Growth investing

There are two ways  one can invest money: the conservative way and the aggressive way. The first consists mainly of investing in fixed income  instruments (debt securities) as there is less risk of losing capital. The downside, however, is that yields may or may not  beat inflation. On the other hand, the aggressive way is to invest in equity-oriented securities that have the potential  not only to beat inflation, but also to generate higher long-term returns. However, the shares haveMore short-term loss of capital.The conservative way is thus to invest in fixed income securities or debt mutual funds where the riskof capital loss is lower.

Within fixed income securities, one may look at traditional assured returns products or market linked products.The former include bank fixed deposits, government or post office savings like National Savings Certificates or Public Provident Fund, while the latter include tradable bonds and debt mutual funds.The latter do not provide any assurance on returns but are more liFixed income products are also suitable for short to medium-term investment horizons because they are less volatile. In the aggressive way of investing, stocks are key. Years. 

Equity, by definition, provides a portion of a company's or company's profits.The returns on a stock portfolio are directly proportional to the profitability of the companies (stocks) held in the portfolio. A country's economy grows largely because of your business, and stocks are expected to do well when the economy is doing well and may decline when the economy is weak. This is called the  market cycle. Therefore, one should only invest in stocks if one is a long-term investor as it will reduce market volatility or risk  over multiple market cycles.

Within stocks, one can consider stock shares and stock mutual funds. One of the best ways to invest in stocks is through professionally managed and tightly regulated stock mutual funds that offer  variety and convenience. They consist of actively and passively managed funds. Managed equity funds offer returns that match a market index, while actively managed funds seek to outperform the market index. History has shown that not only do stocks have the potential to beat inflation, they do tooalso to generate higher returns and create long-term prosperity. However, investors should be aware that equities carry the potential for short-term capital losses. long term. 

SUMMARY 

An investor can  invest his money either conservatively or aggressively.The former includes investing in fixed income instruments and debt funds, while the latter includes investing in stocks and equity-oriented mutual funds. Fixed income investments may or may not beat inflation, while stock investments have the potential  not only to beat inflation, but to beat it over the long term. One of the best ways to invest in stocks is through stock mutual funds. Investors should be aware that stocks carry the potential for short-term capital losses.There are two guiding principles when investing in stocks, invest regularly and stay invested for the long term.