ECONOMICS
RISK AND RETURN
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
save
|
|
|
invest
|
|
|
borrow
|
|
|
get a job
|
Detailed explanation-1: -There is only one way in which you can double your money in 5 years and that is through mutual funds. Despite the market risks, mutual funds can earn significant returns in 5 to 6 years. This is because mutual funds offer higher returns than any other investment option and higher risk.
Detailed explanation-2: -Ideally, you’d start saving in your 20s, when you first leave school and begin earning paychecks. That’s because the sooner you begin saving, the more time your money has to grow. Each year’s gains can generate their own gains the next year-a powerful wealth-building phenomenon known as compounding.
Detailed explanation-3: -Record your expenses. The first step to start saving money is figuring out how much you spend. Include saving in your budget. Find ways to cut spending. Determine your financial priorities. Pick the right tools. Make saving automatic. Watch your savings grow.