Saving Vs Investing

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Saving and Investing
Everyone would have heard about these two terms Saving & Investing, Are these terms Same or they are different??

Let's see what these Saving and Investing actually mean and how do they differ from each other.

Savings means:

• Depositing cash in a safe place
• Having minimal return and 
• Less Risk

So now you know that saving is keeping your money in a safe place and which will fetch you some return.

Investing Means:

• Purchasing an Asset or Investment
• Having a potential of high return and
• High Risk

Investing is basically purchasing an asset or investment expecting a higher return, here one should consider about the risk factor involved. Sometimes you can get better returns than saving and sometimes you will end up with losing lot of money.

Savings Options

There are various options for saving money these includes: 

• Savings Accounts
• Fixed Deposits
• PF/PPF Funds
• National Saving Certificate 

Investing Options

These are some of the Investing Options:

• Stocks (Equity)
• Bonds
• Mutual Funds (MF)
• Options – Put and Call
• Futures
• Real Estate, etc

All these above will fetch good returns when compared to saving options, but all the above are subjected to market risk.

Why Saving or Investing???

• For Covering short term or long term personal expenses
• For Purchasing House, Car, etc
• For Spending on Vacations
• Retirement Plans, etc