{"id":10262,"date":"2025-09-08T11:15:34","date_gmt":"2025-09-08T05:45:34","guid":{"rendered":"https:\/\/www.5paisa.com\/finschool\/?post_type=markets&#038;p=10262"},"modified":"2025-09-08T18:35:46","modified_gmt":"2025-09-08T13:05:46","slug":"investment-basics","status":"publish","type":"markets","link":"https:\/\/www.5paisa.com\/finschool\/course\/stock-market-basics-course\/investment-basics\/","title":{"rendered":"Learn Investment Basics From Stock Market Basics Course For Beginners"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"10262\" class=\"elementor elementor-10262\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-23ba90b elementor-section-full_width tab_container elementor-section-height-default elementor-section-height-default\" data-id=\"23ba90b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b6a6f9f\" data-id=\"b6a6f9f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-e0f864e elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"e0f864e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-wide\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-7efb245 chapters_list\" data-id=\"7efb245\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-33d4575 elementor-widget elementor-widget-shortcode\" data-id=\"33d4575\" data-element_type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-shortcode\">\t<script>\n\t\tjQuery(document).ready(function(){\n\t\t\tjQuery(\"#post_chapters a[href*='\" + location.pathname + \"']\").addClass(\"current\");\n\t\t})\n\t<\/script>\n\t<div class=\"desktop_chapters\"><div id=\"post_chapters\"><div class=\"post_chapters-heading\">Chapters<\/div><ul><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/stock-market-basics-course\/investment-basics\/\">Investment Basics<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/stock-market-basics-course\/securities\/\">What are Securities?<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/stock-market-basics-course\/market-intermediaries\/\">Market Intermediaries<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/stock-market-basics-course\/learn-more-about-primary-market-from-stock-market-basic-course\/\">Primary Market<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/stock-market-basics-course\/ipo-basics\/\">IPO Basics<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/stock-market-basics-course\/secondary-market\/\">Secondary Market<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/stock-market-basics-course\/products-in-secondary-market\/\">Products In Secondary Market<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/stock-market-basics-course\/stock-market-indices\/\">Stock Market Indices<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/stock-market-basics-course\/who-are-depositories\/\">Commonly Used Jargons<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/stock-market-basics-course\/learn-trading-terminal-from-stock-market-course\/\">Trading Terminal<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/stock-market-basics-course\/learn-clearing-and-settlement-process-from-stock-market-course\/\">Clearing and Settlement Process<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/stock-market-basics-course\/learn-corporate-actions-and-impact-on-stock-prices-from-stock-market-course\/\">Corporate actions and impact on stock prices<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/stock-market-basics-course\/learn-about-market-mood-swings-from-stock-market-course\/\"> Market\u2019s Mood Swings<\/a><\/li><\/ul><\/div><\/div><div class=\"chapters_toggle\" title=\"chapters\"><a title=\"chapters\" href=\"#\" id=\"open_chapters\"><span>View Chapters<\/span>&nbsp;&nbsp;&nbsp;<i class=\"fa fa-chevron-right\"><\/i><\/a><a title=\"chapters\" href=\"#\" id=\"close_chapters\" style=\"display:none;\"><span>Hide Chapters<\/span>&nbsp;&nbsp;&nbsp;<i class=\"fa fa-chevron-right\"><\/i><\/a><\/div>\t<script>\n\t\tjQuery(document).ready(function(){\n\t\t\tjQuery('.chapters_toggle #open_chapters').click(function(e){\n\t\t\t\te.preventDefault();\n\t\t\t\tjQuery('.desktop_chapters').css(\"left\",\"0px\");\n\t\t\t\tjQuery('#open_chapters').css(\"display\",\"none\");\n\t\t\t\tjQuery('#close_chapters').css(\"display\",\"block\");\n\t\t\t\t\/\/jQuery('.chapters_toggle').css(\"width\",\"200px\");\n\t\t\t})\n\t\t\tjQuery('.chapters_toggle #close_chapters').click(function(e){\n\t\t\t\te.preventDefault();\n\t\t\t\tjQuery('.desktop_chapters').css(\"left\",\"-480px\");\n\t\t\t\tjQuery('#open_chapters').css(\"display\",\"block\");\n\t\t\t\tjQuery('#close_chapters').css(\"display\",\"none\");\n\t\t\t\t\/\/jQuery('.chapters_toggle').css(\"width\",\"100%\");\n\t\t\t})\n\t\t});\n\t<\/script>\n\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-93f371b tabs_contents\" data-id=\"93f371b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-90f6d06 market_content_tabs elementor-widget elementor-widget-eael-adv-tabs\" data-id=\"90f6d06\" data-element_type=\"widget\" data-widget_type=\"eael-adv-tabs.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t        <div data-scroll-on-click=\"no\" data-scroll-speed=\"300\" id=\"eael-advance-tabs-90f6d06\" class=\"eael-advance-tabs eael-tabs-horizontal eael-tab-auto-active \" data-tabid=\"90f6d06\">\n            <div class=\"eael-tabs-nav\">\n                <ul class=\"eael-tab-inline-icon\" role=\"tablist\">\n                                            <li id=\"study\" class=\"active-default eael-tab-item-trigger eael-tab-nav-item\" aria-selected=\"true\" data-tab=\"1\" role=\"tab\" tabindex=\"0\" aria-controls=\"study-tab\" aria-expanded=\"false\">\n                            \n                                                                <i class=\"far fa-edit\"><\/i>                                                            \n                                                            <span class=\"eael-tab-title title-after-icon\" >Study<\/span>                            \n                                                    <\/li>\n                                            <li id=\"slides\" class=\" eael-tab-item-trigger eael-tab-nav-item\" aria-selected=\"false\" data-tab=\"2\" role=\"tab\" tabindex=\"-1\" aria-controls=\"slides-tab\" aria-expanded=\"false\">\n                            \n                                                                <i class=\"fas fa-book-open\"><\/i>                                                            \n                                                            <span class=\"eael-tab-title title-after-icon\" >Slides<\/span>                            \n                                                    <\/li>\n                                            <li id=\"videos\" class=\" eael-tab-item-trigger eael-tab-nav-item\" aria-selected=\"false\" data-tab=\"3\" role=\"tab\" tabindex=\"-1\" aria-controls=\"videos-tab\" aria-expanded=\"false\">\n                            \n                                                                <i class=\"far fa-eye\"><\/i>                                                            \n                                                            <span class=\"eael-tab-title title-after-icon\" >Videos<\/span>                            \n                                                    <\/li>\n                                    <\/ul>\n            <\/div>\n            \n            <div class=\"eael-tabs-content\">\n\t\t        \n                    <div id=\"study-tab\" class=\"clearfix eael-tab-content-item active-default\" data-title-link=\"study-tab\">\n\t\t\t\t        <p><div class='white' style='background:rgb(255, 255, 255); border:solid 0px rgb(255, 255, 255); border-radius:0px; padding:0px 0px 0px 1px;'>\n<div id='text_slider' class='owl-carousel sa_owl_theme owl-pagination-true' data-slider-id='text_slider' style='visibility: visible;visibility:visible;'>\n<div id='text_slider_slide01' class='sa_hover_container' data-hash='What-Is-Investing-&#038;-Why-to-Invest?' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h2 style=\"text-align: left\"><span style=\"color: #000000\"><strong>1.1 What Is Investing &amp; Why to Invest?<\/strong><\/span><\/h2>\r\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-47067 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Need-to-Invest.png\" alt=\"investing for beginners\" width=\"920\" height=\"814\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Need-to-Invest.png 920w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Need-to-Invest-300x265.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Need-to-Invest-768x680.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Need-to-Invest-50x44.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Need-to-Invest-100x88.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Need-to-Invest-150x133.png 150w\" sizes=\"(max-width: 920px) 100vw, 920px\" \/><\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p><strong>\u201c Investing puts money to work. The only reason to save money is to invest it.\u201d- Grant Cardone<\/strong><\/p>\r\n<p>Grant Cardone is a well-known entrepreneur, real estate investor, motivational speaker, and author. His quote explains us how important investing is. Investing puts money to work. Its True. Because in this era of rapid economic shifts , inflationary pressures, and evolving financial landscape investing is no longer optional \u2013 Its\u00a0a necessity !<\/p>\r\n<p>Today Global economy demands a protective approach to wealth building and investing wisely is the only solution for long term success.<\/p>\r\n<h3><b><\/b><strong>What <\/strong><strong>is<\/strong><strong>\u00a0<\/strong><strong>Investing<\/strong><strong>\u00a0<\/strong><strong>&amp;<\/strong><strong>\u00a0<\/strong><strong>Why<\/strong><strong>\u00a0<\/strong><strong>to<\/strong><strong>\u00a0Invest?<\/strong><\/h3>\r\n<p>Investing is the process of allocating money or resources into assets with the expectation of generating returns over time. These assets can include stocks, bonds, real estate, mutual funds, commodities, or even businesses. Unlike saving, which involves keeping money in a safe place like a bank account, investing involves putting money to work in vehicles that have the potential to grow in value.<\/p>\r\n<p>Lets understand this with the help of an example. Nirav and Vedant are best friends. Both worked hard and earned a decent income, but they had different approaches to managing their money.<\/p>\r\n<p><strong>Nirav<\/strong><strong>\u00a0<\/strong><strong>\u2013<\/strong><strong>\u00a0<\/strong><strong>The<\/strong><strong>\u00a0<\/strong><strong>Saver<\/strong><\/p>\r\n<p>Nirav was cautious. Every month, he carefully set aside a portion of his salary in his savings account. He felt secure knowing he had money for emergencies. His account grew slowly, and he was content seeing his balance rise little by little.<\/p>\r\n<p><strong>Vedant<\/strong><strong>\u00a0<\/strong><strong>\u2013<\/strong><strong>\u00a0<\/strong><strong>The<\/strong><strong>\u00a0<\/strong><strong>Investor<\/strong><\/p>\r\n<p>Vedant, on the other hand, believed that money should grow. While he also kept some money in savings for emergencies, he invested a portion in stocks, mutual funds, and real estate. He understood that investing came with risks, but he believed in the power of compounding and market growth.<\/p>\r\n<p><strong><em><b><i>Now<\/i><\/b><\/em><\/strong><strong><em><b><i>\u00a0<\/i><\/b><\/em><\/strong><strong><em><b><i>Imagine<\/i><\/b><\/em><\/strong><strong><em><b><i>\u00a0<\/i><\/b><\/em><\/strong><strong><em><b><i>the<\/i><\/b><\/em><\/strong><strong><em><b><i>\u00a0<\/i><\/b><\/em><\/strong><strong><em><b><i>situation<\/i><\/b><\/em><\/strong><strong><em><b><i>\u00a0<\/i><\/b><\/em><\/strong><strong><em><b><i>after<\/i><\/b><\/em><\/strong><strong><em><b><i>\u00a0<\/i><\/b><\/em><\/strong><strong><em><b><i>10<\/i><\/b><\/em><\/strong><strong><em><b><i>\u00a0<\/i><\/b><\/em><\/strong><strong><em><b><i>years<\/i><\/b><\/em><\/strong><\/p>\r\n<p>Nirav had built up a reasonable savings amount, but inflation had slowly eaten away all its value. The rising cost of living meant his money wasn\u2019t worth as much as before.<\/p>\r\n<p>Meanwhile, Vedant\u2019s investments had multiplied, benefiting from market growth and compound returns. His money was working for him even while he slept, and\u00a0he had multiple streams of income from dividends and assets.<\/p>\r\n<p><em><strong>What<\/strong><strong>\u00a0<\/strong><strong>did<\/strong><strong>\u00a0<\/strong><strong>you<\/strong><strong>\u00a0<\/strong><strong>learn<\/strong><strong>\u00a0<\/strong><strong>from<\/strong><strong>\u00a0<\/strong><strong>this?<\/strong><strong>\u00a0<\/strong><strong>There<\/strong><strong>\u00a0<\/strong><strong>are<\/strong><strong>\u00a0<\/strong><strong>two<\/strong><strong>\u00a0<\/strong><strong>important<\/strong><strong>\u00a0points<\/strong><\/em><\/p>\r\n<ul>\r\n<li>Savings provide safety and liquidity but grow\u00a0<\/li>\r\n<li>Investmentscome\u00a0with\u00a0risks\u00a0but\u00a0have\u00a0the\u00a0potential\u00a0for\u00a0higher\u00a0returns\u00a0and\u00a0wealth creation.<\/li>\r\n<\/ul>\r\n<h3><strong>Why<\/strong><strong>\u00a0<\/strong><strong>Should<\/strong><strong>\u00a0<\/strong><strong>You<\/strong><strong>\u00a0<\/strong><strong>Invest?<\/strong><\/h3>\r\n<ol>\r\n<li><b><\/b>Beat Inflation\u00a0&amp;\u00a0Preserve\u00a0Wealth<\/li>\r\n<li>CompoundGrowth\u00a0&amp;\u00a0Wealth\u00a0Multiplication<\/li>\r\n<li>Create Multiple\u00a0Income\u00a0Streams<\/li>\r\n<li>Financial Independence\u00a0&amp;\u00a0Security<\/li>\r\n<li>Smart Risk\u00a0Management\u00a0for\u00a0Higher\u00a0Returns<\/li>\r\n<\/ol>\r\n<p>After understanding the what and why of investing, the next step is to explore the risks that come with it. While investing opens doors to long-term wealth creation and financial freedom, it&#8217;s important to recognize that it isn\u2019t without challenges. Now let\u2019s shed some light on the various risks investors face and how informed decisions can transform risk into opportunity.<\/p>\r\n<p>&nbsp;<\/p><\/div>\n<div id='text_slider_slide02' class='sa_hover_container' data-hash='Investing-Risks' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h2 style=\"text-align: left\"><strong>1.2 Risks Associated With Investing<\/strong><\/h2>\r\n<p><img decoding=\"async\" class=\"aligncenter wp-image-47090 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Risks-Associated-With-Investing.png\" alt=\"Risks While Investing In Stock Markets\" width=\"983\" height=\"781\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Risks-Associated-With-Investing.png 983w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Risks-Associated-With-Investing-300x238.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Risks-Associated-With-Investing-768x610.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Risks-Associated-With-Investing-50x40.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Risks-Associated-With-Investing-100x79.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Risks-Associated-With-Investing-150x119.png 150w\" sizes=\"(max-width: 983px) 100vw, 983px\" \/><\/p>\r\n<p><strong><em><i>\u201c<\/i><\/em><em><i>\u00a0<\/i><\/em><em><i>Risk<\/i><\/em><em><i>\u00a0<\/i><\/em><em><i>comes<\/i><\/em><em><i>\u00a0<\/i><\/em><em><i>from<\/i><\/em><em><i>\u00a0<\/i><\/em><em><i>not<\/i><\/em><em><i>\u00a0<\/i><\/em><em><i>knowing<\/i><\/em><em><i>\u00a0<\/i><\/em><em><i>what<\/i><\/em><em><i>\u00a0<\/i><\/em><em><i>you&#8217;re<\/i><\/em><em><i>\u00a0<\/i><\/em><em><i>doing.\u201d<\/i><\/em><em><i>\u00a0<\/i><\/em><em><i>\u2013<\/i><\/em><em><i>\u00a0<\/i><\/em><em><i>Warren<\/i><\/em><em><i>\u00a0<\/i><\/em><em><i>Buffett<\/i><\/em><\/strong><\/p>\r\n<p>Warren Buffett stresses that the greatest investment risk comes from ignorance, not market volatility. Investors who act on emotion or follow trends without understanding what they\u2019re investing in are essentially gambling. In contrast, informed investors who research company fundamentals, grasp market cycles, and diversify wisely can better manage uncertainty and reduce losses. While investing offers strong potential for financial growth, it also carries inherent risks, knowing and understanding these risks is key to building smart strategies that protect capital and enhance returns.<\/p>\r\n<ol>\r\n<li><b><\/b>\r\n<h4><strong>Market <\/strong><strong>Risk<\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Market risk is the potential for losses due to broad market fluctuations caused by factors like economic downturns, political instability, pandemics, or financial crises. A prime example is the 2008 Global Financial Crisis, when stock markets worldwide plunged as major financial institutions collapsed and the housing\u00a0bubble burst, impacting investments across stocks, bonds, and commodities,regardless of individual company strength. While market risk affects the entire financial system and cannot be eliminated, it can be managed through diversification and a long-term investment approach.<\/p>\r\n<ol start=\"2\">\r\n<li><b><\/b>\r\n<h4><strong>Inflation <\/strong><strong>Risk<\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Inflation risk occurs when the value of money erodes over time, reducing the real returns on investments that don\u2019t keep pace with rising prices. For instance, earning 5% annually on a fixed deposit while inflation runs at 6% results in a net loss of purchasing power. A historical example is the 1970s oil crisis, where soaring oil prices triggered global inflation, diminishing the value of fixed-income assets like bonds and savings. To preserve wealth, investors should consider assets that typically outpace inflation, such as equities, real estate, or inflation-indexed bonds.<\/p>\r\n<ol start=\"3\">\r\n<li><b><\/b>\r\n<h4><strong>Liquidity <\/strong><strong>Risk<\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Liquidity risk arises when an investor cannot quickly sell an asset without impacting its price. While stocks and mutual funds are generally easy to trade, assets like real estate, fine art, or private equity can take much longer to liquidate. A notable example is Yes Bank\u2019s 2020 crisis, where financial instability left depositors unable to access their funds, emphasizing the importance of evaluating an institution\u2019s financial health and maintaining a balanced mix of liquid and long-term investments to manage this risk effectively.<\/p>\r\n<ol start=\"4\">\r\n<li><b><\/b>\r\n<h4><strong>Interest <\/strong><strong>Rate<\/strong><strong>\u00a0Risk<\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Interest rate risk\u00a0affects\u00a0bonds\u00a0and fixed-income securities, as\u00a0rising\u00a0interest rates typically lead to falling bond prices, reducing the value of existing holdings. Investors should closely monitor central bank policies, like RBI\u2019s rate decisions, to anticipate such shifts. For instance, RBI\u2019s rate hikes in 2022 caused a drop in bond prices, impacting long-term fixed-income investors. Mortgage borrowers with floating-rate\u00a0loans\u00a0also\u00a0face\u00a0this\u00a0risk,\u00a0as\u00a0rising\u00a0rates\u00a0lead\u00a0to\u00a0higher\u00a0repayments\u00a0and increased financial pressure.<\/p>\r\n<ol start=\"5\">\r\n<li><b><\/b>\r\n<h4><strong>Credit <\/strong><strong>Risk<\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Credit risk is the possibility that a borrower, whether a corporation or government, fails to meet its financial obligations, posing a threat to investors in bonds, loans, or other debt instruments. This can be mitigated by choosing high- credit-rating securities and conducting thorough financial analysis. A striking example is Kingfisher Airlines, whose owner Vijay Mallya borrowed extensively but failed to generate profits, leading to loan defaults and the airline\u2019s collapse. Indian banks faced major losses, highlighting the dangers of lending to companies with poor financial fundamentals.<\/p>\r\n<ol start=\"6\">\r\n<li><b><\/b>\r\n<h4><strong>Business <\/strong><strong>&amp;<\/strong><strong>\u00a0<\/strong><strong>Industry<\/strong><strong>\u00a0<\/strong><strong>Risk<\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Business risk refers to challenges specific to a company or industry, such as poor management, regulatory shifts, competition, or technological disruption. A prime example is Kodak\u2019s decline in the early 2000s, once a photography giant, it failed to adapt to the digital revolution, while rivals like Sony and Canon embraced innovation,\u00a0leading\u00a0to\u00a0Kodak\u2019s\u00a0bankruptcy\u00a0in\u00a02012.\u00a0Similarly,\u00a0Jet\u00a0Airways\u2019\u00a0downfall in 2019 stemmed from mismanagement, rising fuel costs, and fierce competition from low-cost carriers like IndiGo, resulting in suspended operations and insolvency. These cases illustrate how even established firms can falter if they don\u2019t respond effectively to evolving market dynamics. Diversifying across sectors helps mitigate such risks.<\/p>\r\n<ol start=\"7\">\r\n<li><b><\/b>\r\n<h4><strong>Exchange <\/strong><strong>Rate<\/strong><strong>\u00a0<\/strong><strong>Risk<\/strong><strong>\u00a0<\/strong><strong>(Currency<\/strong><strong>\u00a0<\/strong><strong>Risk)<\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Exchange rate risk affects investors holding foreign assets, as currency fluctuations can influence returns. For example, if the Indian Rupee depreciates against the U.S. Dollar, returns from U.S. investments may decline for Indian investors. During the COVID-19 pandemic, global uncertainties triggered volatile currency movements\u2014while the rupee\u2019s depreciation increased costs for import- dependent businesses and foreign debt holders, exporters benefited as their foreign earnings translated into higher INR\u00a0values. Currency hedging strategies can help manage this risk and protect investment returns.<\/p>\r\n<ol start=\"8\">\r\n<li><b><\/b>\r\n<h4><strong>Emotional <\/strong><strong>&amp;<\/strong><strong>\u00a0<\/strong><strong>Behavioral<\/strong><strong>\u00a0Risk<\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Investing isn\u2019t just a numbers game,it\u2019s deeply influenced by psychology. Emotional decisions driven by fear, greed, or herd mentality often lead to costly mistakes, like panic-selling during downturns or chasing high returns without understanding fundamentals. A striking example is the cryptocurrency hype in India, where many investors bought Bitcoin at peak prices due to FOMO, only to face heavy losses when the market corrected. Maintaining emotional discipline\u00a0and following a well-researched strategy is key. While understanding risks helps avoid pitfalls, timing is equally crucial,starting early unlocks the power of compounding, allowing your money to grow exponentially over time and shaping a stronger financial future.<\/p>\r\n<p style=\"padding-left: 40px\">\u00a0<\/p><\/div>\n<div id='text_slider_slide03' class='sa_hover_container' data-hash='When-To-Start-Investing' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h2 style=\"text-align: left\"><span style=\"color: #000000\"><strong>1.3 When To Start Investing?<\/strong><\/span><\/h2>\r\n<p><img decoding=\"async\" class=\"aligncenter wp-image-47117 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/When-To-Start-Investing.png\" alt=\"When To Start Investing\" width=\"997\" height=\"849\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/When-To-Start-Investing.png 997w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/When-To-Start-Investing-300x255.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/When-To-Start-Investing-768x654.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/When-To-Start-Investing-50x43.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/When-To-Start-Investing-100x85.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/When-To-Start-Investing-150x128.png 150w\" sizes=\"(max-width: 997px) 100vw, 997px\" \/><\/p>\r\n<p>Often even before investing the first question that comes to our mind is When to Start Investing? What is the Right time and age to start investing?<\/p>\r\n<p><strong>Well<\/strong><strong>\u00a0<\/strong><strong>the<\/strong><strong>\u00a0<\/strong><strong>answer<\/strong><strong>\u00a0<\/strong><strong>is<\/strong><strong>\u00a0<\/strong><strong>quite<\/strong><strong>\u00a0<\/strong><strong>simple<\/strong><strong>\u00a0<\/strong><strong>\u2013<\/strong><strong>\u00a0<\/strong><strong>As<\/strong><strong>\u00a0<\/strong><strong>Early<\/strong><strong>\u00a0<\/strong><strong>As<\/strong><strong>\u00a0<\/strong><strong>Possible!<\/strong><\/p>\r\n<p>The sooner you start investing, the more time your money has to grow due to the power of compounding\u2014where earnings generate more earnings over time. However, the right time to start investing depends on factors like financial stability, risk tolerance, and investment goals.<\/p>\r\n<p>Lets\u00a0understand\u00a0this\u00a0with\u00a0the\u00a0help\u00a0of\u00a0an\u00a0example<\/p>\r\n<h3><strong>Example:<\/strong><strong>\u00a0<\/strong><strong>The<\/strong><strong>\u00a0<\/strong><strong>Power<\/strong><strong>\u00a0<\/strong><strong>of<\/strong><strong>\u00a0<\/strong><strong>Early<\/strong><strong>\u00a0<\/strong><strong>Investing<\/strong><\/h3>\r\n<p>Now\u00a0Nirav\u00a0and\u00a0Vedant\u00a0example<\/p>\r\n<p>Suppose Vedant starts to invest \u20b95,000 per month at age 25, while Nirav delays investing until 35. Assuming a 10% annual return, here\u2019s how their investments grow by the age of 55:<\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td width=\"182\">\r\n<p><strong>Age<\/strong><strong>\u00a0<\/strong><strong>Started<\/strong><\/p>\r\n<\/td>\r\n<td width=\"301\">\r\n<p><strong>Monthly<\/strong><strong>\u00a0<\/strong><strong>Investment<\/strong><\/p>\r\n<\/td>\r\n<td width=\"215\">\r\n<p><strong>Total<\/strong><strong>\u00a0<\/strong><strong>Invested<\/strong><\/p>\r\n<\/td>\r\n<td width=\"372\">\r\n<p><strong>Value<\/strong><strong>\u00a0<\/strong><strong>at<\/strong><strong>\u00a0<\/strong><strong>55<\/strong><strong>\u00a0<\/strong><strong>(10%<\/strong><strong>\u00a0<\/strong><strong>return)<\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"182\">\r\n<p>Vedant(25)<\/p>\r\n<\/td>\r\n<td width=\"301\">\r\n<p>\u20b95,000<\/p>\r\n<\/td>\r\n<td width=\"215\">\r\n<p>\u20b918 lakhs<\/p>\r\n<\/td>\r\n<td width=\"372\">\r\n<p>\u20b91.13\u00a0crore<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"182\">\r\n<p>Nirav\u00a0(35)<\/p>\r\n<\/td>\r\n<td width=\"301\">\r\n<p>\u20b95,000<\/p>\r\n<\/td>\r\n<td width=\"215\">\r\n<p>\u20b912 lakhs<\/p>\r\n<\/td>\r\n<td width=\"372\">\r\n<p>\u20b938.71\u00a0lakhs<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p><strong>CASE<\/strong><strong>\u00a0<\/strong><strong>1<\/strong><\/p>\r\n<p><strong>Compounding<\/strong><strong>\u00a0<\/strong><strong>Calculation<\/strong><strong>\u00a0<\/strong><strong>for<\/strong><strong>\u00a0<\/strong><strong>Vedant<\/strong><\/p>\r\n<p>The\u00a0formula\u00a0for\u00a0<strong>compound<\/strong><strong>\u00a0<\/strong><strong>interest<\/strong><strong>\u00a0<\/strong>is:<\/p>\r\n<p><strong>A=P(1+r\/n)<\/strong><strong><sup>nt<\/sup><\/strong><\/p>\r\n<p>Where:<\/p>\r\n<ul>\r\n<li>A=\u00a0Future\u00a0value\u00a0of\u00a0investment<\/li>\r\n<li>P=\u00a0Monthly\u00a0investment\u00a0amount<\/li>\r\n<li>r=\u00a0Annual\u00a0interest\u00a0rate\u00a0(in\u00a0decimal)<\/li>\r\n<li>n=\u00a0Compounding\u00a0frequency\u00a0per\u00a0year<\/li>\r\n<li>t=\u00a0Number\u00a0of\u00a0years<\/li>\r\n<\/ul>\r\n<p><strong>For<\/strong><strong>\u00a0<\/strong><strong>Vedant<\/strong><strong>\u00a0<\/strong><strong>(Investing<\/strong><strong>\u00a0<\/strong><strong>\u20b95,000\/month<\/strong><strong>\u00a0<\/strong><strong>from<\/strong><strong>\u00a0<\/strong><strong>Age<\/strong><strong>\u00a0<\/strong><strong>25<\/strong><strong>\u00a0<\/strong><strong>to<\/strong><strong>\u00a0<\/strong><strong>55)<\/strong><\/p>\r\n<ul>\r\n<li><strong>Monthly<\/strong><strong>Investment<\/strong><strong>\u00a0<\/strong><strong>(P):<\/strong><strong>\u00a0<\/strong>\u20b95,000<\/li>\r\n<li><strong>Total<\/strong><strong>Years<\/strong><strong>\u00a0<\/strong><strong>(t):<\/strong><strong>\u00a0<\/strong>30<\/li>\r\n<li><strong>Annual<\/strong><strong>Rate<\/strong><strong>\u00a0<\/strong><strong>(r):<\/strong><strong>\u00a0<\/strong>10%\u00a0or\u00a010<\/li>\r\n<li><strong>Compounded<\/strong><strong>Monthly<\/strong><strong>\u00a0<\/strong>(n\u00a0=\u00a012)<\/li>\r\n<\/ul>\r\n<p><strong>Using<\/strong><strong>\u00a0<\/strong><strong>the<\/strong><strong>\u00a0<\/strong><strong>SIP<\/strong><strong>\u00a0<\/strong><strong>formula<\/strong><strong>\u00a0<\/strong><strong>for<\/strong><strong>\u00a0<\/strong><strong>monthly<\/strong><strong>\u00a0<\/strong><strong>investments:<\/strong><\/p>\r\n<p><strong>FV=P\u00d7(1+r\/n)<sup>nt<\/sup>\u22121\/r\/n)\u00d7(1+r\/n)<\/strong><\/p>\r\n<p>Step 1: Substitute the values into the formula FV=5000\u00d7((1+0.10\/12)<sup>12\u00d730<\/sup>\u22121\/0.10\/12)\u00d7(1+0.10\/12)<\/p>\r\n<p><strong>Step<\/strong><strong>\u00a0<\/strong><strong>2:<\/strong><strong>\u00a0<\/strong><strong>Solve<\/strong><strong>\u00a0<\/strong><strong>for<\/strong><strong>\u00a0<\/strong><strong>(1<\/strong><strong>\u00a0<\/strong><strong>+<\/strong><strong>\u00a0<\/strong><strong>r\/n)<\/strong><\/p>\r\n<p>1+0.10\/12=1+0.0083333=1.0083333<\/p>\r\n<p><strong>Step<\/strong><strong>\u00a0<\/strong><strong>3:<\/strong><strong>\u00a0<\/strong><strong>Calculate<\/strong><strong>\u00a0<\/strong><strong>the<\/strong><strong>\u00a0<\/strong><strong>exponent<\/strong><strong>\u00a0<\/strong><strong>12\u00d730<\/strong><\/p>\r\n<p>(1.0083333)<sup>360<\/sup><\/p>\r\n<p>Using\u00a0exponentiation: (1.0083333)<sup>360<\/sup>\u224819.92<\/p>\r\n<p><strong>Step<\/strong><strong>\u00a0<\/strong><strong>4:<\/strong><strong>\u00a0<\/strong><strong>Solve<\/strong><strong>\u00a0<\/strong><strong>the<\/strong><strong>\u00a0<\/strong><strong>fraction<\/strong><strong>\u00a0<\/strong><strong>inside<\/strong><strong>\u00a0<\/strong><strong>the<\/strong><strong>\u00a0<\/strong><strong>brackets<\/strong><\/p>\r\n<p>(19.92\u22121)\/0.0083333<\/p>\r\n<p>=18.92\/0.0083333<\/p>\r\n<p>=2,271.84<\/p>\r\n<p><strong>Step<\/strong><strong>\u00a0<\/strong><strong>5:<\/strong><strong>\u00a0<\/strong><strong>Multiply<\/strong><strong>\u00a0<\/strong><strong>by<\/strong><strong>\u00a0<\/strong><strong>(1<\/strong><strong>\u00a0<\/strong><strong>+<\/strong><strong>\u00a0<\/strong><strong>r\/n)<\/strong><\/p>\r\n<p>(1+0.0083333)=1.0083333<\/p>\r\n<p>2,271.84\u00d71.0083333=2,290.81<\/p>\r\n<p><strong>Step<\/strong><strong>\u00a0<\/strong><strong>6:<\/strong><strong>\u00a0<\/strong><strong>Multiply<\/strong><strong>\u00a0<\/strong><strong>by<\/strong><strong>\u00a0<\/strong><strong>the<\/strong><strong>\u00a0<\/strong><strong>monthly<\/strong><strong>\u00a0<\/strong><strong>investment<\/strong><\/p>\r\n<p>FV=5000\u00d72,290.81<\/p>\r\n<p><strong>FV=\u20b91.14<\/strong><strong>\u00a0<\/strong><strong>Crore<\/strong><\/p>\r\n<p><strong>Vedant\u2019s\u00a0investment\u00a0grows\u00a0to\u00a0\u20b91.14\u00a0crore\u00a0lakhs\u00a0at\u00a0age\u00a055. Compounding\u00a0Table\u00a0Showing\u00a0Vedant\u2019s\u00a0Investment\u00a0Growth- AGE-25<\/strong><\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td width=\"234\">\r\n<p><strong><b>Age<\/b><\/strong><\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p><strong><b>Total Invested (\u20b9)<\/b><\/strong><\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p><strong><b>Future Value (\u20b9)<\/b><\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>25<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 60,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 62,811<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>26<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 1,20,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 1,31,828<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>27<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 1,80,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 2,06,183<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>28<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 2,40,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 2,86,224<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>29<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 3,00,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 3,72,320<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>30<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 3,60,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 4,64,866<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>31<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 4,20,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 5,64,288<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>32<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 4,80,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 6,71,051<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>33<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 5,40,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 7,85,659<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>34<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 6,00,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 9,08,648<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>35<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 6,60,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 10,40,593<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>36<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 7,20,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 11,82,105<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>37<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 7,80,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 13,33,832<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>38<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 8,40,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 14,96,472<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>39<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 9,00,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 16,70,773<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>40<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 9,60,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 18,57,531<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>41<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 10,20,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 20,57,602<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>42<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 10,80,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 22,71,896<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>43<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 11,40,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 25,01,377<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>44<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 12,00,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 27,47,069<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>45<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 12,60,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 30,10,059<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>46<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 13,20,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 32,91,492<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>47<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 13,80,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 35,92,576<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>48<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 14,40,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 39,14,589<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>49<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 15,00,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 42,58,870<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>50<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 15,60,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 46,26,827<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>51<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 16,20,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 50,19,932<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>52<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 16,80,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 54,39,720<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>53<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 17,40,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 58,87,795<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>54<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 18,00,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p>\u20b9 63,65,830<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"234\">\r\n<p>55<\/p>\r\n<\/td>\r\n<td width=\"390\">\r\n<p>\u20b9 18,60,000<\/p>\r\n<\/td>\r\n<td width=\"477\">\r\n<p><strong><b>\u20b9 1,14,00,230<\/b><\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p><strong>\u00a0<\/strong><strong>CASE<\/strong><strong>\u00a0<\/strong><strong>2-<\/strong><strong>\u00a0<\/strong><strong>For<\/strong><strong>\u00a0<\/strong><strong>Nirav<\/strong><strong>\u00a0<\/strong><strong>(Investing<\/strong><strong>\u00a0<\/strong><strong>\u20b95,000\/month<\/strong><strong>\u00a0<\/strong><strong>from<\/strong><strong>\u00a0<\/strong><strong>Age<\/strong><strong>\u00a0<\/strong><strong>35<\/strong><strong>\u00a0<\/strong><strong>to<\/strong><strong>\u00a055)<\/strong><\/p>\r\n<ul>\r\n<li><strong>Monthly<\/strong><strong>Investment<\/strong><strong>\u00a0<\/strong><strong>(P):<\/strong><strong>\u00a0<\/strong>\u20b95,000<\/li>\r\n<li><strong>Total<\/strong><strong>Years<\/strong><strong>\u00a0<\/strong><strong>(t):<\/strong><strong>\u00a0<\/strong>20<\/li>\r\n<li><strong>Annual<\/strong><strong>Rate<\/strong><strong>\u00a0<\/strong><strong>(r):<\/strong><strong>\u00a0<\/strong>10%\u00a0or\u00a010<\/li>\r\n<li><strong>Compounded<\/strong><strong>Monthly<\/strong><strong>\u00a0<\/strong><strong>(n<\/strong><strong>\u00a0<\/strong><strong>=<\/strong><strong>\u00a0<\/strong><strong>12)<\/strong><\/li>\r\n<\/ul>\r\n<p><strong>Step<\/strong><strong>\u00a0<\/strong><strong>1:<\/strong><strong>\u00a0<\/strong><strong>Substitute<\/strong><strong>\u00a0<\/strong><strong>values<\/strong><strong>\u00a0<\/strong><strong>into<\/strong><strong>\u00a0<\/strong><strong>the<\/strong><strong>\u00a0<\/strong><strong>formula<\/strong><\/p>\r\n<p>FV=5000\u00d7((1+0.10\/12)<sup>12\u00d720\u2212<\/sup>1\/0.10\/12)\u00d7(1+0.10\/12)<\/p>\r\n<p><strong>Step<\/strong><strong>\u00a0<\/strong><strong>2:<\/strong><strong>\u00a0<\/strong><strong>Solve<\/strong><strong>\u00a0<\/strong><strong>for<\/strong><strong>\u00a0<\/strong><strong>(1<\/strong><strong>\u00a0<\/strong><strong>+<\/strong><strong>\u00a0<\/strong><strong>r\/n)<\/strong><\/p>\r\n<p>1+0.10\/12=1.0083333<\/p>\r\n<p><strong>Step<\/strong><strong>\u00a0<\/strong><strong>3:<\/strong><strong>\u00a0<\/strong><strong>Calculate<\/strong><strong>\u00a0<\/strong><strong>the<\/strong><strong>\u00a0<\/strong><strong>exponent<\/strong><strong>\u00a0<\/strong><strong>12\u00d720<\/strong><\/p>\r\n<p>(1.0083333)<sup>240<\/sup><\/p>\r\n<p>Using\u00a0exponentiation: (1.0083333)<sup>240<\/sup>\u00a0\u22487.39<\/p>\r\n<p><strong>Step<\/strong><strong>\u00a0<\/strong><strong>4:<\/strong><strong>\u00a0<\/strong><strong>Solve<\/strong><strong>\u00a0<\/strong><strong>the<\/strong><strong>\u00a0<\/strong><strong>fraction<\/strong><strong>\u00a0<\/strong><strong>inside<\/strong><strong>\u00a0<\/strong><strong>the<\/strong><strong>\u00a0<\/strong><strong>brackets<\/strong><\/p>\r\n<p>(7.39\u22121)\/0.0083333<\/p>\r\n<p>=6.39\/0.0083333<\/p>\r\n<p>=767.88<\/p>\r\n<p><strong>Step<\/strong><strong>\u00a0<\/strong><strong>5:<\/strong><strong>\u00a0<\/strong><strong>Multiply<\/strong><strong>\u00a0<\/strong><strong>by<\/strong><strong>\u00a0<\/strong><strong>(1<\/strong><strong>\u00a0<\/strong><strong>+<\/strong><strong>\u00a0<\/strong><strong>r\/n)<\/strong><\/p>\r\n<p>(1+0.0083333)=1.0083333<\/p>\r\n<p>767.88\u00d71.0083333=774.28<\/p>\r\n<p><strong>Step<\/strong><strong>\u00a0<\/strong><strong>6:<\/strong><strong>\u00a0<\/strong><strong>Multiply<\/strong><strong>\u00a0<\/strong><strong>by<\/strong><strong>\u00a0<\/strong><strong>the<\/strong><strong>\u00a0<\/strong><strong>monthly<\/strong><strong>\u00a0<\/strong><strong>investment<\/strong><\/p>\r\n<p>FV=5000\u00d7774.28<\/p>\r\n<p>FV=\u20b938.71\u00a0lakhs<\/p>\r\n<h4><strong>Compounding<\/strong><strong>\u00a0<\/strong><strong>Table<\/strong><strong>\u00a0<\/strong><strong>Showing<\/strong><strong>\u00a0<\/strong><strong>Nirav\u2019s<\/strong><strong>\u00a0<\/strong><strong>Investment<\/strong><strong>\u00a0<\/strong><strong>Growth-<\/strong><\/h4>\r\n<p><strong>AGE-\u00a035<\/strong><\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td width=\"57\">\r\n<p><strong>Age<\/strong><\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p><strong>Total<\/strong> <strong>Invested <\/strong><strong>(\u20b9)<\/strong><\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p><strong>Future<\/strong><strong>\u00a0<\/strong><strong>Value<\/strong><strong>\u00a0<\/strong><strong>(\u20b9)<\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>35<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b960,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b962,811<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>36<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b91,20,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b91,31,828<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>37<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b91,80,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b92,06,183<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>38<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b92,40,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b92,86,224<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>39<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b93,00,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b93,72,320<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>40<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b93,60,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b94,64,866<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>41<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b94,20,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b95,64,288<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>42<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b94,80,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b96,71,051<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>43<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b95,40,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b97,85,659<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>44<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b96,00,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b99,08,648<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>45<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b96,60,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b910,40,593<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>46<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b97,20,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b911,82,105<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>47<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b97,80,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b913,33,832<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>48<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b98,40,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b914,96,472<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>49<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b99,00,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b916,70,773<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>50<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b99,60,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b918,57,531<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>51<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b910,20,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b920,57,602<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>52<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b910,80,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b922,71,896<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>53<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b911,40,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b925,01,377<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>54<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b912,00,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p>\u20b927,47,069<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"57\">\r\n<p>55<\/p>\r\n<\/td>\r\n<td width=\"227\">\r\n<p>\u20b912,60,000<\/p>\r\n<\/td>\r\n<td width=\"773\">\r\n<p><strong>\u20b938,71,062<\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p><strong>Nirav\u2019s<\/strong><strong>\u00a0<\/strong><strong>investment<\/strong><strong>\u00a0<\/strong><strong>grows<\/strong><strong>\u00a0<\/strong><strong>to<\/strong><strong>\u00a0<\/strong><strong>\u20b938.71<\/strong><strong>\u00a0<\/strong><strong>lakhs<\/strong><strong>\u00a0<\/strong><strong>at<\/strong><strong>\u00a0<\/strong><strong>age<\/strong><strong>\u00a0<\/strong><strong>55. What did you Learn?<\/strong><\/p>\r\n<p>Just observe the difference. Vedant started 10 years earlier with just \u20b96 lakhs more in contributions, yet his final corpus is more than double than Nirav. This is the magic of starting early and letting compounding do its work.<\/p>\r\n<p>Now\u00a0that\u00a0we&#8217;ve\u00a0seen\u00a0the\u00a0incredible\u00a0advantage\u00a0of\u00a0starting\u00a0early,\u00a0it\u00a0becomes\u00a0equally important to understand the cost of not investing. Delays and inaction come with\u00a0a silent price tag, lost growth, diminished purchasing power, and compromised financial security. Read further to understand how deeply missed investment opportunities can affect your future.<\/p>\r\n<p>&nbsp;<\/p><\/div>\n<div id='text_slider_slide04' class='sa_hover_container' data-hash='Impact-of-not-investing' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h2 style=\"text-align: left\"><span style=\"color: #000000\"><strong>1.4 Impact of Not Investing<\/strong><\/span><\/h2>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-74637 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Impact-of-Not-Investing.png\" alt=\"Impact of Not Investing\" width=\"993\" height=\"785\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Impact-of-Not-Investing.png 993w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Impact-of-Not-Investing-300x237.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Impact-of-Not-Investing-768x607.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Impact-of-Not-Investing-50x40.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Impact-of-Not-Investing-100x79.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Impact-of-Not-Investing-150x119.png 150w\" sizes=\"(max-width: 993px) 100vw, 993px\" \/><\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>Not investing can have long-term consequences that affect financial growth, stability, and future opportunities. Many people assume saving money is enough, but inflation, wealth accumulation, and economic security require active investment strategies.<\/p>\r\n<ol>\r\n<li><b><\/b>\r\n<h4><strong>Loss <\/strong><strong>of<\/strong><strong>\u00a0<\/strong><strong>Purchasing<\/strong><strong>\u00a0<\/strong><strong>Power<\/strong><strong>\u00a0<\/strong><strong>Due<\/strong><strong>\u00a0<\/strong><strong>to<\/strong><strong>\u00a0<\/strong><strong>Inflation<\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>While saving is important, inflation steadily erodes the purchasing power of idle cash. For instance, keeping \u20b91,00,000 in a savings account earning 3% interest while inflation runs at 6% results in a net loss in real value. Over time, this gap widens, reducing financial stability and future opportunities. Active investment strategies are essential to grow wealth, preserve value, and secure long-term economic well-being.<\/p>\r\n<ol start=\"2\">\r\n<li><b><\/b>\r\n<h4><strong>Limited <\/strong><strong>Wealth<\/strong><strong>\u00a0<\/strong><strong>Creation<\/strong><strong>\u00a0<\/strong><strong>and<\/strong><strong>\u00a0<\/strong><strong>Missed<\/strong><strong>\u00a0<\/strong><strong>Opportunities<\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Investing is a powerful tool for building wealth through compound growth, passive income, and asset appreciation. Without it, financial progress remains slow and limited. Consider the example of Nirav and Vedant: both save \u20b95,000 per month, but Vedant invests his savings at a 10% annual return, while Nirav keeps his money in\u00a0a regular savings\u00a0account.\u00a0After 30 years, Vedant accumulates over \u20b91.13 crore, whereas Nirav ends up with just \u20b938 lakhs. This stark contrast highlights how investing significantly accelerates wealth creation compared to mere saving.<\/p>\r\n<ol start=\"3\">\r\n<li><b><\/b>\r\n<h4><strong>Financial <\/strong><strong>Insecurity<\/strong><strong>\u00a0<\/strong><strong>in<\/strong><strong>\u00a0<\/strong><strong>Retirement<\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Relying solely on savings without investing can pose serious financial challenges during retirement, as non-invested funds gradually diminish and fail to keep pace with inflation. In contrast, passive income from investments like mutual funds, stocks, or bonds offers long-term financial stability and helps maintain purchasing power. For instance, a person who invests consistently throughout their working years can retire with a secure\u00a0income\u00a0stream,\u00a0while someone\u00a0who\u00a0avoids\u00a0investing may face retirement with limited financial resources and increased vulnerability.<\/p>\r\n<ol start=\"4\">\r\n<li><b><\/b>\r\n<h4><strong>Reduced <\/strong><strong>Ability<\/strong><strong>\u00a0<\/strong><strong>to<\/strong><strong>\u00a0<\/strong><strong>Meet<\/strong><strong>\u00a0<\/strong><strong>Life<\/strong><strong>\u00a0<\/strong><strong>Goals<\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Investments play a key role in achieving life milestones such as home ownership, education funding, or travel. Without investments, individuals may need to rely on loans or delay important financial goals. Investing in equity funds or real estate early can help a person afford a home more comfortably, compared to someone relying solely on accumulated savings.<\/p>\r\n<ol start=\"5\">\r\n<li><b><\/b>\r\n<h4><strong>No <\/strong><strong>Passive<\/strong><strong>\u00a0<\/strong><strong>Income<\/strong><strong>\u00a0<\/strong><strong>and<\/strong><strong>\u00a0<\/strong><strong>Dependence<\/strong><strong>\u00a0<\/strong><strong>on<\/strong><strong>\u00a0<\/strong><strong>Salary<\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Without investments, individuals depend entirely on active income such as salary or wages. Investing in dividend stocks, rental properties, or interest-bearing assets creates passive income streams, reducing financial dependency. Someone who invests in dividend-paying stocks builds an additional income source, while those who don&#8217;t invest must always rely on their primary job. Once we realize the true cost of\u00a0inaction, the next natural step\u00a0is\u00a0to prepare wisely before taking the plunge. Successful investing is more than enthusiasm\u2014it\u2019s built on informed choices, strong strategies, and discipline. Before you commit your capital, it&#8217;s essential to understand a few critical aspects that can shape your investment outcome<\/p><\/div>\n<div id='text_slider_slide05' class='sa_hover_container' data-hash='Things-to-know-before-investing' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h2 style=\"text-align: left\"><span style=\"color: #000000\"><strong>1.5 Things to know before investing<\/strong><\/span><\/h2>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-47118 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Care-One-should-take-before-investing.png\" alt=\"Care One should take before investing\" width=\"954\" height=\"1018\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Care-One-should-take-before-investing.png 954w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Care-One-should-take-before-investing-281x300.png 281w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Care-One-should-take-before-investing-768x820.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Care-One-should-take-before-investing-47x50.png 47w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Care-One-should-take-before-investing-94x100.png 94w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Care-One-should-take-before-investing-150x160.png 150w\" sizes=\"(max-width: 954px) 100vw, 954px\" \/><\/p>\r\n<p>Trading is like playing a fast-paced sport such as competitive tennis, you need skill, strategy, mental sharpness, and the ability to make split-second decisions based on your opponent\u2019s moves. In the same way, traders must read market signals, manage risks, and adjust positions quickly as prices change. In contrast, long-term investing resembles planting a tree: you select the right seed, nurture it, and allow time to foster steady growth. While trading demands constant vigilance and emotional resilience, investing focuses on patience and consistency. Before entering the financial markets as a trader, it&#8217;s essential to understand market behavior, develop strong risk management skills, and prepare mentally for the emotional ups and downs, this foundation is key to making strategic decisions rather than costly mistakes.<\/p>\r\n<ol>\r\n<li>\r\n<h4><strong><b> Understanding Market Structure and Asset Classes<\/b><\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>When\u00a0you step into the world of trading, you&#8217;re not just clicking buttons, you\u2019re operating in a marketplace that has its own structure, its own rules, and a whole mix of asset classes. Think stocks, commodities like gold and oil, currencies, and more complex instruments like derivatives. Each of these has a distinct personality and risk profile.\u00a0Lets understand each of them.<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Equities (Stocks)<\/b><\/strong>offer opportunities for both short-term gains and long-term appreciation, but they are susceptible to volatility influenced by corporate earnings, macroeconomic policies, and global events.<\/li>\r\n<li><b><\/b><strong><b>Commodities (Gold, Oil, Agricultural Products)<\/b><\/strong>fluctuate based on supply and demand, geopolitical stability, and economic cycles.<\/li>\r\n<li><b><\/b><strong><b>Foreign Exchange (Forex)<\/b><\/strong>trading involves currency pairs and is heavily impacted by interest rate decisions, inflation, and international trade policies.<\/li>\r\n<li><b><\/b><strong><b>Derivatives (Options and Futures)<\/b><\/strong>provide leverage and hedging opportunities but require advanced strategies to manage risks effectively.<\/li>\r\n<\/ul>\r\n<ol start=\"2\">\r\n<li><b><\/b>\r\n<h4><strong><b>Technical vs. Fundamental Analysis<\/b><\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>There are two ways to read the market. One is technical analysis\u00a0like checking the heartbeat of a stock through its past movements and chart patterns. The other is fundamental analysis\u00a0diving into earnings, policies, and economic indicators to understand what\u2019s truly driving prices. Think of technical as short-term signals and fundamental as long-term insights.<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Technical analysis<\/b><\/strong>focuses on historical price movements, chart patterns, and market trends. Traders use indicators such as moving averages, relative strength index (RSI), and Bollinger Bands to identify entry and exit points.\u00a0For better understanding of Technical analysis click on the link \u00a0. Here you will get a detailed analysis all chart patterns and how indicators help traders to decide their entry and exit points<\/li>\r\n<li><b><\/b><strong><b>Fundamental analysis<\/b><\/strong>examines financial reports, economic indicators, and company performance. Earnings reports, interest rate decisions, and macroeconomic trends play a crucial role in shaping market sentiment.<\/li>\r\n<\/ul>\r\n<ol start=\"3\">\r\n<li><b><\/b>\r\n<h4><strong><b>Risk Management and Capital Protection<\/b><\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Smart trading is like driving with a seatbelt and brakes. Without tools like stop losses or proper position sizing, a single bad move can wreck your capital. Knowing when to cut losses, when to take profit, and how much to risk per trade\u00a0that&#8217;s how pros stay in the game.<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Position Sizing:<\/b><\/strong>Limiting exposure per trade prevents overcommitment and balances portfolio risks.<\/li>\r\n<li><b><\/b><strong><b>Stop Loss and Take Profit Orders:<\/b><\/strong>Setting predefined exit points ensures traders minimize losses while securing profits.<\/li>\r\n<li><b><\/b><strong><b>Risk-Reward Ratio:<\/b><\/strong>A well-planned trade should offer a favorable risk-to-reward ratio to justify the investment.<\/li>\r\n<li><b><\/b><strong><b>Leverage Control:<\/b><\/strong>While leverage enhances profits, excessive use can magnify losses significantly.<\/li>\r\n<\/ul>\r\n<ol start=\"4\">\r\n<li><b><\/b>\r\n<h4><strong><b>Market Psychology and Emotional Discipline<\/b><\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Trading isn\u2019t just about numbers\u2014it\u2019s about your mindset. Fear makes you panic-sell, greed pushes you to over\u00a0trade, and FOMO gets you into bad trades. A clear head and a disciplined plan make all the difference. Emotion-led trading is a shortcut to regret.<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Fear of missing out (FOMO)<\/b><\/strong>leads traders to chase trends, increasing the risk of buying at peak prices.<\/li>\r\n<li><b><\/b><strong><b>Overtrading<\/b><\/strong>arises from excessive confidence, resulting in poor decision-making and unnecessary losses.<\/li>\r\n<li><b><\/b><strong><b>Panic selling<\/b><\/strong>during market downturns can lead traders to exit profitable positions too early.<\/li>\r\n<\/ul>\r\n<p>Developing emotional discipline through structured strategies and rational decision-making enhances trading efficiency. A well-defined plan prevents traders from reacting impulsively to market fluctuations.<\/p>\r\n<ol start=\"5\">\r\n<li><b><\/b>\r\n<h4><strong><b>Importance of Liquidity and Market Timing<\/b><\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Suppose You are\u00a0trying to sell an expensive piece of art vs. selling a popular phone, it\u2019s way easier to find a buyer for the latter. That\u2019s liquidity. Trade in highly liquid markets like major stocks and forex for easier entries and exits. Also, timing matters\u00a0news releases and opening bells often bring price swings.<\/p>\r\n<ul>\r\n<li>High liquidity assets, like major stocks and currency pairs, allow smooth transactions with minimal price slippage.<\/li>\r\n<li>Non liquid assets can experience extreme price fluctuations due to fewer buyers and sellers, increasing risks.<\/li>\r\n<\/ul>\r\n<p>Additionally, market timing plays a crucial role in trading profitability. Some strategies work best during high volatility sessions, such as the opening and closing hours of stock markets. Understanding the impact of news releases and earnings reports can prevent unnecessary exposure to sharp price movements.<\/p>\r\n<ol start=\"6\">\r\n<li><b><\/b>\r\n<h4><strong><b>Trading Strategies and Choosing the Right Approach<\/b><\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Different strategies fit different personalities. Are you someone who thrives on action? You might like day trading. Prefer a more relaxed pace? Swing trading could be for you. Scalping is ultra-fast and intense. And if you\u2019re tech-savvy, algo trading lets you automate everything. Match your strategy to your style and risk comfort.<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Day Trading:<\/b><\/strong>Short-term trading where positions are closed within the same day. Requires quick decision-making and constant monitoring of charts.<\/li>\r\n<li><b><\/b><strong><b>Swing Trading:<\/b><\/strong>Holding assets for multiple days or weeks to capture short- to mid-term trends. Suitable for traders who prefer moderate risk exposure.<\/li>\r\n<li><b><\/b><strong><b>Scalping:<\/b><\/strong>Extremely short-term trading where positions are opened and closed within minutes. Designed for capturing small price movements with high frequency.<\/li>\r\n<li><b><\/b><strong><b>Algorithmic Trading:<\/b><\/strong>Automated trading using mathematical models and pre-defined conditions. Requires expertise in coding and market analysis.<\/li>\r\n<\/ul>\r\n<p>Selecting the right strategy depends on a trader\u2019s risk tolerance, time commitment, and expertise level.<\/p>\r\n<ol start=\"7\">\r\n<li><b><\/b>\r\n<h4><strong><b>Transaction Costs, Taxes, and Regulations<\/b><\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Every trade has hidden costs\u2014brokerage fees, taxes, and compliance rules. Neglect these and your profits may shrink fast. Staying informed and organized helps you keep more of what you earn and avoid unwanted surprises.<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Brokerage Fees:<\/b><\/strong>Frequent traders should account for commission costs, spreads, and exchange fees.<\/li>\r\n<li><b><\/b><strong><b>Taxes on Capital Gains:<\/b><\/strong>Depending on the country\u2019s tax policies, short-term trading profits may be subject to taxation.<\/li>\r\n<li><b><\/b><strong><b>Regulatory Compliance:<\/b><\/strong>Traders must be aware of legal requirements set by financial authorities to prevent fraud or penalties.<\/li>\r\n<\/ul>\r\n<p>Understanding financial obligations helps traders optimize their net profits while staying compliant with market regulations.<\/p>\r\n<ol start=\"8\">\r\n<li><b><\/b>\r\n<h4><strong><b>Continuous Learning and Adapting to Market Conditions<\/b><\/strong><\/h4>\r\n<\/li>\r\n<\/ol>\r\n<p>Markets evolve like fast-moving technology. What worked yesterday might flop tomorrow. Stay sharp by reading, testing strategies, and learning from others. It\u2019s not a one-time setup\u2014it\u2019s a journey of growth and adaptation.<\/p>\r\n<ul>\r\n<li>Reading financial reports, economic forecasts, and regulatory changes enhances decision-making.<\/li>\r\n<li>Back-testing strategies using historical data verifies performance before implementing them in live markets.<\/li>\r\n<li>Learning from experienced traders through mentorship, courses, or trading communities accelerates progress.<\/li>\r\n<\/ul>\r\n<p>Here are some investment instruments \u00a0and\u00a0diverse tools available to shape your wealth-building journey.<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p><\/div>\n<div id='text_slider_slide06' class='sa_hover_container' data-hash='Types-Of-Investment-Instruments' style='padding:4.9% 5%; margin:0px 0%; min-height:400px; '><h2 style=\"text-align: left\"><strong>1.6 Types Of Investment Instruments<\/strong><\/h2>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-47119 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Types-of-Investment-Instruments.png\" alt=\"Types of Investment Instruments\" width=\"1008\" height=\"968\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Types-of-Investment-Instruments.png 1008w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Types-of-Investment-Instruments-300x288.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Types-of-Investment-Instruments-768x738.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Types-of-Investment-Instruments-50x48.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Types-of-Investment-Instruments-100x96.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Types-of-Investment-Instruments-150x144.png 150w\" sizes=\"(max-width: 1008px) 100vw, 1008px\" \/><\/p>\r\n<p>&nbsp;<\/p>\r\n<p>Investment instruments are financial assets used to grow wealth, generate income, or hedge risks. Each instrument serves different financial objectives, and selecting the right ones depends on an investor&#8217;s risk tolerance, time horizon, and market knowledge.<\/p>\r\n<p>By now we all are aware that investment is done in instruments other than your normal savings bank account. As mentioned earlier investment instruments are financial assets such as equities, fixed income securities , Mutual Funds and ETFs , Commodities and Precious Metals, Derivatives etc.<\/p>\r\n<p><strong><b>Lets understand \u00a0them in detail<\/b><\/strong><\/p>\r\n<h3><strong><b>Equities<\/b><\/strong><\/h3>\r\n<p>Equity investments involve buying shares of a company, making investors partial owners with a claim on its assets and earnings. These investments offer potential returns through capital appreciation, when share prices rise, and dividends, which are portions of profits shared with shareholders. However, they carry market risk, as share values fluctuate based on factors like economic conditions, company performance, and investor sentiment. For instance, purchasing 100 shares at \u20b9100 totals \u20b910,000; if the price rises to \u20b9150, the value becomes \u20b915,000, a 50% gain. But if it drops to \u20b980, the value falls to \u20b98,000, showing the risk involved. Equity value typically grows when a company performs well, but poor results can lead to losses.<\/p>\r\n<p>There are two types of equity investments<\/p>\r\n<ol>\r\n<li><b><\/b><strong><b>Common Stocks<\/b><\/strong><\/li>\r\n<\/ol>\r\n<p>Common stocks are the most prevalent form of equity investment, granting shareholders voting rights in company decisions, such as electing board members. Investors primarily earn returns through:<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Capital Appreciation:<\/b><\/strong>If a company grows, its stock price increases, allowing investors to sell shares at a higher price than they bought them for.<\/li>\r\n<li><b><\/b><strong><b>Dividends:<\/b><\/strong>Some companies distribute a portion of their profits to shareholders as dividends, providing additional income.<\/li>\r\n<\/ul>\r\n<p>Example: Infosys pays dividends to shareholders, alongside long-term stock price appreciation, making it attractive to both growth and income investors.<\/p>\r\n<ol start=\"2\">\r\n<li><strong><b> Preferred Stocks<\/b><\/strong><\/li>\r\n<\/ol>\r\n<p>Preferred stocks differ from common stocks because they provide fixed dividends, meaning investors receive guaranteed periodic payouts regardless of company profits.<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Stable Income:<\/b><\/strong>Preferred stockholders receive dividends before common shareholders.<\/li>\r\n<li><b><\/b><strong><b>Limited Voting Rights:<\/b><\/strong>Unlike common stocks, preferred stocks often do not\u00a0grant shareholders voting power in company decisions.<\/li>\r\n<li><b><\/b><strong><b>Priority in Bankruptcy:<\/b><\/strong>If a company faces financial trouble, preferred shareholders are paid before common stockholders.<\/li>\r\n<\/ul>\r\n<p><strong><b>Example: <\/b><\/strong>Certain banks and financial institutions issue preferred shares with fixed dividends, making them ideal for conservative investors seeking stable returns rather than high growth potential.<\/p>\r\n<h3><strong><b>Fixed Income Securities<\/b><\/strong><\/h3>\r\n<p>Fixed income securities are investments that offer regular interest payments and return the principal at maturity, providing stability and predictability, much like Nirav lending money to his cousin and receiving \u20b9500 monthly until the full amount is repaid. Instead of lending to family, investors lend to governments, corporations, or municipalities, earning consistent interest with lower volatility than equities. Government bonds like Treasury Bills and RBI Bonds are low-risk due to sovereign backing, while corporate bonds offer higher returns but come with credit risk. Municipal bonds help fund public infrastructure, and zero-coupon bonds, sold at a discount,pay no periodic interest but are redeemed at full value. These instruments are ideal for conservative investors, retirees, or anyone seeking reliable income and capital preservation, making them a key component of a diversified portfolio.<\/p>\r\n<h3><strong><b>Mutual Funds and ETFs<\/b><\/strong><\/h3>\r\n<p>Mutual funds are like Nirav and his neighbors planning a festive meal, everyone contributes money, and Vedant, the skilled cook (fund manager), selects the best ingredients for a balanced feast of stocks, bonds, and commodities. ETFs are like Nirav\u2019s cousin Arjun picking a ready-made combo meal anytime,offering similar diversification but with more flexibility. Mutual funds offer equity for growth, debt for stability, and hybrid for balance, while index funds track benchmarks like Nifty 50. ETFs trade on stock exchanges, providing liquidity, transparency, and lower costs. Both simplify investing through professional management, ideal for beginners and seasoned investors alike.\u00a0<\/p>\r\n<h3><strong><b>Commodities and Precious Metals<\/b><\/strong><\/h3>\r\n<p>Commodity investing is like splitting costs for a weekend trip\u2014each person covers a different expense to make the whole plan work. Similarly, investors allocate money across essentials like oil, wheat, and gold to balance risk and protect against inflation and market volatility. Commodities include physical assets such as metals, energy products, and agricultural goods, all vital to global trade. Precious metals like gold and silver act as safe havens during economic uncertainty, while energy commodities such as crude oil and natural gas respond to geopolitical and supply-demand shifts. Agricultural commodities like wheat and coffee are shaped by climate and consumption trends. Though commodity trading requires expertise due to price volatility, it offers valuable diversification and inflation protection, making it a strategic choice for institutional and seasoned investors.<\/p>\r\n<h3><strong><b>Derivatives (Futures and Options)<\/b><\/strong><\/h3>\r\n<p>Derivatives are financial instruments that derive value from underlying assets like stocks, commodities, or currencies, and help manage uncertainty\u2014much like everyday agreements. For example, locking in today\u2019s mango price for next month mirrors a futures contract, while paying a small amount for the option to buy a concert ticket later reflects an options contract, offering flexibility without obligation. Swaps involve exchanging financial terms, like two friends swapping loan types to balance risk, and forwards resemble a caf\u00e9 owner fixing cocoa prices in advance to avoid future cost spikes. These tools\u2014futures, options, swaps, and forwards\u2014are used for hedging or speculation, often by experienced traders due to their complexity and leverage. As part of a broader investment toolkit that includes equities, bonds, mutual funds, and commodities, derivatives allow investors to tailor portfolios to their goals, risk appetite, and time horizon. Yet, the deeper financial question remains: should you save or invest? Understanding both approaches is key to securing your financial future.<\/p>\r\n<p>&nbsp;<\/p><\/div>\n<div id='text_slider_slide07' class='sa_hover_container' data-hash='Savings-v\/s-Investment' style='padding:4.9% 5%; margin:0px 0%; min-height:400px; '><h2 style=\"text-align: left\"><strong>1.7 Saving Or Investment &#8211; The Better Option<\/strong><\/h2>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-47120 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Savings-Or-Investment.png\" alt=\"Savings Or Investment\" width=\"997\" height=\"915\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Savings-Or-Investment.png 997w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Savings-Or-Investment-300x275.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Savings-Or-Investment-768x705.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Savings-Or-Investment-50x46.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Savings-Or-Investment-100x92.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/Savings-Or-Investment-150x138.png 150w\" sizes=\"(max-width: 997px) 100vw, 997px\" \/><\/p>\r\n<p>&nbsp;<\/p>\r\n<p>From example of Nirav and Vedant now we do know that Investing is always a better option rather than just saving and also the\u00a0debate between saving and investing is central to financial planning. While both have unique benefits, their impact on wealth creation differs significantly. Traders and investors recognize that simply saving money may not be enough to build financial security\u2014investment is necessary for long-term wealth accumulation.<\/p>\r\n<p><strong><b>Understanding the Core Difference<\/b><\/strong><\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p><strong><b>Aspect<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>Saving<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>Investing<\/b><\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Purpose<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>Security, emergency funds<\/p>\r\n<\/td>\r\n<td>\r\n<p>Wealth creation, long-term growth<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Risk Level<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>Low<\/p>\r\n<\/td>\r\n<td>\r\n<p>Medium to high, depending on assets<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Returns<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>Minimal, often below inflation rate<\/p>\r\n<\/td>\r\n<td>\r\n<p>Potential for higher returns, especially in equities<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Liquidity<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>High\u2014money is readily available<\/p>\r\n<\/td>\r\n<td>\r\n<p>Variable\u2014some investments have lock-in periods<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Time Horizon<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>Short-term focus<\/p>\r\n<\/td>\r\n<td>\r\n<p>Long-term wealth-building strategy<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<h3><strong><b>The Impact of Inflation on Savings vs. Investments<\/b><\/strong><\/h3>\r\n<p>One of the biggest risks with relying solely on savings is inflation. If inflation averages 6% per year, a savings account earning 3% interest is losing purchasing power annually. Investing combats inflation by offering higher returns over time.<\/p>\r\n<p><strong><b>Example: \u20b91 Lakh Growth in Savings vs. Investment Over 20 Years<\/b><\/strong><\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td width=\"59\">\r\n<p><strong><b>Year<\/b><\/strong><\/p>\r\n<\/td>\r\n<td width=\"459\">\r\n<p><strong><b>\u20b91 Lakh in Savings (3% Annual Interest)<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>\u20b91 Lakh in Investments (10% Annual Return)<\/b><\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"59\">\r\n<p>1<\/p>\r\n<\/td>\r\n<td width=\"459\">\r\n<p>\u20b91,03,000<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b91,10,000<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"59\">\r\n<p>5<\/p>\r\n<\/td>\r\n<td width=\"459\">\r\n<p>\u20b91,15,927<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b91,61,051<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"59\">\r\n<p>10<\/p>\r\n<\/td>\r\n<td width=\"459\">\r\n<p>\u20b91,34,391<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b92,59,374<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"59\">\r\n<p>15<\/p>\r\n<\/td>\r\n<td width=\"459\">\r\n<p>\u20b91,55,797<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b94,17,724<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"59\">\r\n<p>20<\/p>\r\n<\/td>\r\n<td width=\"459\">\r\n<p>\u20b91,80,611<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b96,72,750<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p><strong><b>Risk vs. Reward:<\/b><\/strong><\/p>\r\n<p>Traders and investors must balance risk and reward. While savings provide immediate liquidity, investments grow wealth through stocks, bonds, mutual funds, commodities, and real estate.<\/p>\r\n<h3><strong><b>Risk Hierarchy of Investment Instruments:<\/b><\/strong><\/h3>\r\n<ul>\r\n<li><b><\/b><strong><b>Low Risk:<\/b><\/strong>Fixed Deposits, Government Bonds, PPF<\/li>\r\n<li><b><\/b><strong><b>Moderate Risk:<\/b><\/strong>Mutual Funds, REITs, Corporate Bonds<\/li>\r\n<li><b><\/b><strong><b>High Risk:<\/b><\/strong>Equities, Derivatives, Cryptocurrencies<\/li>\r\n<\/ul>\r\n<p><strong><b>The Power of Compounding in Investment<\/b><\/strong><\/p>\r\n<p>Example: \u20b95,000 Monthly Investment vs. \u20b95,000 Monthly Savings Over 30 Years<\/p>\r\n<p>Investment Growth (Assuming 10% Annual Return):<\/p>\r\n<p><strong><b>FV=P\u00d7((1+r\/n)<\/b><\/strong><strong><sup><b>nt<\/b><\/sup><\/strong><strong><b>\u22121)\/r\/n)\u00d7(1+r\/n)<\/b><\/strong><\/p>\r\n<p>Where:<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>P<\/b><\/strong>= \u20b95,000<\/li>\r\n<li><b><\/b><strong><b>r<\/b><\/strong>= 10%<\/li>\r\n<li><b><\/b><strong><b>n<\/b><\/strong>= 12 (compounded monthly)<\/li>\r\n<li><b><\/b><strong><b>t<\/b><\/strong>= 30 years<\/li>\r\n<\/ul>\r\n<p>Using the formula, investing \u20b95,000 per month would grow to \u20b91.13 crore, while simple savings at 3% interest would total only \u20b928 lakhs\u2014a difference of \u20b985 lakhs over 30 years.<\/p>\r\n<p>&nbsp;<\/p><\/div>\n<div id='text_slider_slide08' class='sa_hover_container' data-hash='How-Investing-Helps-for-Retirement-Planning' style='padding:4.9% 5%; margin:0px 0%; min-height:400px; '><h2 style=\"text-align: left\"><span style=\"color: #000000\"><strong>1.8 <\/strong><\/span><strong><b>How Investing Helps for Retirement Planning?<\/b><\/strong><\/h2>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-74638 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/How-Investing-Helps-for-Retirement-Planning.png\" alt=\"How Investing Helps for Retirement Planning\" width=\"941\" height=\"784\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/How-Investing-Helps-for-Retirement-Planning.png 941w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/How-Investing-Helps-for-Retirement-Planning-300x250.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/How-Investing-Helps-for-Retirement-Planning-768x640.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/How-Investing-Helps-for-Retirement-Planning-50x42.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/How-Investing-Helps-for-Retirement-Planning-100x83.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/How-Investing-Helps-for-Retirement-Planning-150x125.png 150w\" sizes=\"(max-width: 941px) 100vw, 941px\" \/><\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>Retirement planning is not just about saving\u2014it\u2019s about investing smartly\u00a0to ensure financial stability and a comfortable post-work life. Many individuals rely solely on savings accounts, but inflation, medical expenses, and a longer lifespan make investment-based retirement planning\u00a0a necessity.<\/p>\r\n<p><strong><b>Let us take an example for understanding the concept of Retirement Planning <\/b><\/strong><\/p>\r\n<p>Nirav\u00a0is a 30-year-old professional earning \u20b975,000 per month. He dreams of retiring at 60 with financial independence\u00a0and a monthly passive income of \u20b91 lakh to sustain his lifestyle. If he relies solely on savings, he risks inflation erosion, healthcare costs, and outliving his money. Investing strategically is the only way to secure his retirement.<\/p>\r\n<p><strong><b>Define Retirement Goals and Timeline<\/b><\/strong><\/p>\r\n<p>Nirav must first determine his target retirement age and estimate his monthly expenses during retirement. Questions to consider:<\/p>\r\n<ul>\r\n<li>When does he want to retire (e.g., 60 years old)?<\/li>\r\n<li>What lifestyle does he aim for\u2014basic expenses or luxury living?<\/li>\r\n<li>Does he plan to travel or invest in post-retirement ventures?<\/li>\r\n<\/ul>\r\n<h3><strong><b>Estimate Required Retirement Corpus<\/b><\/strong><\/h3>\r\n<p>Using the 4% withdrawal rule, Nirav\u00a0can estimate how much money he needs to retire comfortably. For example, if he wants \u20b91 lakh per month (\u20b912 lakh per year)\u00a0in retirement, his corpus should be:<\/p>\r\n<p>Corpus=Annual Expense\u00f74%<\/p>\r\n<p>Corpus= \u20b912,00,000\u00f70.04= \u20b93Crores<\/p>\r\n<p>Action Step:\u00a0Nirav\u00a0must build a \u20b93 Crore portfolio\u00a0by the time he retires to ensure financial stability.<\/p>\r\n<h3><strong><b>Power of Investing Over 30 Years<\/b><\/strong><\/h3>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p><strong><b>Investment Type<\/b><\/strong><\/p>\r\n<\/td>\r\n<td width=\"278\">\r\n<p><strong><b>Annual Return<\/b><\/strong><\/p>\r\n<\/td>\r\n<td width=\"581\">\r\n<p><strong><b>Value After 30 Years (Starting \u20b91 Lakh)<\/b><\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Savings Account<\/p>\r\n<\/td>\r\n<td width=\"278\">\r\n<p>3%<\/p>\r\n<\/td>\r\n<td width=\"581\">\r\n<p>\u20b92.42 Lakhs<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Fixed Deposit (FDs)<\/p>\r\n<\/td>\r\n<td width=\"278\">\r\n<p>6%<\/p>\r\n<\/td>\r\n<td width=\"581\">\r\n<p>\u20b95.74 Lakhs<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Mutual Funds<\/p>\r\n<\/td>\r\n<td width=\"278\">\r\n<p>10%<\/p>\r\n<\/td>\r\n<td width=\"581\">\r\n<p>\u20b917.45 Lakhs<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p>Equity Investment<\/p>\r\n<\/td>\r\n<td width=\"278\">\r\n<p>12%<\/p>\r\n<\/td>\r\n<td width=\"581\">\r\n<p>\u20b929.96 Lakhs<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p>&nbsp;<\/p>\r\n<h3><strong><b>Inflation and Its Impact on Retirement Savings<\/b><\/strong><\/h3>\r\n<p>With 6% average inflation, Nirav\u00a0realizes that today&#8217;s \u20b91 lakh monthly expense will cost \u20b95.74 lakhs in 30 years. Without investing, he may not afford basic necessities.<\/p>\r\n<h3><strong><b>Investment Options for Retirement Planning<\/b><\/strong><\/h3>\r\n<p>Nirav\u00a0builds a <strong><b>diversified portfolio<\/b><\/strong>\u00a0to balance growth and stability:<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Equity Mutual Funds &amp; Stocks: <\/b><\/strong>50% allocation for long-term appreciation.<\/li>\r\n<li><b><\/b><strong><b>Fixed Income (Bonds, FDs): <\/b><\/strong>20% for capital protection.<\/li>\r\n<li><b><\/b><strong><b>Pension Plans (NPS, EPF): <\/b><\/strong>20% for structured retirement savings.<\/li>\r\n<li><b><\/b><strong><b>Real Estate: <\/b><\/strong>10% rental properties to generate passive income.<\/li>\r\n<\/ul>\r\n<p>Diversification ensures high returns while reducing risk, securing Nirav&#8217;s financial stability post-retirement.<\/p>\r\n<h3><strong><b>How Compounding Strengthens Retirement Investments<\/b><\/strong><\/h3>\r\n<p>Nirav starts investing <strong><b>\u20b910,000 per month<\/b><\/strong>\u00a0in an equity mutual fund at 12% return.<\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p><strong><b>Age Started<\/b><\/strong><\/p>\r\n<\/td>\r\n<td width=\"303\">\r\n<p><strong><b>Total Invested<\/b><\/strong><\/p>\r\n<\/td>\r\n<td width=\"538\">\r\n<p><strong><b>Value at Retirement (12% return)<\/b><\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>30<\/b><\/strong><\/p>\r\n<\/td>\r\n<td width=\"303\">\r\n<p>\u20b936 Lakhs<\/p>\r\n<\/td>\r\n<td width=\"538\">\r\n<p>\u20b93.5 Crores<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>40<\/b><\/strong><\/p>\r\n<\/td>\r\n<td width=\"303\">\r\n<p>\u20b924 Lakhs<\/p>\r\n<\/td>\r\n<td width=\"538\">\r\n<p>\u20b91.1 Crores<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>50<\/b><\/strong><\/p>\r\n<\/td>\r\n<td width=\"303\">\r\n<p>\u20b912 Lakhs<\/p>\r\n<\/td>\r\n<td width=\"538\">\r\n<p>\u20b940 Lakhs<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<h3><strong><b>Withdrawal Strategy for <\/b><\/strong><strong><b>Nirav<\/b><\/strong><strong><b>\u2019s Retirement<\/b><\/strong><\/h3>\r\n<p>Nirav plans his retirement withdrawals wisely:<\/p>\r\n<ul>\r\n<li>The 4% Rule:Withdraw \u20b91.4 lakh per month\u00a0from his \u20b93.5 crore corpus to sustain expenses.<\/li>\r\n<li>Dividend Stocks &amp; Rental Income:\u00a0Passive earnings ensure financial security.<\/li>\r\n<\/ul>\r\n<h3><strong><b>Planning for Medical Expenses &amp; Emergencies<\/b><\/strong><\/h3>\r\n<p>Nirav invests in health insurance, long-term care policies, and emergency funds to safeguard against medical expenses without depleting his retirement savings. His disciplined approach ensures financial independence, stable passive income, and a retirement free from reliance on employment or savings alone, highlighting that investing isn\u2019t optional but essential for long-term security. Once you\u2019ve weighed saving versus investing and understood the power of compounding, the next step is to explore where investments grow, especially in India. To navigate opportunities wisely, it\u2019s vital to understand how the Indian stock market operates, who the key players are, and how various assets are traded.<\/p>\r\n<p>&nbsp;<\/p><\/div>\n<div id='text_slider_slide09' class='sa_hover_container' data-hash='How-does-Indian-Stock-Market-Function' style='padding:4.9% 5%; margin:0px 0%; min-height:400px; '><h2 style=\"text-align: left\"><strong>1.9 <\/strong><strong><b>How does Indian Stock Market Function?<\/b><\/strong><\/h2>\r\n<h2 style=\"text-align: left\"><strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-74639 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/How-does-Indian-Stock-Market-Function.png\" alt=\"How does Indian Stock Market Function\" width=\"885\" height=\"829\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/How-does-Indian-Stock-Market-Function.png 885w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/How-does-Indian-Stock-Market-Function-300x281.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/How-does-Indian-Stock-Market-Function-768x719.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/How-does-Indian-Stock-Market-Function-50x47.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/How-does-Indian-Stock-Market-Function-100x94.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/How-does-Indian-Stock-Market-Function-150x141.png 150w\" sizes=\"(max-width: 885px) 100vw, 885px\" \/><\/strong><\/h2>\r\n<p>The Indian stock market operates as a platform where investors buy and sell securities, including stocks, bonds, derivatives, and mutual funds. It is regulated by the Securities and Exchange Board of India (SEBI) to ensure transparency, protect investors, and maintain market integrity. The two primary exchanges in India are the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).<\/p>\r\n<p><strong><b>Key Entities Involved<\/b><\/strong><\/p>\r\n<p>Several participants facilitate stock market operations:<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Stock Exchanges: <\/b><\/strong>NSE and BSE provide the infrastructure for trading.<\/li>\r\n<li><b><\/b><strong><b>SEBI (Regulator):<\/b><\/strong>Ensures fair practices and prevents fraud.<\/li>\r\n<li><b><\/b><strong><b>Companies (Issuers): <\/b><\/strong>List their shares for public trading via IPOs.<\/li>\r\n<li><b><\/b><strong><b>Brokers &amp; Traders: <\/b><\/strong>Intermediaries executing trades on behalf of investors.<\/li>\r\n<li><b><\/b><strong><b>Retail &amp; Institutional Investors: <\/b><\/strong>Individuals and large institutions participating in stock transactions.<\/li>\r\n<\/ul>\r\n<p><strong><b>Stock Trading Mechanism<\/b><\/strong><\/p>\r\n<p>The trading process in the Indian stock market follows a structured approach:<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Pre-Open Session (9:00 \u2013 9:15 AM): <\/b><\/strong>Allows price discovery before market opening.<\/li>\r\n<li><b><\/b><strong><b>Regular Trading Session (9:15 AM \u2013 3:30 PM): <\/b><\/strong>Continuous electronic trading of stocks.<\/li>\r\n<li><b><\/b><strong><b>Post-Closing Session (3:40 \u2013 4:00 PM): <\/b><\/strong>Determines the closing price for stocks.<\/li>\r\n<\/ul>\r\n<p>Shares are bought and sold through the order-matching system, ensuring liquidity and efficient transactions.<\/p>\r\n<p><strong><b>Investment Instruments Traded<\/b><\/strong><\/p>\r\n<p>Investors in India can trade various financial instruments, including:<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Equities (Stocks): <\/b><\/strong>Ownership in companies, with prices influenced by earnings, economic conditions, and market demand.<\/li>\r\n<li><b><\/b><strong><b>Derivatives (Futures &amp; Options): <\/b><\/strong>Contracts based on underlying stocks or indices, used for speculation or hedging risks.<\/li>\r\n<li><b><\/b><strong><b>Commodities: <\/b><\/strong>Gold, oil, agricultural products traded on the Multi Commodity Exchange (MCX).<\/li>\r\n<li><b><\/b><strong><b>Forex (Currency Trading): <\/b><\/strong>INR-based currency pairs traded in specialized markets.<\/li>\r\n<\/ul>\r\n<p><strong><b>Market Index &amp; Price Movements<\/b><\/strong><\/p>\r\n<p>Stock indices such as Sensex (BSE) and Nifty 50 (NSE) track the performance of top companies, reflecting market trends. Prices fluctuate based on:<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Company Performance: <\/b><\/strong>Earnings, revenue, management decisions.<\/li>\r\n<li><b><\/b><strong><b>Economic Policies: <\/b><\/strong>RBI interest rate decisions, inflation, GDP growth.<\/li>\r\n<li><b><\/b><strong><b>Global Events: <\/b><\/strong>International market trends, geopolitical developments.<\/li>\r\n<li><b><\/b><strong><b>Investor Sentiment: <\/b><\/strong>Market confidence, demand-supply dynamics.<\/li>\r\n<\/ul>\r\n<p><strong><b>Regulatory &amp; Risk Management<\/b><\/strong><\/p>\r\n<p>SEBI enforces strict corporate governance and financial reporting norms to protect investors. Additionally, risk management tools such as circuit breakers, margin requirements, and stop-loss mechanisms help prevent excessive market volatility.<\/p><\/div>\n<div id='text_slider_slide10' class='sa_hover_container' data-hash='Key-Takeaways' style='padding:4.9% 5%; margin:0px 0%; min-height:400px; '><h2 style=\"text-align: left\"><strong>1.10 Key Takeaways<\/strong><\/h2>\r\n<ul>\r\n<li>Investing is essential for long-term financial security, especially in an inflation-driven economy.<\/li>\r\n<li>Saving offers safety, but investing provides higher returns through compounding and market growth.<\/li>\r\n<li>Early investment multiplies wealth dramatically, as shown by the Nirav Vedantexample.<\/li>\r\n<li>Smart investing builds multiple income streams and creates financial independence.<\/li>\r\n<li>Risks like market, inflation, and liquidity can be managed through diversification and knowledge.<\/li>\r\n<li>Not investing leads to eroded savings, missed opportunities, and poor retirement readiness.<\/li>\r\n<li>Traders must understand asset classes, technical vs. fundamental analysis, and emotional discipline.<\/li>\r\n<li>There are various investment instruments including equities, mutual funds, bonds, and commodities.<\/li>\r\n<li>The Indian stock market operates under SEBI\u2019s regulation through NSE and BSE platforms.<\/li>\r\n<\/ul>\r\n<p>After building a strong foundation on the importance of investing, its timing, types of instruments, and the broader financial mindset required, it\u2019s time to zoom in on the actual building blocks of the investment ecosystem\u2014<strong><em><b><i>Securities<\/i><\/b><\/em><\/strong><strong><b>.<\/b><\/strong>\u00a0These financial instruments form the core of most investment strategies, whether you&#8217;re dabbling in stocks, bonds, or derivatives.<\/p><\/div>\n<\/div>\n<\/div>\n<script type='text\/javascript'>\n\tjQuery(document).ready(function() {\n\t\tjQuery('#text_slider').owlCarousel({\n\t\t\titems : 1,\n\t\t\tsmartSpeed : 400,\n\t\t\tautoplay : false,\n\t\t\tautoplayHoverPause : false,\n\t\t\tsmartSpeed : 400,\n\t\t\tfluidSpeed : 400,\n\t\t\tautoplaySpeed : 400,\n\t\t\tnavSpeed : 400,\n\t\t\tdotsSpeed : 400,\n\t\t\tdotsEach : 1,\n\t\t\tloop : false,\n\t\t\tnav : true,\n\t\t\tnavText : ['Previous','Next'],\n\t\t\tdots : true,\n\t\t\tresponsiveRefreshRate : 200,\n\t\t\tslideBy : 1,\n\t\t\tmergeFit : true,\n\t\t\tautoHeight : true,\n\t\t\tmouseDrag : false,\n\t\t\ttouchDrag : true\n\t\t});\n\t\tjQuery('#text_slider').css('visibility', 'visible');\n\t\tvar owl_goto = jQuery('#text_slider');\n\t\tjQuery('.text_slider_goto1').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 0);\n\t\t});\n\t\tjQuery('.text_slider_goto2').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 1);\n\t\t});\n\t\tjQuery('.text_slider_goto3').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 2);\n\t\t});\n\t\tjQuery('.text_slider_goto4').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 3);\n\t\t});\n\t\tjQuery('.text_slider_goto5').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 4);\n\t\t});\n\t\tjQuery('.text_slider_goto6').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 5);\n\t\t});\n\t\tjQuery('.text_slider_goto7').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 6);\n\t\t});\n\t\tjQuery('.text_slider_goto8').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 7);\n\t\t});\n\t\tjQuery('.text_slider_goto9').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 8);\n\t\t});\n\t\tjQuery('.text_slider_goto10').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 9);\n\t\t});\n\t\tvar resize_10265 = jQuery('.owl-carousel');\n\t\tresize_10265.on('initialized.owl.carousel', function(e) {\n\t\t\tif (typeof(Event) === 'function') {\n\t\t\t\twindow.dispatchEvent(new Event('resize'));\n\t\t\t} else {\n\t\t\t\tvar evt = window.document.createEvent('UIEvents');\n\t\t\t\tevt.initUIEvent('resize', true, false, window, 0);\n\t\t\t\twindow.dispatchEvent(evt);\n\t\t\t}\n\t\t});\n\t});\n<\/script>\n<\/p>                    <\/div>\n\t\t        \n                    <div id=\"slides-tab\" class=\"clearfix eael-tab-content-item \" data-title-link=\"slides-tab\">\n\t\t\t\t        <p><div class='white' style='background:rgba(0,0,0,0); border:solid 0px rgba(0,0,0,0); border-radius:0px; padding:0px 0px 0px 0px;'>\n<div id='slider_16843' class='owl-carousel sa_owl_theme owl-pagination-true autohide-arrows' data-slider-id='slider_16843' style='visibility: visible;visibility:visible;'>\n<div id='slider_16843_slide01' class='sa_hover_container' data-hash='' style='padding:5% 5%; margin:0px 0%; '><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-16790\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide1.png\" alt=\"\" width=\"1280\" height=\"720\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide1.png 1280w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide1-300x169.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide1-1024x576.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide1-768x432.png 768w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p><\/div>\n<div id='slider_16843_slide02' class='sa_hover_container' data-hash='' style='padding:5% 5%; margin:0px 0%; '><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-16792\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide2.png\" alt=\"\" width=\"1280\" height=\"720\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide2.png 1280w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide2-300x169.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide2-1024x576.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide2-768x432.png 768w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p><\/div>\n<div id='slider_16843_slide03' class='sa_hover_container' data-hash='' style='padding:5% 5%; margin:0px 0%; '><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-16794\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide3.png\" alt=\"\" width=\"1280\" height=\"720\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide3.png 1280w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide3-300x169.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide3-1024x576.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide3-768x432.png 768w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p><\/div>\n<div id='slider_16843_slide04' class='sa_hover_container' data-hash='' style='padding:5% 5%; margin:0px 0%; '><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-16796\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide4.png\" alt=\"\" width=\"1280\" height=\"720\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide4.png 1280w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide4-300x169.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide4-1024x576.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide4-768x432.png 768w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p><\/div>\n<div id='slider_16843_slide05' class='sa_hover_container' data-hash='' style='padding:5% 5%; margin:0px 0%; '><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-16798\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide5.png\" alt=\"\" width=\"1280\" height=\"720\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide5.png 1280w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide5-300x169.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide5-1024x576.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide5-768x432.png 768w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p><\/div>\n<div id='slider_16843_slide06' class='sa_hover_container' data-hash='' style='padding:5% 5%; margin:0px 0%; '><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-16800\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide6.png\" alt=\"\" width=\"1280\" height=\"720\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide6.png 1280w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide6-300x169.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide6-1024x576.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide6-768x432.png 768w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p><\/div>\n<div id='slider_16843_slide07' class='sa_hover_container' data-hash='' style='padding:5% 5%; margin:0px 0%; '><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-16802\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide7.png\" alt=\"\" width=\"1280\" height=\"720\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide7.png 1280w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide7-300x169.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide7-1024x576.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide7-768x432.png 768w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p><\/div>\n<div id='slider_16843_slide08' class='sa_hover_container' data-hash='' style='padding:5% 5%; margin:0px 0%; '><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-16804\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide8.png\" alt=\"\" width=\"1280\" height=\"720\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide8.png 1280w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide8-300x169.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide8-1024x576.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide8-768x432.png 768w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p><\/div>\n<div id='slider_16843_slide09' class='sa_hover_container' data-hash='' style='padding:5% 5%; margin:0px 0%; '><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-16806\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide9.png\" alt=\"\" width=\"1280\" height=\"720\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide9.png 1280w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide9-300x169.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide9-1024x576.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide9-768x432.png 768w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p><\/div>\n<div id='slider_16843_slide10' class='sa_hover_container' data-hash='' style='padding:5% 5%; margin:0px 0%; '><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-16808\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide10.png\" alt=\"\" width=\"1280\" height=\"720\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide10.png 1280w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide10-300x169.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide10-1024x576.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Slide10-768x432.png 768w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p><\/div>\n<div id='slider_16843_slide11' class='sa_hover_container' data-hash='' style='padding:5% 5%; margin:0px 0%; '><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-16810\" src=\"http:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Thank-You.png\" alt=\"\" width=\"1280\" height=\"720\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Thank-You.png 1280w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Thank-You-300x169.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Thank-You-1024x576.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Thank-You-768x432.png 768w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p><\/div>\n<\/div>\n<\/div>\n<script type='text\/javascript'>\n\tjQuery(document).ready(function() {\n\t\tjQuery('#slider_16843').owlCarousel({\n\t\t\titems : 1,\n\t\t\tsmartSpeed : 200,\n\t\t\tautoplay : false,\n\t\t\tautoplayHoverPause : false,\n\t\t\tsmartSpeed : 200,\n\t\t\tfluidSpeed : 200,\n\t\t\tautoplaySpeed : 200,\n\t\t\tnavSpeed : 200,\n\t\t\tdotsSpeed : 200,\n\t\t\tloop : true,\n\t\t\tnav : true,\n\t\t\tnavText : ['Previous','Next'],\n\t\t\tdots : true,\n\t\t\tresponsiveRefreshRate : 200,\n\t\t\tslideBy : 1,\n\t\t\tmergeFit : true,\n\t\t\tautoHeight : false,\n\t\t\tmouseDrag : false,\n\t\t\ttouchDrag : true\n\t\t});\n\t\tjQuery('#slider_16843').css('visibility', 'visible');\n\t\tsa_resize_slider_16843();\n\t\twindow.addEventListener('resize', sa_resize_slider_16843);\n\t\tfunction sa_resize_slider_16843() {\n\t\t\tvar min_height = '50';\n\t\t\tvar win_width = jQuery(window).width();\n\t\t\tvar slider_width = jQuery('#slider_16843').width();\n\t\t\tif (win_width < 480) {\n\t\t\t\tvar slide_width = slider_width \/ 1;\n\t\t\t} else if (win_width < 768) {\n\t\t\t\tvar slide_width = slider_width \/ 1;\n\t\t\t} else if (win_width < 980) {\n\t\t\t\tvar slide_width = slider_width \/ 1;\n\t\t\t} else if (win_width < 1200) {\n\t\t\t\tvar slide_width = slider_width \/ 1;\n\t\t\t} else if (win_width < 1500) {\n\t\t\t\tvar slide_width = slider_width \/ 1;\n\t\t\t} else {\n\t\t\t\tvar slide_width = slider_width \/ 1;\n\t\t\t}\n\t\t\tslide_width = Math.round(slide_width);\n\t\t\tvar slide_height = '0';\n\t\t\tif (min_height == 'aspect43') {\n\t\t\t\tslide_height = (slide_width \/ 4) * 3;\t\t\t\tslide_height = Math.round(slide_height);\n\t\t\t} else if (min_height == 'aspect169') {\n\t\t\t\tslide_height = (slide_width \/ 16) * 9;\t\t\t\tslide_height = Math.round(slide_height);\n\t\t\t} else {\n\t\t\t\tslide_height = (slide_width \/ 100) * min_height;\t\t\t\tslide_height = Math.round(slide_height);\n\t\t\t}\n\t\t\tjQuery('#slider_16843 .owl-item .sa_hover_container').css('min-height', slide_height+'px');\n\t\t}\n\t\tvar owl_goto = jQuery('#slider_16843');\n\t\tjQuery('.slider_16843_goto1').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 0);\n\t\t});\n\t\tjQuery('.slider_16843_goto2').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 1);\n\t\t});\n\t\tjQuery('.slider_16843_goto3').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 2);\n\t\t});\n\t\tjQuery('.slider_16843_goto4').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 3);\n\t\t});\n\t\tjQuery('.slider_16843_goto5').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 4);\n\t\t});\n\t\tjQuery('.slider_16843_goto6').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 5);\n\t\t});\n\t\tjQuery('.slider_16843_goto7').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 6);\n\t\t});\n\t\tjQuery('.slider_16843_goto8').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 7);\n\t\t});\n\t\tjQuery('.slider_16843_goto9').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 8);\n\t\t});\n\t\tjQuery('.slider_16843_goto10').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 9);\n\t\t});\n\t\tjQuery('.slider_16843_goto11').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 10);\n\t\t});\n\t\tvar resize_16843 = jQuery('.owl-carousel');\n\t\tresize_16843.on('initialized.owl.carousel', function(e) {\n\t\t\tif (typeof(Event) === 'function') {\n\t\t\t\twindow.dispatchEvent(new Event('resize'));\n\t\t\t} else {\n\t\t\t\tvar evt = window.document.createEvent('UIEvents');\n\t\t\t\tevt.initUIEvent('resize', true, false, window, 0);\n\t\t\t\twindow.dispatchEvent(evt);\n\t\t\t}\n\t\t});\n\t});\n<\/script>\n<\/p>                    <\/div>\n\t\t        \n                    <div id=\"videos-tab\" class=\"clearfix eael-tab-content-item \" data-title-link=\"videos-tab\">\n\t\t\t\t        <div class=\"yt_iframe\"><iframe title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/szkzmpzZeY4?rel=0\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>                    <\/div>\n\t\t                    <\/div>\n        <\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Learn about the importance of savings money. Identify avenues to invest the savings in suitable investment vehicle. Compare historical returns generated by different assets, and know what to expect from you ..<\/p>\n","protected":false},"author":1,"featured_media":10992,"parent":10248,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"class_list":["post-10262","markets","type-markets","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets\/10262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets"}],"about":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/types\/markets"}],"author":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/comments?post=10262"}],"version-history":[{"count":57,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets\/10262\/revisions"}],"predecessor-version":[{"id":74675,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets\/10262\/revisions\/74675"}],"up":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets\/10248"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/media\/10992"}],"wp:attachment":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/media?parent=10262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/categories?post=10262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}