ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Investment must be rational; if you can’t understand it, don’t do it. It’s only when the tide goes out that you learn who’s been swimming naked. Risk comes from not knowing what you’re doing.

Detailed explanation-2: -1. Invest in what you know…and nothing more. One of the easiest ways to make an avoidable mistake is getting involved in investments that are overly complex. Many of us have spent our entire careers working in no more than a handful of different industries.

Detailed explanation-3: -If you are saving up for a short-term goal and will need to withdraw the funds in the near future, you’re probably better off parking the money in a savings account. Conversely, if your goals are longer term, you’ll generally find you can obtain more satisfactory results from investing.

Detailed explanation-4: -Using a savings account and an emergency fund for short-term expenses is important, but investing for retirement and the future is arguably just as crucial. While it may feel pointless to start investing if you don’t have much money, it can still be incredibly worthwhile.