InvestorQ : What is not investing; I am told putting in bank account is not investing
Abhisha Yadav made post

What is not investing; I am told putting in bank account is not investing

Answer
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2 years ago


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. You cannot grow your money in bank FD. See, bank FD pays you only around 6% on FDs. So if you put Rs.10,000 in the FD today then it will take you at least 12 years to double the money. Look at how Eicher has moved in the last 12 years. It went from Rs.200 to Rs.30,000. All that is only possible with buying equities! That is real investing. That is not trading or gambling. Just buy and sit tight for a long time.