Everything you need to know about Investment

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In recent years common people have come across a new term investment which is widely promoted in tv, social media, YouTube. I have found that people are not well aware of how and where to invest.
So, in this blog of about 2000 words I am going to tell you about:

  1. What is investment and returns
  2. Pros and cons of investment
  3. Are you eligible of investing?
  4. How to start
  5. How much to invest
  6. Risk management in brief
  7. Should you take this as your career
  8. Different fields that I suggest you to invest in
    In this blog post I am going to explain you like a child, who is trying to walk on his own steps. So its up to you, but I always suggest to read this post till the end.

What are investment and returns?


Investment is to put money in banks, businesses, shares, bonds and so on in a hope that you will enjoy your gain in the mere future.
Returns are the ratio between the net profit and the net investment. Talking in simple words this simply means that how much gain you have at the end of the day, month or financial year.

Don’t even think of investment without knowing it’s good or bad.

Pros of investment:

Pros side is the best in this blog.
Investment yields you big returns, some people even take this as their career. Let me tell you that you can double your money in months after investing.
Investment is not a business and doesn’t require any effort at all. All the work is done with your money.
It can tackle inflation.
You can invest in government PSU bonds to secure your life after 70.

Cons of investment:

Investing totally depends on how much you invest and when you invest so, you have a lot more chances to book losses more than your earnings.
This field requires a lot of research and time in the beginning.
In the beginning, almost all of the people have to face losses big or small.
The chances of making money and losing all are not equally the same.

Now you know what is good or bad and what investment is all about. Let’s now discuss are you eligible.

Are you eligible?


Anybody can invest their money in whatever they want. The only criteria is they should be considered an adult by their country. In my case, I am an Indian and acc to the Indian constitution a person is considered an adult after 18 years.

But I suggest you invest only if your monthly income is above 10,0000 Indian rupees. I am very sorry but in this whole post, I am going to consider Indian rupees. As my nationality is India and I am more comfortable with rupees than dollars.

So far so good, we have covered three very simple topics. now comes the main thing.

How to start?

I am not going to suggest you practice investment by investing your real money at risk. I would rather suggest you use real-time stock market simulation games to virtually and safely practice investment. This won’t yield you any profit but as a beginner, you will understand the basics and have a good idea of what you are doing.

I would also suggest you note down what mistakes you did by the time you were buying shares. You can figure out when to buy shares and when to sell them. Believe me, if you learn these two things you are the next warren buffet.
Here are some online stock market games:

  1. Tradingkart Stock Simulator
  2. How The Market Works
  3. Wall Street Survivor

You can use these free games to practice the stock market. Note that investment is not a stock market there are many areas like commodities, bonds, mutual funds, cryptocurrency and many more.

Now let’s understand.

How much to Invest?

Any kind of investment should always be from your extra money that is left after fulfilling your needs.
There are many ways to decide how much you can invest. I am going to tell you what I generally do. I generally save 20%, use 50% and then invest 30% of my total income. You need to decide what suits you the best.

Now let’s discuss the most terrible and frustrating part of this post.
Risk management in brief.
Read this carefully and if possible, read this 2 to 3 times. Risk management is a very big topic and hence cannot be taught in a short text, if you request I would make a new post regarding this topic.

Risk management in brief


Risk is the chance of losing your money or losses that might happen. Therefore, risk management is the management of the chance of losing your money.
I am not going into the technical part, for now, I am just going to tell you some of the tricks that I use.

  1. Never ever invest your money in one stock, bond, one mutual fund or any single thing .
  2. Always invest when there is news, for example HFCL made 3 times profit than the last financial year, these kinds of news are the best and gives you the right opportunity to invest.
  3. Never invest in cheap stocks and bonds.
  4. Use MACD and MA indictors for stock analysis.
    Take these tricks as laws of investment .

All done we know the basics of invest but a question comes here.

Should you take this as your career?

My suggestion is no, I always suggest people start their own business. You have full control over your own business but investment sometimes is like walking at the edge of a knife a little slip and you lose your money.

Different fields that you can invest in.

  1. Stock market:
    Believe me this is the best place to invest your moneys. I have made a lot of money by holding shares for long time like for 1 year and then selling it. Good news for Indians that if you hold a share for more than 1 year then you don’t have to pay any kind of tax.
  2. Bond:
    Specially for people now in their 40s I would suggest them to invest their money on government bonds. They yield a lot of money If invested correctly.
  3. Mutual fund:
    This is a very good area to invest and it offers the least risk. For people not willing to invest in risky areas this is a very good option.

This is so long and I am now tired. so, let’s end this here and I will meet you in the next blog post.
MK Gupta (investor and financial advisor)
West Bengal, India.

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