As you all know that IBPS PO exam is near.One of the most important parts of this Exam is Descriptive Writing that test Your writing skills, here we are providing you ESSAY/LETTER WRITING Which are asked in the IBPS PO Exam.
Investment in share market: Risks and Rewards
The term investment is positioning of funds with goal of accomplishing added income. The fundamental quality of investment is that it involves expectation of an accolade. There is a promise that the saving will result into some benefits in future. One invests money with a motto to grow it more and more each year. The avenues which are available for people to invest money are many. The common and renowned ones are – stocks , bonds , mutual funds etc.
As stock market is the most convenient form of investing money , it is one of the great ways to make money. People have made a lot of money and on the same platform, they have lost money as well. The stock market is poster child for high risk and high reward investing. There is no assurance or any kind of way knowing where the stock market will fall or rise.
Share market investment is advantageous in many forms. One of the primary advantages is that there are changes of growing money. The stock market tends to rise and fall on a regular basis. Investments in stable companies generate profits for investors and investing in various stocks helps in building wealth by leveraging growth in varied sectors of economy. Also , the stock market makes it easy to buy shares of companies. One can purchase them through a broker, a financial planner, or online. On the other hand , the stock market allows to sell the stock at any time. That’s important if cash is required urgently.
There are various types of risks involved. One of the most obvious risks of investing is that the economy can go bad. It can fluctuate , the terrorists’ attacks in 2001 where the economy settled into a sour spell. Another risk faced by share market investors is that of inflation. It affects the investors by destroying their income stream’s value especially those on fixed term incomes. Sometimes, it may make a person lose his entire investment if a company fares badly. One has to do lot of research of each and every company before investing in it.
Hence , there is nothing wrong with being a conservative or careful investor. However, if you never take any risk, it may be difficult to reach your financial goals. One should be aware of pros and cons and should invest having scrutinized each and every point.