Why People Invest?

Everybody wants to become financially free for which he or she save and invest. You invest to make your money grow so that it will shield you against inflation and help you buy whatever you want. If your invested money gives returns that are more than the rate of inflation plus your increasingly growing expenditure, only then can you have a surplus. For every investment, the end goal is the creation of wealth. You can invest in various asset classes like fixed deposits, bonds, gold, property, mutual funds or in shares of companies. Investment decisions should be based on your risk profile, available savings(Investment = Your earnings - Min amount required for your expenditure) and time horizon. You should always remember that risk and returns are directly proportional to each other. So, choose your decision wisely.