Manage Your Investment by Yourself

As a student we spend almost 20 years to study, study millions of pages but no institution, university teach us how to earn money in order to become reach. You may be genius in study but you can not earn money unless you have financial intelligence. Financially intelligent means managing your money in such a way that you become richer every day. That means to manage your cash flow in such a way that cash inflow should be more than your cash outflow.

Getting richer every day is possible through the investment of your money. Let your money to operate in the market as your slave. This helps your money to grow. If you keep your money in the locker then your money will not grow. The inflation will reduce the value of your locked money. So invest your money to avoid inflation effect and earn more money from your investment.

People usually invest to generate higher return than their investment. The bank CD is usually that kind place. But bank CD provides safety. In order to become reach you have to invest your money in some other option of investment. However, this is true that the investment is not free of risk and the return always will not be as higher as required. On the other hand if you can manage your investment and risk you can maximize your return.

This article is not a call for you to start gambling but it tells you to build your portfolio in such a way that your risk can be minimized and get optimum return. Now the question is where the investment should be done. For this you should know the investment option available in the market.

One can invest in equity shares.

One can invest in mutual fund, debt related funds. Bank fixed deposit, company fixed deposit.

In Equity market you should purchase shares instead of certificates. This is because the equity shares make you a proportionate owner of the company. Here also you can lend your money to the companies like a owner. If companies make profit then you gain interest and if the companies make loss you also loose money. The debt market provides you lower return with safety. The equity market is risky and there is uncertainty in return but if the market is operating well then you will get healthy return.

So you must have control over your investment to ensure positive return. In short your every step should be backed by a strategy and proper planning.