Simplifying The Financial Market Investment
There are some general beliefs about the financial market like Investing in the financial market is a risky task, Chances of losing money are more, This is for wealthy people and a luxurious thing to do, etc.
If we try to know it more closely we would better understand that this is a smart choice, requires a good strategy and implementation.
Investing in the financial market and Doing a Business are very much the same. The final objective of both is the same - To earn a profit. So, if you try to understand financial market investment as a business purpose you can get more close to it.
Business philosophy -
Everything happening is business Our every effort is for profit or loss. Even god is a CEO and this earth and many unknown living planets are her business units.
Business exists everywhere; socially, politically, and environmentally.
If you are a working professional or doing a job, you are a part of an organization or group, public or private, helping the owner or CEO to run the business to earn profits, on behalf you got a little part of the profit as salary.
Here we only want to say that whatever you are doing for earnings is a part of a business. And our object is to tell you that making a financial investment plan is an alternate option by which you could be a businessman or an entrepreneur.
The easiest way to be in Business - Save and Invest
A risk-taker uses her capital, gathers other elements of production, produce service or product, sell them to earn the profit. This we call the business.
In a one-liner, an investor invests her capital to earn the profit. A Financial Investment plan does the same thing.
The financial market provides you the chance to invest in an established business or in funds where you only have to invest and get a return no need to take part in any traditional business process initially.
Now, this is up to you how you make your investment plan, what elements you add in the portfolio to be moderate in risk and return.
Three Kind of investor here -
- One who invests in high-risk elements to earn high and quick. They like to invest only in Equities.
- Second, who wants to take a low risk and only want to invest in debt kind of elements which generated a return at a very low rate.
Both are not the ideal choice for investors.
- Third who involves a mix of the elements. Neither too high risk nor low return. This we call diversified Investment.
Equanimity In Investment –
Having the Equanimity about happenings in life is the way of getting enlightenment, the same thing applies to finance management.
Your portfolio is the mind of your investment plan and when you make the investment portfolio where you add funds from different market sectors, different investment options; You add equity funds, debt fund, security fund, Insurance policies, etc, so that you can maintain a balance between risk and return.
This is we can say applying equanimity in finance management and financial terms, it calls having the diversified fund in the portfolio.
Business is about investing in own ideas and earn a profit, Investing in the financial market is about investment on the profitability of other's business and earn a return. Both could build assets and capital.