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Objective Or, Purpose Of Investment

Objective or Purpose of investment depend upon the aim and need of the people and it would be different for different person. With a proper planning by choosing proper investment options as per your need you can achieve most of your life’s aim. Generally one person would invest with many or one of the following objectives in mind.

purpose of investment

  • To Get Regular Income
  • Education/Mirage of Children
  • To Plan for Retirement Life
  • To Preserve Capital
  • To Create Wealth
  • To Start A Business

TO GET REGULAR INCOME

There are some investment options like investment in Real Estate where someone can earn regular income through rent or lease, regular income in form of dividend can be earn by Investment in Bond, Stocks and mutual funds.

EDUCATION / MIRAGE OF CHILDREN

In a survey conducted by Economics Times shows that 60 % people start investment for their child’s education/mirage immediate after birth of the children. Maximum people in India prefer PPF (Public Provident Fund), Fixed Deposits and Insurance Policies for their children.

TO PLAN FOR RETIREMENT LIFE

Experts say investment for retirement should start from the day when you start earning. Now question is how much and where you should invest for the retirement? Initially you can Start with 10% yearly of your total income and increase it as your income grow to 20 – 25 % of your income if you want a comfortable life. There are various ways to invest like EPF, SIP in a Mutual funds and insurance policies.

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