InvestorQ : What is investment and who all should do investing?
Jignesh Gupta made post

What is investment and who all should do investing?

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Khushi Patel answered.
3 years ago
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To understand what is investments you first need to understand what investment is not! The normal misconception is that putting money in your bank account is an example of investment. The other misconception is that trading aggressively in the stock market is an example of investing. Let us first understand what investing is not…
Basically, investing is not about the short term. It is not about 1 month, 3 months or 1 year. Investing is all about long-term. You put your money in shares for say 10-15 years. That is investing. Then the wealth grows. Investing will not give you returns in 1 year or 2 years. Of course, if you are lucky you can make money in short time. But, that is not the purpose of investing.
Investing is not about putting money in your savings account, FD or even in a money market mutual fund. These are places to keep your money safe with liquidity. Investing is about growing your money steadily over a period of time. Many people will tell you that come on, share market are gambling. It is like a casino. In the short term, probably yes it is very volatile. But in the long run, just look at Sensex. Sensex was 100 in 1979, today it is nearly 30,000. So Sensex is up by 300 times in these many years.
The whole idea of investing is to grow your money. First, you put money and the money earns returns. Then your returns earn returns. Then the returns on returns earn returns. This process goes on and one and that is how investments create wealth for you and for your family.
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