Investment Pattern On The Basis Of Time and Return | MBA admission in Bangalore 2022

Posted by Kavya J On 02/02/2022 11:18:52

According to the author Dr. C. M. Shinde, Priyanka Zanvar, Investment has different meanings in the context of finance and economics. Finance investment is putting money into something with the expectation of gain that upon thorough analysis has a high degree of security for the principal amount, as well as security of return, within an expected period of time. In contrast, putting money into something with an expectation of gain without making a thorough analysis is speculation or gambling. Thus, Finance Investment involves a decision-making process in order to ensure the security of both the principal amount and the return on investment (ROI) within an expected period of time. iibs bangalore

The two main classes of investments are 

  1. Fixed Income Investment such as bonds, fixed deposits, preference shares and
  2.  Variable Income Investment such as business ownership (equities) or property ownership. 

On the basis of tenure, the investments are classified as Short-term Investment and  Long-Term Investment. Investments made for a period of one to three years are termed short-term investments and those that are invested for more than three years are termed long-term investments. Almost everyone holds some portfolio of investment in the form of financial assets like bank deposits, bonds, stocks, and so on; and real assets like motorcycles, houses, gold, etc. With reference to individuals, investment decisions should be made very wisely and with proper research and analysis. Investment is always attached with the element of risk of losing the invested money and this loss is not under the control of the investor. Hence, it is always advisable to measure and analyze all risks involved before making investments. Plenty of investment avenues available for the investors makes their decision making process more critical and complex. There are a number of factors that influence people to make their investment decisions. Demographic factors of investors such as gender, age, education, family size, annual income, and savings have much significance in the Investment Decision Making Process, especially in the Indian context, it assumes greater significance.  MBA admission in Bangalore 2022

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