What is the difference between saving investing and speculating?

While investing typically offers better returns than saving, it also carries more risk, as the value of your investment bounces up and down — at least, when looked at in the short term. Speculating involves putting your money at risk with the hope that you will earn a high return in a short period of time.

What investment has the least liquidity?

Land
Land and real estate are considered the least liquid investments as they can take several weeks or months to sell them. So, one must consider the liquidity of any asset before investing in it.

What is speculating in investing?

Speculation is the act of buying or selling assets that have an increased chance of significant losses. Speculation is common among investors who trade penny stocks and over-the-counter (OTC) investments.

What are investment tools?

In general, investment tools are tools that will help us make smart, informed decisions about our financial future. They break down into a few categories: trading, education, tracking, and analysis. Brokerages fall into the category of trading. Trading is anywhere you buy or sell stocks, mutual funds, ETFs, etc…

What makes an asset liquid?

A liquid asset is a reference to cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted into cash is similar to cash itself because the asset can be sold with little impact on its value. Cash on hand is considered a liquid asset due to its ability to be readily accessed.

Are chit funds a good investment?

“. Chit funds are not some investment products in which someone invests! By design you can see that it’s only a support structure for needy people who are unsure of their cash flows or some big expenses coming on the way. It’s only for those who can’t get loans from banks or some lender.

Is 12\% a pathetic return in chit fund?

This is just a pathetic return!!! This is an eye-opener for people who invest in chit fund before doing the calculation. The same amount of Rs 8,88,800 invested equally each month in a mutual fund would have fetched around 11 lakh at 12\% annual return.

How are chit funds regulated in India?

Chit fund companies are regulated in most of the states by Central Chit Funds act,1982 and they come under the purview of state governements. RBI has no role in regulating them. But still you know how easy it is to do frauds and scams in India (don’t forget commonwealth & 2G and 3G and 4G scams, wah ! I am futuristic).

How does the ABC chit fund work?

The ABC Chit Fund Company runs the chit fund business from past 10 years. Assume it starts a new chit, from April 2017. The new chit is open for 20 people, with a maximum contribution of Rs.1000 per month for 20 months. The subscribers of this chit, pay the monthly subscription amount to the chit fund company, also known as agent/foreman.