Generally, we confuse word Investments with Savings, though very often these words are used interchangeably. In simple words Savings implies what we save out of our current income for future needs and Investment implies investing in different assets keeping in mind a particular goal for example buying a house, world tour etc. Prime objective of savings is to save for contingencies rather than generating high returns. On the other hand, investment’s prime objective is to generate returns keeping in mind short / mid / long term goals of investor.

Since, our childhood we are listening to a story of “thirsty crow” which still holds good and continue to hold good even after centuries. Let’s compare and contrast the story, imagine our desires as thirst of crow, low level of water in pot as insufficient money balance in our bank accounts. Now, crow starts putting pebbles in pot to make water level sufficiently high so that he can quench his thirst in the same way invest on regular basis so that our bank balance doesn’t remain to be insufficient. Investing in various instruments keeps your financial health sound just as proper exercising and diet keeps your body healthy. Step towards sound investing strategy:

• Discover your risk appetite (refer our risk profile questionnaire)
• Define short-term, mid-term & long-term goals in money value
• Calculate amount to be invested today to make your goal a reality
• Create a plan & starting investing
• Stick to your plan and review periodically

Once goals are defined in money value then there are various instruments through which investments can be done like:

• Mutual Funds (both Debt & Equity)
• Direct Equity
• Corporate Bonds
• Bank Fixed Deposit
• Post Office Term Deposits
• Employees Provident Fund
• Unit Linked Insurance Plans
• Structured Products (like Private Equity, Real Estate Investment Trust etc.)

Proper solution and execution ensures flawless financial support.