Advantages of investment

Now the thing is that why should we go for investment? There must be some advantages of investment that make people to invest . So the advantages can be discussed from different aspects of investment. So the first things that I am going to start is

CD

Bank CD is normally the safest way of investment. Normally investments carry a risk of market’s ups and downs .But in case of CD there is minimum risk for the investor. The only disadvantage of CD is the time factor as you cannot get your money back before the time specified in the documents.

Commitments

Commitments are basically the loan that you are looking for. It is may be Government or company bond which can be risky or can not be risky. That can provide quiet a good rate of return on your investment. The security measure in case of Government bond is more in comparison to company bond.

Stocks


Stocks are the investments that you make in different companies. The investment risk may be high or low. The company, having goodwill can provide you more safety than the newly built company. So if you have acquisition in the big company like Johnson & Johnson that can provide you more security about your return. So the big names of the industry can provide you more return.


Investment Funds

The biggest thing about mutual fund is that why should we invest in mutual fund and is there any assurance that I am going to get a handsome return from it. The mutual fund is basically the collection of money from a group of people and then the investment of that collection in stock market.

These are some areas where you can invest in order to generate return. There are some advantages of investments. These are:

Economic growth - Investment is one of the major factors that ensure the economic growth. If the investment level of the country is very high then you can be sure of the fact that the country is growing financially.

Trade - trade is one of the determinants of growth. The increasing rate of investments will definitely contribute to the rise in trade.

Employment - During recession we found that many people lost their jobs and you could notice that the investment level also fell. So the proper investment path will definitely lead to the demolition of unemployment and growth in skill.

Re-investments - Big companies are taking over the sick industries so that the company does not need to close down. The big companies have more money to invest in the small
Firms.