By: Tarun Prakash Srivastava, Sr. Executive Editor-ICN Group
Keep in mind – The rule of ‘Accurate Entry and Accurate Exit’ in this type of investments is the key points, and you earn such skill only after a long experience.
Association with successful persons
If there is a coordination of a successful person available to you, please do not let this occasion go to waste. Remember – success and failure are dependent on your point of view. A successful person’s attitude and special reaction in special circumstances is a unique experiment of the laboratory of life that can open up a new path to improve your thinking, ideology, perceptions, and prejudices.
Investing in Real Estate
I am a law specialist, and immovable properties are my field of expertise. My city dwellers say that my name is a brand in banking, finance, property, mortgages, real estate, etc. If it is so, I do not have the credit for it, and it should be credited to more than forty banks and financial institutions and best city developers and builders of the city, who fully trust me in every area of the property and provide me opportunities to work with them, which not only increased my income but provided extension to the horizon in my experience. These people gave me the chance to make bricks of my initial savings, through which I created new pathways around my quest for knowledge and wealth and started acquiring the principles of the science of money and also implementing them. I am grateful to the heart of so many such people in my life.
Based on my earned skill and experience, I say that the investment made on a proper real estate is more secure and more profitable than all investments made by you. In the context of India, it becomes even more important and effective, where the population with the pressure on the land is increasing every year. The object which is more demanding in the market and limited to its fulfillment starts gradually valuable and precious.
Different positions and areas of fixed assets also have different effects on them, even though some rules are universal. Like:
1-The value of land always increases but the value of construction decreases.
2-Large plots taken at the distance from the population give less benefit in comparison to the even small plots in populated areas because the value of the land also contains the value of development.
3-Classification of properties can be done in such a way – (1) Highest Moneyed (Premium) Assets (2) Medium Moneyed (Medium) Assets and (3) Low Moneyed (Lower) Assets
4-Investments made on Highest Moneyed (Premium) Assets based on high wealth at one place, is riskier and less beneficial when compared to investments made by the Lower Moneyed (Lower) Assets by money scattering.
5-Buyers of Higher Moneyed (Premium) Assets are very less; hence demand is always less in comparison to their supply, so the rate of profit is always less than the amount invested.
6-The buyers of Lower Moneyed (Lower) Assets are present at a huge number, and by higher demand than the supply, the investment made on them earns more profit in comparison to the amount of investment made.
Real estate and investment on it is a huge topic, and I plan to write a book on this subject in future. Here I am just telling you the type of investments, and in the Indian environment, if you have planted the above-mentioned seeds into your mind well; there is no more profitable investment.
Stock Market
After real estate, the stock market is the most popular, but risky investment. I believe that investment in this sector should be incredibly balanced and it should be only a small part of your total investment. The stock market is highly sensitized, and its pulse is strongly affected by every national and international issue and ups and downs. The potential income level here is very high, but the probability of loss is also at the highest level. It is controlled by SEBI, which means an enacted entity called Securities and Exchange Board of India.
The stock market is mainly of three types:
- Primary level market (Primary market)
- Second level market
- Daily Market (Daily Trading)
To understand the idea of the stock market, we have to understand some fundamental facts. In India, the company is considered a legal person through the Indian Companies Act. There are two types of companies – (1) Private Limited Company and (2) Limited Company. Private limited companies are those companies which hold their stake among its directors only, while a limited company has the right to sell its share and bonds among the public. These companies are registered with Registrar of Companies and do their work and trade according to the said Act, and related regulations and all such companies are also registered with the stock exchange institution for sale in the public and being its shares in the market according to its standards and the norms set by SEBI. When a new stock market of a company is introduced in the market and is opened for sale, then every such sale is the sale of the primary level market (primary market). In the primary level market, we have to apply to purchase the said shares through the contracted service provider institution. Occasionally, when the applications are received more than the shares available for sale, the unsuccessful applicants get the return of their money with applicable interest thereon.
Pre-sold shares are bought and resold in the second level market. By the performance of the respective company, its shares earn profit or loss, and by the prospect of earning the company’s future profit, they are bought and sold in their second level market. Shares are in the form of a fixed unit, and their profit and loss are also reflected per unit basis.
Along with this, there is also an option of daily trading which is present in this market where shares are bought and sold by ups and downs in shares between the market opening and closing every day, and many people earn profit or loss by buying and selling the shares in the same day. Sometimes, they sell and buy the shares for a number of times in a single day. This market is extremely quick and fast-moving market; and if there is the slightest mistake in the forecast, there is always the possibility of heavy loss.
I consider the stock market as a very sensitive option of earning and, according to me, you should have enough information regarding the market and the related company to earn profits, as well as to have most updated information of national and international activities. I have a clear perception about this option that in this regard, in your initial journey of money, you should avoid investments through this mode and if you have your interest in this option, you must consult a skilled guide. Accordingly, only a certain amount of your income should be invested so that if you have a loss in this option, you still have the money to be invested in other options. The benefit earned through the other investments may adjust your loss.
Keep in mind – The rule of ‘Accurate Entry and Accurate Exit’ in this type of investments is the key points, and you earn such skill only after a long experience. I want you should not lose your initial savings so please be extremely careful. If you are young, then you can take more risk than other older people because you have more time for recovery. Nevertheless, the accurate experience is very important in this option.
Tarun Prakash Srivastava
From my book ‘Science of Money’ available on Amazon.com in English at http://bit.ly/Science-Of-Money and in Hindi at http://bit.ly/साइंस-ऑफ़-मनी
