Di Posting Oleh : Crew Blog
Kategori : 2016 COMMERCE FAQ INVESTMENTS Q&A STOCK MARKET STOCKS
Investment is an act of putting your money into different financial instruments with a hope of making profitable returns in the future. Investment can be done on various financial instruments such as that of stocks, fixed deposits, mutual funds, systematic investment plans (SIPs), real-estate etc.
The profit share provided by the company to its stock holders can be in the form of dividend payments or the stock holder can make a profit over the money initially invested by being able to sell the stocks they own to other interested stock buyers. Sometimes, the company may itself offer option for its stock holders for buying back its share from them.
In the context of mutual funds or systematic investment plans (SIPs), the investors will not be investing their money directly into any company's stocks but rather will give their money to a Fund Manager of a large financial institution who is in-charge of managing the investment of these funds into appropriate stocks and tradings that are deemed profitable at the time of fund management. This type of investment into Mutual Funds and Systematic Investment Plans (SIPs) are suitable for those people who cannot find the time to follow up on the stock market on a daily basis due to their commitment to other activities such as their full time jobs.
Thus, in order for such people to still be able to invest in stock markets, large financial institutions such as Banks and Insurance companies hire a Fund Manager who's main job then is to take care of these peoples' investments.