possible. Today, in a globalised world economy. Optimism & growth stories are leading to investments in ports, huge industrial plants,and infrastructure projects & even at personal level, as active investors are investing heavily in many diversified instruments such as real estate, equity, bonds & commodities. As market dynamics changes day by day, many new ways of investing are coming into picture thereby attracting potential investors.
In simplest language, Investment is the commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns in the form of interest, income, or appreciation of the value of the instrument.It is related to saving or deferring consumption. Investment is involved in many areas of the economy, such as business management and finance no matter for households, firms, or governments.
An investment involves the choice by an individual or an organization such as a pension fund, after some analysis or thought, to place or lend money in a vehicle, instrument or asset, such as property, commodity, stock, bond, financial derivatives (e.g. futures or options), or the foreign asset denominated in foreign currency, that has certain level of risk and provides the possibility of generating returns over a period of time There is also emerging trend in investing called “Online investing” which employs use of internet in making investment decisions.
The conventional method of trading by placing orders through a broker has changed because online investing is so simple and easy to do. Through online investment, it is possible to eliminate the need of meeting with a broker to decide what securities to buy. As all the tools, guides, basic tutorials,comparison charts etc details are available for most of the users; online investment has become most popular form of investing among young adults & active investors.
Online investment can be done for a number of financial instruments. Some examples are securities, options, mutual funds and forex. With the single click, investors can buy shares, invest in Government bonds, buy mutual fund units, trade in currency trading market, and view their saving account status. If a traditional no risk taker investors wants to open a fixed deposit account with a bank, he can do so with online saving account, commonly called as net banking account which can be used as online investing tool. Many online trading firms offer alternatives like fax and touch-tone telephone trade to investors who face delay while placing their orders through the Internet.
Security is major concern for all types of transaction done over internet as it can be fatal sometimes if investor’s personal information gets leaked over internet. Thanks to major improvements cyber security for financial transaction, it is today possible to carry out online investment without any risk.
Almost all financial institutions, banks, NBFCs, trading firms offer many online investments, trading platforms, softwares innovatively introduced to carry out financial transactions, investments, without any risks. They also utilize the technology & internet to educate the investors about new ways in the investment world.