Introduction:
Money is the circulating medium of exchange as defined by the government.Money is the power through which we can acquire any resource we want.It makes our life easier, standard of living, educational level and various other factors also depend upon it.
Smart money is the capital that is being controlled by the institutional investors and other financial institutions.The money which itself make money is the smart money.Smart money grows at a certain generally more than the inflation rate.
How to make your money Smart?
A difference between the rich person and a wealthy person . The rich person can have a huge amount of money but a wealthy person have a decent amount of smart money. After several years the wealthy person will be richer than the rich person because his money will make money for him.
Here's the question arises the money you have is the smart money or just normal money.
There is only one way to make your money smart that is investing them in mutual funds, stock market , elss ,debt fund etc.
The money deposited in your bank account, fixed deposit , rd, is the dumb money but it's necessary and it has its own importance in certain way.The money in your bank account is not considered an investment.
Money invested in mutual funds if invested regularly so called Systematic Investment Plan work's upon the principle of Compound Interest. Your return depends upon how much time you have given to your investment.
Albert Einstein had said the compound interest is the eight wonder of the world. The one who understands it earns it and the one who don't pays it.
There is only one way to make your money smart that is investing them in mutual funds, stock market , elss ,debt fund etc.
The money deposited in your bank account, fixed deposit , rd, is the dumb money but it's necessary and it has its own importance in certain way.The money in your bank account is not considered an investment.
Money invested in mutual funds if invested regularly so called Systematic Investment Plan work's upon the principle of Compound Interest. Your return depends upon how much time you have given to your investment.
Albert Einstein had said the compound interest is the eight wonder of the world. The one who understands it earns it and the one who don't pays it.
Why one should invest ??
There might be a list of reasons why one should invest but one reason why I tell to invest is just to earn the more amount of interest rate per annum the bank is giving on fixed deposit , savings account etc. Never invest your emergency savings .
Just keep your investment simple.
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