Investing and How to Make Money

Moderate risk; mutual funds can earn significantly more money but can also potentially lose more.

Many professionals, young and old, are looking at investing their money in different areas. Some would choose investing on a start-up or banking it all on mutual funds. But there is one way people can invest their money for the “Betterment.”

In the United States, a society plagued by capitalism, investing has become a way of life. To most Americans it begins with opening a savings account and slowly allowing that money to grow through the compounded interest rate over the years. While it may not seem like a big step in generating more income, nonetheless, this is a positive movement in the market of investments. With the many types of investments available knowing which are reliable, or safe, or yield good returns, are just some of the questions on the investors mind. Within each asset class there are investments to suit different kinds of risk, duration, returns and liquidity.

Major stock market indices globally are trading near the high levels of 2007-2008. Some countries like India have surpassed the previous highs of 2008, and are trading comfortably higher (^BSE, Jan 2008: 20,000 approx.; May 2016: 25,000

The terms saving and investing are often erroneously used by average people to describe the activity of building financial wealth. Knowing the variances between saving and investing, combined with the knowledge of how and when to use each one, is essential to prudent financial planning and for reaching specific financial goals and objectives ("Saving and Investing," 2016). Thus, saving money is a rather passive and safe action, while investing money involves a certain amount of risk; hence, there is a tradeoff between saving and investing, as investing affords the opportunity for increased financial growth ("SEC Questions," 2007). Saving money characteristically involves placing funds in secure places, in particular, bank savings accounts, money markets, and certificates of deposit ("SEC Questions," 2007), therefore, while saving, the overall financial objective is maintaining the security and liquidity of money, as well as preserving money’s initial nominal value ("Saving and Investing," 2016).

The advantages of the Mutual funds are professionally managed by portfolio management, and attempt to generate income such as capital gains on sales, dividends on stocks or interest on bonds for the investors. Most of Investors purchase in mutual funds due to the lack of time or expertise to manage their own portfolios. Investing in a mutual fund is a relatively inexpensive to a small investor to get a full-time portfolio manager to control or monitor their investments.

significant majority of private investors are saving in mutual funds and on the stock market on top of pension savings. There are however several problems with these savings: suboptimal allocation, poor risk diversification, high fees, and lack of tailoring. Furthermore, the general investor has limited interest in, and low level of understanding of the financial system. Also, the average private investor perceives the existing financial products as complex, while trust in advisors is low. Combined, this has resulted in lower than expected returns for the overwhelming majority of investors. User needs fall into four distinctive categories, as shown in table below. In combination, user needs has created a situation where the overwhelming majority

However the scenario is changing to some extent now. People are gaining literacy of financial concepts and basic risk-return analysis which is a positive sign. They are also looking to have a more balanced portfolio like mutual funds and invest in a more disciplined way like Systematic Investment Plans (SIPs). Thus we have more and more financial products coming in India which helps in diversifying their portfolios.

Investing allows an individual to continue earning money 24 hours a day, seven days a week and 365 days a year. It does not matter whether they are working at their day job, mowing their lawn or simply doing nothing. In other words, investing maximizes an individual 's earning potential.

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

The purpose of the report is to primarily analyze the Indian stock broking industry and the various forces which affect the competitive position of firms within the industry. A three-phase analysis is carried out in which the first phase involves detailed research about the history of stock markets in India, the evolution of capital markets over the years during pre-independence era and later stages after independence. Important historical events which had a significant effect on the capital market industry as a whole were analyzed. A comprehensive study on macroeconomic policies which were brought about by the then Indian government in 1991 and their impact on the stock market and stock broking industry is carried out to

Some studies do examine the portfolio management along with the market volatility, impact however; the scope is often limited to a Bangalore. This study takes a look at the awareness of Mutual fund industries its growth in India. If one considers the transactions by domestic mutual funds (MFs) in the equity market an indicator of domestic investor participation in the stock market, domestic investors have been active participants in recent times. But the common perception that domestic investors lack market-moving influence is not entirely based on fact.

Throughout this year, we have seen a large bull run for most of the world’s markets. Stocks have continued to reach all-time highs; the S&P 500 has returned close to 13% year-to-date. Clearly, it’s been a good year so far for the markets and I think we can expect to see the overall market continue to increase in October and for the remainder of the year. By the end of the year I expect to see the S&P have a return of around 15% for the year; below I discuss major economic and market conditions that have lead me to believe this.

160-161). Once these options are reviewed then one can make that optimal decision as to what type of investment would be the best options to choose from. Next, is bonds which is a financial instrument, that is issued by a corporation or government entity and is required to be paid back; known as an IOU. These will mature overtime and gain face value, and usually come in all types and varieties to choose from; some taking as long as 100 years to reach it maturity date. Lately, is mutual funds and EFT’s, these are securities that are held in different sectors and eliminate any form of risk compared to other investment; known as the closed-end fund or the open-ended fund. So, what is a “close-end fund, is a fixed amount of dividends in a portfolio of assets; where shares of a closed-end funds can be traded among investors much like stocks” (Kelly & Williams, 2017, pg. 163).

There is the possibility of that the interest rate for some short term investment may not be a high fluctuation in a short period of time but another benefit is that the investor might get an enormous returns from the short term investment which usually from the share market. Therefore, there is many investors decide to deal with this type of investment, so we can often and always realize a great interest return rate in a very short amount of time. For example, in the share market, the share prices will be volatile in time to time may due to the investors are expected there will be a potential growth in the future for the company project. Another benefit will be from those saving account, fixed deposit and certificate of deposit which the interest rate are fixed, so that the investor may earn some fixed extra earning from the