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What Is The Difference Between Debt and Equity Investments

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It's never too early to start financial planning for future needs, as the dream house, new cars, pension funds, early marriage, foreign travel, etc. Most young people who are in the first 30 or 20 in late great care to make money, but spend the hard earned money right now to live the married life. daily life is for them. They do not care much about the future needs and tend to fight when their purchasing power decreases with age. These people will realize their mistake later part of their life and regret not having a good plan.

I was one of those people who love to live life king size today. I used to spend all they earn very little or no savings. Thanks to my brother who found my kind of shopping bad and I learned a lot about the importance of saving and planning for the future. I understand the importance of savings and started to plan future needs.

I read a lot of information on financial planning and expenditure control instincts. Let me share my background and my thoughts on this blog with a new set of Personal Finance. I hope you guys will join me to exchange views and plan a better future.

The basics of financial planning is to understand various investment options available and the nature of their statements. financial investment products are classified into two types - debt and equity.

debt investment gives a guaranteed return and predetermined, but the yields are very low. Tell me who give me money and I promise to make money with a fixed interest - is a debt investment. debt investment options available in the market - the fixed rate deposits, government bonds, PPF, etc. These investments are safe, secure and at the same time, yields are low. In India, we get an average 8% return on debt.

The investments are totally opposed to debt - which offer high returns, but there are many risks associated with them. Let's say you invest in a company and do the same to share their profits with you. If the company is doing well and posting high profits, you get a high performance, but if the company loses bankruptcy or lose your investment or to obtain a much lower yield. Typical examples of investment in shares - invest in equities and equity funds. On an equity investment gives average yields ranging from 15% - 25% over the period with a considerable amount of risk associated with them.

I hope that these basic principles will help you have begun to explore various investment options available. I want to conclude this post with what I firmly believe in

No matter what you win today, but how many questions we have put the future of a game.

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